Reddit Is Tweaking Its Ad Strategy—Can Outcome-Based Pricing Outperform the Competition? 

Reddit, Inc.’s first-quarter 2025 results underscored the platform’s momentum since its 2024 IPO, combining rapid top-line expansion with improving profitability. Revenue reached $392 million, a 61 percent year-over-year jump, and advertising remained the engine of growth by delivering $359 million, also up 61 percent. Weekly active users climbed to 401 million and daily active users to 108 million—both increases of roughly 31 percent—while international communities in markets such as France, Spain, and Brazil expanded at nearly double the overall pace, pointing to early success in Reddit’s localisation strategy. Operational discipline complemented that user and revenue surge: adjusted EBITDA rose to $115 million and GAAP net income to $26 million, lifting the adjusted EBITDA margin to 29 percent, more than twenty-five percentage points above the prior year level. Product innovation helped fuel monetisation gains; refreshed machine-learning models, Dynamic Product Ads, and richer measurement tools delivered better ad outcomes, and features such as Reddit Answers, improved search, and machine translation broadened content discovery and accessibility.