Q1 2026 Reddit Inc Earnings Call

April 30, 2026

Speaker #1: Welcome, everyone, to Reddit's first quarter 2026 earnings call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session.

Speaker #1: If you would like to ask a question during this number 1 on your telephone keypad. If you would like to withdraw your question, again, press star 1.

Speaker #1: Thank you. I would now like to turn the call over to Jesse Rose, head of investor relations, Jesse, you may begin your conference.

Speaker #2: Thanks, Krista. Hi, everyone. Welcome to Reddit's first quarter 2026 earnings call. Joining me are Steve Huffman, Reddit's co-founder and CEO; Jen Wong, Reddit COO; and Drew Vollero, Reddit CFO.

Speaker #2: I'd like to remind you that our remarks today will include forward-looking statements and actual results may vary. Information concerning risks and other factors that could cause these results to vary is included in our SEC filings.

Speaker #2: These forward-looking statements represent our outlook only as of the date of this call, and we undertake no obligation to update any forward-looking statements. During this call, we will discuss both gap and non-gap financials, reconciliation of gap to non-gap financials can be found in our letter to shareholders.

Speaker #2: Our first quarter letter to shareholders and earnings press release are available on our investor relations website, and investor relations subreddit. And now I'll turn the call over to Steve.

Speaker #3: Thanks, Jesse. Hi, everyone, and thank you for joining us today. We're excited to start the year off with a strong first quarter. As we've been building Reddit over the years, I've often reflected on and been inspired by the unique opportunity in front of us, and the fact that Reddit is truly a one-of-one company.

Speaker #3: That idea came up again and again during Q1, with one of the most tangible proof points being our strong commercial results. This marks our seventh consecutive quarter with revenue growth over 60%, with industry-leading gross margins over 90%, and adjusted EBITDA margin of 40%, and record cash flow of more than $300 million.

Speaker #3: At the same time, our capital expenditures remained low at just $1 million. Underscoring the advantage of Reddit's capital light model. When you look across the more than 300 publicly traded tech companies, there's only one that combines this type of growth, profitability, and efficiency and that's Reddit.

Speaker #3: Our commercial success is differentiated because our community product is differentiated. What powers these results are Reddit's raw materials. First, we have deeply engaged users who come to Reddit for high-intent uses, authentic recommendations and answers to questions like, "What should I watch next?" and "What type of stroller is best for two kids?" Second, we have an ads business that is built on context, interest, and commercial intent.

Speaker #3: Around 40% of conversations on Reddit are commercial in nature, where people are actively discussing products, services, and purchase decisions. And these conversations are uniquely influential.

Speaker #3: 84% of shoppers say they feel more confident in their decisions after researching on Reddit. When you combine these two things, engaged communities and commercial intent, you create a powerful environment for advertisers.

Steve Huffman: The Reddit for high intent uses authentic recommendations and answers to questions like: What should I watch next? And what type of stroller is best for 2 kids? Second, we have an ads business that is built on context, interest, and commercial intent. Around 40% of conversations on Reddit are commercial in nature, where people are actively discussing products, services, and purchase decisions. These conversations are uniquely influential. 84% of shoppers say they feel more confident in their decisions after researching on Reddit. When you combine these 2 things, engaged communities and commercial intent, you create a powerful environment for advertisers. We see this in the outcomes we're delivering and in the continued scaling of our ads business and ARPU growth. Another reason Reddit stands out today is our position in the AI landscape.

Steve Huffman: The Reddit for high intent uses authentic recommendations and answers to questions like: What should I watch next? And what type of stroller is best for two kids? Second, we have an ads business that is built on context, interest, and commercial intent. Around 40% of conversations on Reddit are commercial in nature, where people are actively discussing products, services, and purchase decisions. These conversations are uniquely influential. 84% of shoppers say they feel more confident in their decisions after researching on Reddit. When you combine these two things, engaged communities and commercial intent, you create a powerful environment for advertisers. We see this in the outcomes we're delivering and in the continued scaling of our ads business and ARPU growth. Another reason Reddit stands out today is our position in the AI landscape.

Speaker #3: We see this in the outcomes we're delivering and in the continued scaling of our ads business and ARPU growth. Another reason Reddit stands out today is our position in the AI landscape.

Speaker #3: Reddit is built on more than two decades of human conversation, over 25 billion posts and comments, and every month, our communities generate the equivalent of Wikipedia's entire content library in new content.

Around 40% of conversations on Reddit, are commercial in nature, where people are actively discussing products, services and purchase decisions.

Speaker #3: As AI becomes more prevalent, people increasingly seek out real, human perspectives and, in turn, AI models rely on these perspectives to train and power their products.

And these conversations are uniquely influential 84% of Shoppers, say they feel more confident in their decisions. After researching, on Reddit,

Speaker #3: Scarce assets tend to become more valuable over time, and authentic human conversation at scale is becoming increasingly rare. Reddit's conversations are like oil for the modern internet.

When you combine these 2 things engaged communities and Commercial. Intents you create a powerful environment for advertisers. We see this in the outcomes, we're delivering, and then the continued scaling of our ads business, and our food growth,

Steve Huffman: Reddit is built on more than 2 decades of human conversation, over 25 billion posts and comments. Every month, our communities generate the equivalent of Wikipedia's entire content library in new content. As AI becomes more prevalent, people increasingly seek out real human perspectives, and in turn, AI models rely on these perspectives to train and power their products. Scarce assets tend to become more valuable over time, and authentic human conversation at scale is becoming increasingly rare. Reddit's conversations are like oil for the modern Internet, a foundational resource powering the next generation of technology. On the user side, we are making steady progress, but we still have work to do to increase frequency and accelerate growth toward the levels we see on leading platforms. We believe Reddit has the potential to be one of a handful of scaled global platforms on the Internet.

Steve Huffman: Reddit is built on more than two decades of human conversation, over 25 billion posts and comments. Every month, our communities generate the equivalent of Wikipedia's entire content library in new content. As AI becomes more prevalent, people increasingly seek out real human perspectives, and in turn, AI models rely on these perspectives to train and power their products. Scarce assets tend to become more valuable over time, and authentic human conversation at scale is becoming increasingly rare. Reddit's conversations are like oil for the modern internet, a foundational resource powering the next generation of technology. On the user side, we are making steady progress, but we still have work to do to increase frequency and accelerate growth toward the levels we see on leading platforms. We believe Reddit has the potential to be one of a handful of scaled global platforms on the internet.

Another reason, Reddit stands out today is our position in the AI landscape.

Speaker #3: A foundational resource powering the next generation of technology. On the user side, we are making steady progress, but we still have work to do to increase frequency and accelerate growth toward the levels we see on leading platforms.

Reddit is built on more than 2 Decades of human conversation over 25 billion posts and comments. And every month our communities generate, the equivalent of Wikipedia's entire Content Library in new content.

Speaker #3: We believe Reddit has the potential to be one of a handful of scaled global platforms on the internet. We already have tremendous reach today with nearly 500 million weekly users globally and 200 million in the United States.

As AI becomes more prevalent people increasingly seek out real human perspectives. And in turn, AI models rely on these perspectives to train and power their products.

Speaker #3: Now it's about driving both greater reach and greater frequency. In particular, we're focused on growing our daily user base in the US to a size closer to that of the largest platforms.

Stairs assets, tend to become more valuable over time. And authentic human conversation at scale is becoming increasingly rare.

Reddit's conversations are like oil for the modern internet—a foundational resource powering the next generation of technology.

Speaker #3: Our goal is to reach 100 million daily US users and we're actively executing a strategy to get us there. One thing that has become clear is that product quality leads to growth.

On the user side, we are making steady progress, but we still have work to do to increase frequency and accelerate growth toward the levels we see on leading platforms.

Speaker #3: I believe our previous ways of working yielded the best results we were capable of, but not the results we aspire to. So to get to the next level, we first had to improve ourselves.

Steve Huffman: We already have tremendous reach today with nearly 500 million weekly users globally and 200 million in the United States. Now it's about driving both greater reach and greater frequency. In particular, we're focused on growing our daily user base in the US to a size closer to that of the largest platforms. Our goal is to reach 100 million daily US users, and we're actively executing a strategy to get us there. One thing that has become clear is that product quality leads to growth. I believe our previous ways of working yielded the best results we were capable of, but not the results we aspire to. To get to the next level, we first had to improve ourselves.

We Believe Reddit has the potential to be 1 of a handful of scaled Global platforms on the internet.

Speaker #3: Over the last year, we've made, and continue to make, a number of foundational changes to both our talent and infrastructure that we believe will unlock significantly greater headroom for Reddit's growth.

We already have tremendous reach today with nearly 500 million weekly, users globally and 200 million in the United States. Now it's about driving both greater reach and greater frequency.

Speaker #3: We've strengthened our teams with more people who've successfully grown other major platforms, we've added critical machine learning talent to build the capabilities required for today's internet, and we've improved our processes for data, experiments, and shipping more quickly while still improving quality so we can realize our vision.

In particular, we're focused on growing our daily user base, in the US to a size closer to that of the largest platforms.

Our goal is to reach 100 million daily users, and we are actively executing a strategy to get us there.

1 thing that has become clear is that product quality leads to growth.

Speaker #3: We made advancements across several product areas this quarter that we're encouraged by, including bot verification, improvements in core user engagement, performance gains across the stack, and continued success with machine translation.

Steve Huffman: Over the last year, we've made, and continue to make, a number of foundational changes to both our talent and infrastructure that we believe will unlock significantly greater headroom for Reddit's growth. We've strengthened our teams with more people who've successfully grown other major platforms. We've added critical machine learning talent to build the capabilities required for today's Internet, and we've improved our processes for data, experiments, and shipping more quickly while still improving quality so we can realize our vision. We made advancements across several product areas this quarter that we're encouraged by, including bot verification, improvements in core user engagement, performance gains across the stack, and continued success with machine translation.

Steve Huffman: Over the last year, we've made, and continue to make, a number of foundational changes to both our talent and infrastructure that we believe will unlock significantly greater headroom for Reddit's growth. We've strengthened our teams with more people who've successfully grown other major platforms. We've added critical machine learning talent to build the capabilities required for today's internet, and we've improved our processes for data, experiments, and shipping more quickly while still improving quality so we can realize our vision. We made advancements across several product areas this quarter that we're encouraged by, including bot verification, improvements in core user engagement, performance gains across the stack, and continued success with machine translation.

I believe our previous ways of working yielded the best results we were capable of, but not the results we aspire to. So, to get to the next level, we first need to improve ourselves.

Speaker #3: Looking ahead to the remainder of 2026, our priorities include broadening the top of funnel, improving new user retention, and making Reddit faster across the board, which remains a meaningful opportunity and can lead to an outsized impact.

Over the last year, we've made—and continue to make—a number of foundational changes to both our talent and infrastructure that we believe will unlock significantly greater headroom for Reddit's growth.

We strengthened our teams with more people who successfully grown other major platforms. We've added critical machine machine learning talent to build the capabilities required for today's internet.

Speaker #3: Our mission to empower communities and make their knowledge accessible to everyone is ambitious and it won't be achieved in a single quarter, but we're making steady progress and we won't rest until we get there.

And we've improved our processes for data experiments and shipping more quickly while still improving quality. So we can realize our vision.

Speaker #3: As always, thank you for being on this journey with us. With that, I'll hand it over to Jen.

Speaker #4: Thank you, Steve. Hello, everyone. It was a strong quarter and excellent start to the year for Reddit. There are a number of encouraging factors contributing to our commercial success, and we're also seeing favorable secular trends that support Reddit's long-term opportunity.

Steve Huffman: Looking ahead to the remainder of 2026, our priorities include broadening the top of funnel, improving new user retention, and making Reddit faster across the board, which remains a meaningful opportunity and can lead to an outsized impact. Our mission to empower communities and make their knowledge accessible to everyone is ambitious, and it won't be achieved in a single quarter, but we're making steady progress, and we won't rest until we get there. As always, thank you for being on this journey with us. With that, I'll hand it over to Jen.

We made advancements across several product areas. This quarter that we're encouraged by, including bot verification improvements in core user engagement performance, gains across the stack and continued success with machine translation.

Speaker #4: Beyond the raw materials Reddit has for an advertising platform, Reddit is playing a bigger role in the consumer decision journey. While people are using AI summarized information, people are also increasingly wanting to see and incorporate a breadth of perspectives from other people into their decision-making.

Looking at the remainder of 2026, our priorities include broadening the top of funnel, improving new user retention, and making Reddit faster across the board, which remains a meaningful opportunity and can lead to an outsized impact.

Speaker #4: The value of authentic human perspective is increasing as more information is generated and summarized by models. That's where Reddit stands apart. People are looking for real opinions, real experiences, and real product usage from other people.

Jennifer Wong: Thank you, Steve. Hello, everyone. It was a strong quarter and excellent start to the year for Reddit. There are a number of encouraging factors contributing to our commercial success, and we are also seeing favorable secular trends that support Reddit's long-term opportunity. Beyond the raw materials Reddit has for an advertising platform, Reddit is playing a bigger role in the consumer decision journey. While people are using AI-summarized information, people are also increasingly wanting to see and incorporate a breadth of perspectives from other people into their decision-making. The value of authentic human perspective is increasing as more information is generated and summarized by models. That is where Reddit stands apart. People are looking for real opinions, real experiences, and real product usage from other people. For example, people are coming to Reddit to validate what they read and hear elsewhere, including the responses they get from LLMs.

Jen Wong: Thank you, Steve. Hello, everyone. It was a strong quarter and excellent start to the year for Reddit. There are a number of encouraging factors contributing to our commercial success, and we are also seeing favorable secular trends that support Reddit's long-term opportunity. Beyond the raw materials Reddit has for an advertising platform, Reddit is playing a bigger role in the consumer decision journey. While people are using AI-summarized information, people are also increasingly wanting to see and incorporate a breadth of perspectives from other people into their decision-making. The value of authentic human perspective is increasing as more information is generated and summarized by models. That is where Reddit stands apart. People are looking for real opinions, real experiences, and real product usage from other people. For example, people are coming to Reddit to validate what they read and hear elsewhere, including the responses they get from LLMs.

Our mission to empower communities and make their knowledge accessible to. Everyone is ambitious, and it won't be achieved in a single quarter, but we're making steady progress and we won't rest until we get there. As always, thank you for being on this journey with us with that. I'll hand it over to Jen.

If you see, hello everyone. It was a strong quarter, an excellent start to the year for Reddit.

Speaker #4: For example, people are coming to Reddit to validate what they read and hear elsewhere, including the responses they get from LLMs. This adds to our billions of conversations and perspectives that help people evaluate products, services, and ideas through the lens of genuine human experience.

There are a number of encouraging factors contributing to our commercial success, and we're also seeing favorable secular trends that support Reddit's long-term opportunities.

Speaker #4: This search for human perspectives is embedded in how people make decisions, especially purchase decisions. And as a result, Reddit is becoming more integral to that journey.

Beyond the raw materials Reddit has for an advertising platform, Reddit is playing a bigger role in the consumer decision journey. While people are using AI-summarized information, people are also increasingly wanting to see and incorporate a breadth of perspective from other people into their decision-making.

Speaker #4: At the same time, our advertising platform is becoming increasingly effective at converting that growing intent into meaningful business outcomes. Now moving to our results.

The value of authentic human perspective is increasing as more information is generated and summarized by models.

That's where Reddit stands apart. People are looking for real opinions, real experiences and real product usage from other people.

Speaker #4: In Q1, total revenue grew 69% year over year, to $663 million, and advertising revenue grew 74% year over year, to $625 million, as we saw broad-based strength across the business.

Jennifer Wong: This adds to our billions of conversations and perspectives that help people evaluate products, services, and ideas through the lens of genuine human experience. This search for human perspectives is embedded in how people make decisions, especially purchase decisions. As a result, Reddit is becoming more integral to that journey. At the same time, our advertising platform is becoming increasingly effective at converting that growing intent into meaningful business outcomes. Moving to our results. In Q1, total revenue grew 69% year over year to $663 million, and advertising revenue grew 74% year over year to $625 million, as we saw broad-based strength across the business.

Jen Wong: This adds to our billions of conversations and perspectives that help people evaluate products, services, and ideas through the lens of genuine human experience. This search for human perspectives is embedded in how people make decisions, especially purchase decisions. As a result, Reddit is becoming more integral to that journey. At the same time, our advertising platform is becoming increasingly effective at converting that growing intent into meaningful business outcomes. Moving to our results. In Q1, total revenue grew 69% year-over-year to $663 million, and advertising revenue grew 74% year-over-year to $625 million, as we saw broad-based strength across the business.

For example, people are coming to Reddit to validate what they read and hear elsewhere, including the responses they get from LLMs.

Speaker #4: Revenue growth in Q1 was driven by a combination of both impressions and pricing growth, reflecting the scale of our platform and our investments in the ad stack to deliver strong outcomes and make every impression more valuable.

Experience this search for human, perspectives is embedded in how people make decisions, especially purchase decisions. And as a result credit is becoming more integral to that Journey.

Speaker #4: Our investments in the ad stack, including machine learning for signal optimization and ad formats, combined with our go-to-market strategy, are delivering meaningful outcomes for advertisers and driving strong growth in new advertisers.

At the same time, our advertising platforms are becoming increasingly effective at converting that growing intent into meaningful business outcomes.

Now, moving to our results.

Speaker #4: In Q1, conversion-driven, lower-funnel revenue remained an area of strength, growing triple digits year over year. Performance-oriented revenue represents over 60% of total ad revenue and is well-balanced across industry verticals, creating durability and resilience while still leaving significant headroom for growth.

Jennifer Wong: Revenue growth in Q1 was driven by a combination of both impressions and pricing growth, reflecting the scale of our platform and our investments in the ad stack to deliver strong outcomes and make every impression more valuable. Our investments in the ad stack, including machine learning for signal optimization and ad formats, combined with our go-to-market strategy, are delivering meaningful outcomes for advertisers and driving strong growth in new advertisers. In Q1, conversion-driven lower funnel revenue remained an area of strength, growing triple digits year-over-year. Performance-oriented revenue represents over 60% of total ad revenue and is well-balanced across industry verticals, creating durability and resilience while still leaving significant headroom for growth. In Q1, we saw strength across most of our top verticals, particularly retail, CPG, tech, and media and entertainment, while the number of active advertisers on the platform grew more than 75% year-over-year.

Jen Wong: Revenue growth in Q1 was driven by a combination of both impressions and pricing growth, reflecting the scale of our platform and our investments in the ad stack to deliver strong outcomes and make every impression more valuable. Our investments in the ad stack, including machine learning for signal optimization and ad formats, combined with our go-to-market strategy, are delivering meaningful outcomes for advertisers and driving strong growth in new advertisers. In Q1, conversion-driven lower funnel revenue remained an area of strength, growing triple digits year-over-year. Performance-oriented revenue represents over 60% of total ad revenue and is well-balanced across industry verticals, creating durability and resilience while still leaving significant headroom for growth. In Q1, we saw strength across most of our top verticals, particularly retail, CPG, tech, and media and entertainment, while the number of active advertisers on the platform grew more than 75% year-over-year.

In q1, total revenue grew. 69% year-over-year to 663 million and advertising Revenue. Grew 74% year-over-year to 625 million as we saw broad-based strength across the business.

Speaker #4: In Q1, we saw strength across most of our top verticals, particularly retail CPG, tech, and media and entertainment, while the number of active advertisers on the platform grew more than 75% year over year.

Revenue growth in q1 was driven by a combination of both Impressions and pricing growth reflecting the scale of our platform and our investments in the ad stack to deliver strong outcomes and make every impression more valuable

Speaker #4: Now I'll discuss the progress in our ad stack and roadmap, where our investments are measurable and our strategy is to make all businesses successful on Reddit by delivering market-competitive outcomes across objectives.

Our investments in the ad stack including machine learning for Signal optimization and AD formats combined with our go to market, strategy are delivering meaningful outcomes for advertisers and driving. Strong growth in new advertisers in q1 conversion, driven, lower funnel Revenue remained in area of strength. Growing triple digits year-over-year.

Speaker #4: We're executing this strategy across three areas. Number one, scaling automation through our ads platform and Reddit Max. Number two, delivering advertiser value across all objectives.

performance-oriented Revenue represents over 60% of total ad revenue and is well balanced across industry, verticals, creating durability and resilience while still leaving significant Headroom for growth

Speaker #4: Number three, expanding the Reddit for business ecosystem. Now starting with automation. Our strategy is to integrate more automation and AI into our ad stack to enable faster adoption of new features.

Speaker #4: Ensure advertisers are set up to get the best performance from Reddit ads and increase the productivity and impact of our sales team. Reddit Max launched to beta in early Q1, and we're seeing strong adoption and performance outcomes for converting mid and lower-funnel advertisers.

Jennifer Wong: Now we'll discuss the progress in our ad stack and roadmap, where our investments are measurable and our strategy is to make all businesses successful on Reddit by delivering market competitive outcomes across objectives. We're executing this strategy across three areas. Number one, scaling automation through our ads platform and Reddit Max. Number two, delivering advertiser value across all objectives. Number three, expanding the Reddit for Business ecosystem. Now starting with automation, our strategy is to integrate more automation and AI into our ad stack to enable faster adoption of new features, ensure advertisers are set up to get the best performance from Reddit ads, and increase the productivity and impact of our sales team. Reddit Max launched to beta in early Q1, and we're seeing strong adoption and performance outcomes for converting mid and lower funnel advertisers.

Jen Wong: Now we'll discuss the progress in our ad stack and roadmap, where our investments are measurable and our strategy is to make all businesses successful on Reddit by delivering market competitive outcomes across objectives. We're executing this strategy across three areas. Number one, scaling automation through our ads platform and Reddit Max. Number two, delivering advertiser value across all objectives. Number three, expanding the Reddit for Business ecosystem. Now starting with automation, our strategy is to integrate more automation and AI into our ad stack to enable faster adoption of new features, ensure advertisers are set up to get the best performance from Reddit ads, and increase the productivity and impact of our sales team. Reddit Max launched to beta in early Q1, and we're seeing strong adoption and performance outcomes for converting mid and lower funnel advertisers.

In Q1, we saw strength across most of our top verticals, particularly retail CPG, tech, and media and entertainment. While the number of active advertisers on the platform grew more than 75% year-over-year.

Now, I'll discuss the progress in our ad stack and road map, where our investments are measurable, and our strategy is to make all businesses successful on Reddit by delivering Market competitive outcomes around objectives.

Speaker #4: On average, advertisers are seeing a 17% reduction in cost per action and 25% more conversion outcomes when running Max campaigns. Advertisers are also increasingly adopting AI in their campaign setups, with about 50% of Max campaign advertisers using AI-powered creative features to unlock even stronger performance.

We're executing the strategy across 3 areas. Number 1 scaling on automation through our ads platform and read at Max. Number 2, delivering Advertiser value across all objectives. Number 3, expanding the Reddit for business ecosystem.

Speaker #4: For example, modern furniture and rug company Cozy launched a Max campaign utilizing AI-driven targeting, automated bidding, and creative rotation to scale customer acquisition with fewer manual inputs.

Jennifer Wong: On average, advertisers are seeing a 17% reduction in cost per action and 25% more conversion outcomes when running Max campaigns. Advertisers are also increasingly adopting AI in their campaign setups, with about 50% of Max campaign advertisers using AI-powered creative features to unlock even stronger performance. For example, modern furniture and rug company, Cozey, launched a Max campaign utilizing AI-driven targeting, automated bidding, and creative rotation to scale customer acquisition with fewer manual inputs. Max quickly became one of their most efficient levers for acquiring new customers, delivering 35% higher ROAS and 28% lower CPA, while saving the team approximately 2 to 3 hours per week on setup and optimization. Now moving to our progress across all marketing objectives. With our reach of nearly half a billion weekly users, Reddit delivers strong outcomes for brand advertisers.

Jen Wong: On average, advertisers are seeing a 17% reduction in cost per action and 25% more conversion outcomes when running Max campaigns. Advertisers are also increasingly adopting AI in their campaign setups, with about 50% of Max campaign advertisers using AI-powered creative features to unlock even stronger performance. For example, modern furniture and rug company, Cozey, launched a Max campaign utilizing AI-driven targeting, automated bidding, and creative rotation to scale customer acquisition with fewer manual inputs. Max quickly became one of their most efficient levers for acquiring new customers, delivering 35% higher ROAS and 28% lower CPA, while saving the team approximately 2 to 3 hours per week on setup and optimization. Now moving to our progress across all marketing objectives. With our reach of nearly half a billion weekly users, Reddit delivers strong outcomes for brand advertisers.

Speaker #4: Max quickly became one of their most efficient levers for acquiring new customers. Delivering 35% higher ROAS and 28% lower CPA, while saving the team approximately two to three hours per week on setup and optimization.

Now starting with automation our strategy is to integrate more Automation and AI into our ad stack to enable faster adoption of new features. Ensure advertisers are set up to get the best performance from Reddit ads and increase the productivity and impact of our sales team. Reddit Max launched 2 Beta in early q1 and we're seeing strong adoption in performance outcomes for converting mid and lower funnel. Advertisers on average advertisers are seeing a 17% reduction in cost per action and 25% more conversion outcomes. When running Max campaigns,

Speaker #4: Now moving to our progress across all marketing objectives. With our reach of nearly half a billion weekly users, Reddit delivers strong outcomes for brand advertisers.

Speaker #4: In the upper funnel, brand auto-bidding is now available to all advertisers, which dynamically adjusts bids enabling advertisers to spend more efficiently and simplifying campaign management.

Advertisers are also increasingly adopting AI in their campaign setups with about 50% of Max campaign, advertisers using AI powered creative features to unlock even stronger performance.

Speaker #4: Our test show an average 16% pricing improvement when advertisers adopt auto-bidding. And in the lower funnel, our investments in machine learning, signals, and optimization are continuing to deliver performance and efficiency for advertisers.

Speaker #4: In Q1, we doubled the number of conversions delivered for advertisers across the platform versus last year. Which means advertisers benefit from more conversions on their ad spend at lower cost per action, reflecting the efficiency and performance of our ads platform.

For example modern furniture and rug company cozy launched a Max campaign utilizing AI driven targeting automated bidding and creative rotation to scale, customer acquisition with fewer manual. Inputs Max quickly became 1 of their most efficient levers for acquiring new customers, delivering 30%, higher row, as and 28 lower CPA while saving the team approximately 2 to 3 hours per week on setup and optimization.

Jennifer Wong: In the upper funnel, brand auto bidding is now available to all advertisers, which dynamically adjusts bids, enabling advertisers to spend more efficiently and simplifying campaign management. Our tests show an average 16% pricing improvement when advertisers adopt auto bidding. In the lower funnel, our investments in machine learning, signals, and optimization are continuing to deliver performance and efficiency for advertisers. In Q1, we doubled the number of conversions delivered for advertisers across the platform versus last year, which means advertisers benefit from more conversions on their ad spend at lower cost per action, reflecting the efficiency and performance of our ads platform. Now, as I mentioned earlier, Reddit is deeply ingrained in the consumer shopping experience, and we saw the momentum continue with 40% year-over-year growth in high intent shopping conversations last year. Our shopping products help businesses capture that intent more effectively.

Jen Wong: In the upper funnel, brand auto bidding is now available to all advertisers, which dynamically adjusts bids, enabling advertisers to spend more efficiently and simplifying campaign management. Our tests show an average 16% pricing improvement when advertisers adopt auto bidding. In the lower funnel, our investments in machine learning, signals, and optimization are continuing to deliver performance and efficiency for advertisers. In Q1, we doubled the number of conversions delivered for advertisers across the platform versus last year, which means advertisers benefit from more conversions on their ad spend at lower cost per action, reflecting the efficiency and performance of our ads platform. Now, as I mentioned earlier, Reddit is deeply ingrained in the consumer shopping experience, and we saw the momentum continue with 40% year-over-year growth in high intent shopping conversations last year. Our shopping products help businesses capture that intent more effectively.

Speaker #4: As I mentioned earlier, Reddit is deeply ingrained in the consumer shopping experience, and we saw the momentum continue with 40% year over year growth in high-intent shopping conversations last year.

Now, moving to our progress across all marketing objectives with our reach of nearly half a billion weekly users Reddit delivery, strong outcomes for brand advertisers in the upper funnel brand. Auto bidding is now available to all advertisers, which dynamically adjust bids enabling, advertisers to spend more efficiently and simplifying campaign management. Our tests show an average 16% pricing Improvement, when advertisers adopt auto bidding

Speaker #4: Our shopping products help businesses capture that intent more effectively. And with dynamic product ads, or DPA, we're improving relevance and ad formats to drive stronger performance in advertiser value.

and in the lower funnel, our investments, in machine learning signals and optimization are continuing to deliver performance and efficiency for advertisers

Speaker #4: Reaching investments in DPA delivered more than 90% higher ROAS year over year on average, and brands, including the health and wellness company Liquid IV, saw Reddit's DPAs outperform their conversion other conversion campaigns by 40%.

In Q1, we doubled the number of conversions delivered for advertisers across the platform versus last year, which means advertisers benefit from more conversions on their ad spend at lower cost per action, reflecting the efficiency and performance of our ads platform.

Speaker #4: We're building on the progress with new shopping ad formats designed to improve discovery and conversion, including collection ads and Reddit unique overlays such as Redditor's Top Pick that capture the perspectives of Reddit's communities for specific products.

Jennifer Wong: With Dynamic Product Ads, or DPA, we're improving relevance in ad formats to drive stronger performance and advertiser value. Recent investments in DPA delivered more than 90% higher ROAS year over year on average, and brands, including the health and wellness company, Liquid I.V., saw Reddit CPAs outperform their conversion, other conversion campaigns by 40%. We're building on the progress with new shopping ad formats designed to improve discovery and conversion, including Collection Ads and Reddit unique overlays such as Redditers' Top Pick that capture the perspectives of Reddit's communities for specific products. Lastly, I'll touch on our strategy to build an ecosystem of partners around Reddit. At Shoptalk in March, we announced an integration with Shopify that strengthens our retail and e-commerce partnership ecosystem.

Jen Wong: With Dynamic Product Ads, or DPA, we're improving relevance in ad formats to drive stronger performance and advertiser value. Recent investments in DPA delivered more than 90% higher ROAS year-over-year on average, and brands, including the health and wellness company, Liquid I.V., saw Reddit CPAs outperform their conversion, other conversion campaigns by 40%. We're building on the progress with new shopping ad formats designed to improve discovery and conversion, including Collection Ads and Reddit unique overlays such as Redditers' Top Pick that capture the perspectives of Reddit's communities for specific products. Lastly, I'll touch on our strategy to build an ecosystem of partners around Reddit. At Shoptalk in March, we announced an integration with Shopify that strengthens our retail and e-commerce partnership ecosystem.

Speaker #4: And lastly, I'll touch on our strategy to build an ecosystem of partners around Reddit. At ShopTalk in March, we announced an integration with Shopify that strengthens our retail and e-commerce partnership ecosystem.

As I mentioned earlier, Reddit is deeply ingrained in the consumer's shopping experience and we saw the momentum continue with 40% year-over-year. Growth in high, intense shopping conversations last year, our shopping products, help businesses capture that intent more effectively, and with Dynamic product, ads or DPA, or improving relevance, and AD formats to drive stronger performance, and Advertiser value.

Speaker #4: The integration expands our reach to advertisers and makes it easier for them to set up and scale lower-funnel campaigns on Reddit. The integration is early and in the process of ramping, we're excited about how this can build a deeper presence with mid-market and SMBs.

Ringing the investments in DPA delivered more than 90% higher ROAS year-over-year on average, and brands, including the health and wellness company Liquid I.V., saw Reddit's DPAs outperform their other conversion campaigns by 40%.

Speaker #4: As we scale performance advertising on Reddit, third-party measurement partners are important for validating our impact. In its latest retail commerce study, FOSFA found that Reddit improved cost per purchase by 34% while increasing ROAS and helping advertisers scale spend by 2.5 times year over year.

Including collection ads and Reddit-unique overlays, such as redditors and top picks, that capture the perspectives of Reddit's communities for specific products.

Jennifer Wong: The integration expands our reach to advertisers and makes it easier for them to set up and scale lower funnel campaigns on Reddit. The integration is early and in the process of ramping. We're excited about how this can build a deeper presence with mid-market and SMBs. As we scale performance advertising on Reddit, third-party measurement partners are important for validating our impact. In its latest retail commerce study, Fospha found that Reddit improved cost per purchase by 34% while increasing ROAS and helping advertisers scale spend by 2.5 times year over year. We have seen growing adoption of Reddit Pro since expanding access to all publishers, giving them self-serve tools to auto import articles, receive AI-powered community recommendations on where to share them, and measure the reach and engagement of their content on Reddit.

Jen Wong: The integration expands our reach to advertisers and makes it easier for them to set up and scale lower funnel campaigns on Reddit. The integration is early and in the process of ramping. We're excited about how this can build a deeper presence with mid-market and SMBs. As we scale performance advertising on Reddit, third-party measurement partners are important for validating our impact. In its latest retail commerce study, Fospha found that Reddit improved cost per purchase by 34% while increasing ROAS and helping advertisers scale spend by 2.5 times year-over-year. We have seen growing adoption of Reddit Pro since expanding access to all publishers, giving them self-serve tools to auto import articles, receive AI-powered community recommendations on where to share them, and measure the reach and engagement of their content on Reddit.

Speaker #4: We have seen growing adoption of Reddit Pro since expanding access to all publishers, giving them self-serve tools into auto-import articles, receive AI-powered community recommendations on where to share them, and measure the reach and engagement of their content on Reddit.

Speaker #4: Publishers ranging from global outlets to local press like Fortune Media to the SF Chronicle and Dallas Morning News and sports brands like Arsenal FC are now using Reddit Pro.

And lastly, I'll touch on our strategy to build an ecosystem of Partners around Reddit at shop talk in March, we announced an integration with Shopify that strengthens our retail and e-commerce partnership ecosystem, the integration, expands our reach to advertisers and makes it easier for them to set up and scale lower funnel campaigns. On Reddit, the integration is early. And in the process of ramping, we're excited about how this can build a deeper presence with mid-market and smbs.

Speaker #4: Overall, there's a lot to be excited about this year. In every day, we see more businesses coming to Reddit to connect with their audience and grow their business.

Speaker #4: And as the pace of change in the market grows, Reddit's fundamental assets and value proposition, built on authenticity, trust, and high intent, keep us exceptionally well-positioned.

As we scale performance advertising on Reddit, third-party measurement, partners are important for validating our impact in its latest retail, Commerce study fosa found that Reddit improved cost per purchase by 34% while increasing roas and helping advertisers scale, spend by 2.5 times year over year.

Speaker #4: Thank you for joining us and for your continued support. Now I'll turn the call over to Drew.

Speaker #5: Thank you, Jen, and good afternoon, everyone. The financial headline for Q1 was that Reddit's results stand alone in a very positive way. Reddit continues to scale quickly, generating cash flow and profitability results that few companies can match at this scale.

Jennifer Wong: Publishers ranging from global outlets to local press like Fortune Media to the San Francisco Chronicle and The Dallas Morning News, and sports brands like Arsenal FC are now using Reddit Pro. Overall, there's a lot to be excited about this year. Every day we see more businesses coming to Reddit to connect with their audience and grow their business. As the pace of change in the market grows, Reddit's fundamental assets and value proposition built on authenticity, trust, and high intent keep us exceptionally well-positioned. Thank you for joining us and for your continued support. Now I'll turn the call over to Drew.

Jen Wong: Publishers ranging from global outlets to local press like Fortune Media to the San Francisco Chronicle and The Dallas Morning News, and sports brands like Arsenal FC are now using Reddit Pro. Overall, there's a lot to be excited about this year. Every day we see more businesses coming to Reddit to connect with their audience and grow their business. As the pace of change in the market grows, Reddit's fundamental assets and value proposition built on authenticity, trust, and high intent keep us exceptionally well-positioned. Thank you for joining us and for your continued support. Now I'll turn the call over to Drew.

We have seen growing adoption of Reddit Pro since expanding access to all Publishers, giving them self-serve tools into Auto Import articles to Auto Import articles, receive AI, powered Community recommendations on where to share them and measure the reach and engagement of their content on Reddit Publishers. Ranging from Global Outlets to local press like Fortune media to the SF Chronicle and Dallas Morning News and sports brands like Arsenal FC are now using Reddit Pro.

Speaker #5: Specifically, Reddit's Q1 47% free cash flow margin was a powerful proof point to superior cash flow generation. While Reddit's earnings power was evident in two financial milestone achievements.

Overall, there's a lot to be excited about this year and every day we see more businesses coming to Reddit to connect with their audience and grow their business.

Speaker #5: On a gap basis, EPS reached triple digits in Q1, at $1.01 a share, up more than seven times from last year. And on a non-gap basis, Reddit achieved a 40% adjusted EBITDA margin in Q1, up almost 1,100 basis points from last year, a similar signal of strength and differentiation.

Drew Vollero: Thank you, Jen, and good afternoon, everyone. The financial headline for Q1 was that Reddit's results stand alone in a very positive way. Reddit continues to scale quickly, generating cash flow and profitability results that few companies can match at this scale. Specifically, Reddit's Q1 47% free cash flow margin was a powerful proof point to superior cash flow generation, while Reddit's earnings power was evident in two financial milestone achievements. On a GAAP basis, EPS reached triple digits in Q1 at $1.01 a share, up more than 7 times from last year. On a non-GAAP basis, Reddit achieved a 40% adjusted EBITDA margin in Q1, up almost 1,100 basis points from last year, a similar signal of strength and differentiation. This strong start's encouraging, particularly since historically, seasonality has contributed to making Q1 our slowest quarter of the year.

And as the pace of change in the market grows, we're at its fundamental assets and value proposition built on authenticity trust and high intent. Keep us exceptionally. Well positioned, thank you for joining us and for your continued support. Now I'll turn the call over to Drew. Thank you Jan, and good afternoon everyone.

The financial headline for q1 was that reddit's results, stand alone in a very positive way. Reit continues to scale. Quickly, generating cash flow and profitability results that few companies can match at this scale.

Speaker #5: The strong start's encouraging. Particularly since historically, seasonality has contributed to making Q1 our slowest quarter of the year. I'll now provide more color on our Q1 results.

Speaker #5: Q1 revenues of $663 million grew 69% year over year, driven by a ramp in ad revenue which grew 74% year over year, to $625 million as we saw a strong advertising demand across the funnel.

Specifically, Reddit's Q1 47% free cash flow margin was a powerful proof point to superior cash flow generation, while Reddit's earnings power was evident in two financial milestones.

Speaker #5: It's our seventh consecutive quarter by growing more than 60%. Other revenue, which included revenue from our content licensing business, reached $39 million, up 15% year over year.

On a gap basis. EPS reached triple digits in q1 at A1 Cent a share more than 7 times from last year and on a non-gaap basis, right? Of the chief of the 40% adjusted ibaa margin in. Q1 up almost 1100 basis points from last year, a similar signal of strength and differentiation

This strong starts encouraging.

Speaker #5: US revenues were up 67%, international revenues were up 76%. Average revenue per user, RPU, grew 44% year over year, to $5.23. Moving to expenses, our Q1 total adjusted costs which included both adjusted cost of revenue and adjusted OPEX were $397 million in Q1, up 43% year over year, but sequentially lower in Q4.

Drew Vollero: I'll now provide more color on our Q1 results. Q1 revenues of $663 million grew 69% year over year, driven by a ramp in ad revenue, which grew 74% year over year to $625 million, as we saw strong advertising demand across the funnel. It's our seventh consecutive quarter by growing more than 60%. Other revenue, which included revenue from our content licensing business, reached $39 million, up 15% year over year. US revenues were up 67%. International revenues were up 76%. Average revenue per user, ARPU, grew 44% year over year to $5.23. Moving to expenses, our Q1 total adjusted costs, which included both adjusted cost of revenue and adjusted OpEx, were $397 million in Q1, up 43% year over year, but sequentially lower than Q4.

Drew Vollero: I'll now provide more color on our Q1 results. Q1 revenues of $663 million grew 69% year-over-year, driven by a ramp in ad revenue, which grew 74% year-over-year to $625 million, as we saw strong advertising demand across the funnel. It's our seventh consecutive quarter by growing more than 60%. Other revenue, which included revenue from our content licensing business, reached $39 million, up 15% year-over-year. US revenues were up 67%. International revenues were up 76%. Average revenue per user, ARPU, grew 44% year-over-year to $5.23. Moving to expenses, our Q1 total adjusted costs, which included both adjusted cost of revenue and adjusted OpEx, were $397 million in Q1, up 43% year-over-year, but sequentially lower than Q4.

Particularly, since historically, seasonality has contributed to making q1, our slowest quarter of the year.

I'll now provide more color on our q1 results.

Q1 revenues of 663 million grew 69% year-over-year driven by a rampant ad Revenue, which grew 74% year-over-year to 625 million. As we saw strong, advertising, demand across the funnel.

It's our seventh consecutive quarter by growing more than 60%.

Speaker #5: Working our way down the income statement, gross margins were 91.5%, up 97 basis points year over year, our seventh consecutive quarter over 90%. Incremental revenues and hosting efficiencies helped to offset increases in cost of revenue.

Other Revenue, which included revenue from our content licensing. Business reached 39 million up to 15% year-over-year.

Revenue revenues were up. 67% International revenues were up 76%.

Speaker #5: Which was $56 million in the quarter, up 52% year over year. Those cost of revenue increases reflect volume growth in users and ads served, more ML usage, and more international investments in speed and reliability.

Average. Revenue per user are Pooh grew 44% year-over-year to 5.23

Speaker #5: Operating expenses remain the bigger piece of our expense composition, which on an adjusted basis were $341 million in Q1, or about $51% of revenue, down from $61% of revenue last year.

Drew Vollero: Working our way down the inc statement, gross margins were 91.5%, up 97 basis points year over year, our seventh consecutive quarter over 90%. Incremental revenues and hosting efficiencies helped to offset increases in cost of revenue, which was $56 million in Q1, up 52% year over year. Those cost of revenue increases reflect volume growth in users and ads served, more ML usage, and more international investments in speed and reliability. Operating expenses remain the bigger piece of our expense composition, which on an adjusted basis were $341 million in Q1, or about 51% of revenue, down from 61% of revenue last year, as we gain operating leverage across the business. For Q1, adjusted operating expenses were about flat sequentially, did grow 42% year over year, slightly elevated from last quarter.

Drew Vollero: Working our way down the inc statement, gross margins were 91.5%, up 97 basis points year-over-year, our seventh consecutive quarter over 90%. Incremental revenues and hosting efficiencies helped to offset increases in cost of revenue, which was $56 million in Q1, up 52% year-over-year. Those cost of revenue increases reflect volume growth in users and ads served, more ML usage, and more international investments in speed and reliability. Operating expenses remain the bigger piece of our expense composition, which on an adjusted basis were $341 million in Q1, or about 51% of revenue, down from 61% of revenue last year, as we gain operating leverage across the business. For Q1, adjusted operating expenses were about flat sequentially, did grow 42% year-over-year, slightly elevated from last quarter.

Moving to expenses, Q1 total adjusted costs—which included both adjusted cost of revenue and adjusted opex—were $397 million in Q1, up 43% year-over-year, but sequentially lower than in Q4.

Speaker #5: As we gain operating leverage across the business, for Q1 adjusted operating expenses were about flat 42% year over year, slightly elevated from last quarter.

Working our way down the income statement. Gross margins were 91.5%, up 97 basis points year-over-year—our seventh consecutive quarter over 90%.

Speaker #5: These year-over-year increases continue to be driven by investments in two key areas: hiring and marketing. On hiring, we added about $32 net people in Q1, up 12% from last year, and up about 1% sequentially from Q4.

Incremental revenues and hosting efficiencies helped to offset increases in cost of Revenue, which was 56 million in the quarter up 52% year-over-year.

Increases reflect volume growth and users and ads, served more ml usage and more International investments in speed and reliability.

Speaker #5: We're selectively hiring talent in key revenue and consumer functions like sales, ad tech, and ML engineering. The returns from our investments in these areas are measurable and multiples of the cost within a short period of time.

Operating expenses, Remain the bigger piece of our expense composition, which on an adjusted basis were 341 million q1 or about 51% of Revenue down from 61% of Revenue last year as we gain operating leverage across the business.

Speaker #5: Second, on marketing, our spend was primarily in the US, where we prioritized both paid and brand strategies to expand awareness and drive traffic. Total marketing costs in Q1 were in the mid-single digits as a percentage of revenue, but were lower nominally and as a percentage of revenue from Q4 as we benefited from lower seasonal ad pricing in Q1.

Drew Vollero: These year-over-year increases continue to be driven by investments in two key areas, hiring and marketing. On hiring, we added about 32 net people in Q1, up 12% from last year and up about 1% sequentially from Q4. We're selectively hiring talent in key revenue and consumer functions like sales, ad tech, and ML engineering. The returns from our investments in these areas are measurable and multiples of the cost within a short period of time. Second, on marketing, our spend was primarily in the US, where we prioritized both paid and brand strategies to expand awareness and drive traffic. Total marketing costs in Q1 were in the mid-single digits as a percentage of revenue, but were lower nominally and as a percentage of revenue from Q4, as we benefited from lower seasonal ad pricing in Q1.

For q1 adjusted operating expenses. Were about flat sequentially but did grow 42% year-over-year slightly elevated from last quarter?

These year-over-year increases continue to be driven by investments in 2 key areas, hiring and marketing.

And up about 1% sequentially from Q4.

Speaker #5: Overall, user retention remains an opportunity and an important unlocker to improving investment returns and marketing. Our third major cost is stock compensation and dilution.

Where selectively hiring talent and key revenue and consumer functions like sales, adtech, and ml engineering.

Speaker #5: Which remains a positive story. Stock-based compensation and related tax expense was $79 million, or 12% of revenue in Q1, and down sequentially from Q4.

The returns from our investments in these areas are measurable and multiples of the cost within a short period of time.

Second, on marketing, our spend was primarily in the US, where we prioritize both paid and brand strategies to expand awareness and drive traffic.

Speaker #5: Similarly, dilution remains modest. Total fully diluted shares outstanding was $206.4 million, up 0.1% sequentially and up 0.2% year over year. The modest share growth in the quarter reflects the continued tight management of our equity spend.

Drew Vollero: Overall, user retention remains an opportunity and an important unlocker to improving investment returns in marketing. Our third major cost is stock compensation and dilution, which remains a positive story. Stock-based compensation and related tax expense was $79 million or 12% of revenue in Q1 and down sequentially from Q4. Similarly, dilution remains modest. Total fully diluted shares outstanding was 206.4 million, up 0.1% sequentially and up 0.2% year over year. The modest share growth in the quarter reflects the continued tight management of our equity spend. For Q1, there was a slight tailwind for dilution for share repurchase activity, although share repurchase activity was modest in the quarter, about 35,000 shares, and about $995 million remains on our billion-dollar authorization from February. A few more financial points of interest.

Drew Vollero: Overall, user retention remains an opportunity and an important unlocker to improving investment returns in marketing. Our third major cost is stock compensation and dilution, which remains a positive story. Stock-based compensation and related tax expense was $79 million or 12% of revenue in Q1 and down sequentially from Q4. Similarly, dilution remains modest. Total fully diluted shares outstanding was 206.4 million, up 0.1% sequentially and up 0.2% year-over-year. The modest share growth in the quarter reflects the continued tight management of our equity spend. For Q1, there was a slight tailwind for dilution for share repurchase activity, although share repurchase activity was modest in the quarter, about 35,000 shares, and about $995 million remains on our billion-dollar authorization from February. A few more financial points of interest.

Total marketing costs and q1. Where in the mid single digits is a percentage of Revenue, but we're lower nominally, and it's a percentage of revenue from Q4 as we benefited from low lower seasonal, add pricing in q1

Speaker #5: For Q1, there was a slight tailwind for dilution for share repurchase activity, although share repurchase activity was modest in the quarter, about 35,000 shares, and about 995 million remains on our billion-dollar authorization from February.

Overall user retention remains an opportunity and an important unlocker to improving investment returns and marketing.

Our third major cost is comp stock, compensation and solution, which remains a positive story.

Speaker #5: A few more financial points of interest: the business remains capital light, CAPEX was $1 million, 0.2% of revenue. Net income was $204 million, $1.07 per basic share, and $1.01 per diluted share, up more than seven times the $0.14 and $0.13 last year, respectively.

Stock-based compensation and related tax expense was $79 million, or 12% of revenue, in Q1 and down sequentially from Q4.

Similarly, dilution remains modest total fully diluted shares. Outstanding was 206.4. Million up, 0.1% sequentially, and up 0.2% year-over-year.

Speaker #5: We ended Q1 with $2.8 billion in cash and investments, and we're well positioned to deploy capital across our three priorities, including investing in the core business, M&A, and share repurchases.

the modest share growth in the quarter, reflects the continued type management of our Equity spend

Speaker #5: Now turning to the outlook, we'll share our internal thoughts on revenue-adjusted EBITDA for the second quarter. In the second quarter of 2026, we estimate revenue in the range of $715 to $725 million, representing 43% to 45% year-over-year revenue growth, with a midpoint of about 44.

For q1, there was a slight Tailwind for dilution for share repurchase activity. Although share repurchase activity was modest in the quarter about 35,000 shares and about 995 million remains on our billion dollar authorization from February.

Drew Vollero: The bus-business remains capital light. CapEx was $1 million, 0.2% of revenue. Net income was $204 million, $1.07 per basic share and $1.01 per diluted share, up more than 7 times the $0.14 and $0.13 last year, respectively. We ended Q1 with $2.8 billion in cash and investments, and we're well-positioned to deploy capital across our three priorities, including investing in the core business, M&A, and share repurchases. Now turning to the outlook, we'll share our internal thoughts on revenue adjusted EBITDA for Q2. In Q2 of 2026, we estimate revenue in the range of $715 to 725 million, representing 43% to 45% year over year revenue growth with a midpoint of about 44%.

Drew Vollero: The bus-business remains capital light. CapEx was $1 million, 0.2% of revenue. Net income was $204 million, $1.07 per basic share and $1.01 per diluted share, up more than 7 times the $0.14 and $0.13 last year, respectively. We ended Q1 with $2.8 billion in cash and investments, and we're well-positioned to deploy capital across our three priorities, including investing in the core business, M&A, and share repurchases. Now turning to the outlook, we'll share our internal thoughts on revenue adjusted EBITDA for Q2. In Q2 of 2026, we estimate revenue in the range of $715 to 725 million, representing 43% to 45% year-over-year revenue growth with a midpoint of about 44%.

A few more financial points of interest that b business remains Capital light capex, was 1 million 0.2% of Revenue.

Speaker #5: Our Q2 revenue guide considers the strong growth and momentum in the business as we exit in Q1. And takes into account the lapping of a particularly strong growth period in Q2 2025, where total revenues grew 78% and ad revenue grew 84%.

Net income was 204 million dollar 7 per basic share and a dollar 1 per diluted share up more than 7 times the 14 cents and 13 cents last year respectively.

We ended a q1 with 2.8 billion in cash and Investments and we're well positioned to deploy Capital across our 3 priorities, including investing in the core business, m&a and share repurchases.

Speaker #5: Moving to adjusted EBITDA, we expect Q2 adjusted EBITDA to be in the range of $285 million to $295 million, representing approximately 71 to 77% year-over-year growth, and an adjusted EBITDA margin of 40% at the midpoint.

Now turning to the Outlook, we'll share our internal thoughts on Revenue, adjusted ibid do for the second quarter.

Speaker #5: The Q2 guide assumes a total adjusted cost basis of $430 million, which implies a growth rate of approximately 29% year over year, which is lower than prior quarters as we begin to lap our investments in sales and marketing, which started in Q2 of 2025.

Drew Vollero: Our Q2 revenue guide considers the strong growth and momentum in the business as we exited Q1 and takes into account the lapping of a particularly strong growth period in Q2 2025, where total revenues grew 78% and ad revenue grew 84%. Moving to adjusted EBITDA, we expect Q2 adjusted EBITDA to be in the range of $285 million to $295 million, representing approximately 71% to 77% year over year growth and an adjusted EBITDA margin of 40% at the midpoint. The Q2 guide assumes a total adjusted cost basis of $430 million, which implies a growth rate of approximately 29% year over year, which is lower than prior quarters as we begin to lap our investments in sales and marketing, which started in Q2 of 2025.

Drew Vollero: Our Q2 revenue guide considers the strong growth and momentum in the business as we exited Q1 and takes into account the lapping of a particularly strong growth period in Q2 2025, where total revenues grew 78% and ad revenue grew 84%. Moving to adjusted EBITDA, we expect Q2 adjusted EBITDA to be in the range of $285 million to $295 million, representing approximately 71% to 77% year-over-year growth and an adjusted EBITDA margin of 40% at the midpoint. The Q2 guide assumes a total adjusted cost basis of $430 million, which implies a growth rate of approximately 29% year-over-year, which is lower than prior quarters as we begin to lap our investments in sales and marketing, which started in Q2 of 2025.

In the second quarter of 2026, we estimate revenue in the range of $715 to $725 million, representing 43% to 45% year-over-year revenue growth, with a midpoint of about 44%.

Speaker #5: I'd also like to make a couple of other points. We anticipate our Q2 stock-based compensation-related tax expense to be sequentially higher than Q1, driven by increased hiring and the timing of our annual stock refresh grant.

Our Q2 Revenue guide, considers the strong growth of momentum in the business as we exit in q1 and takes into account. The lapping of a particularly strong growth period in Q2 2025 where total revenues grew 78% and add Revenue grew 84%.

Speaker #5: Which happens mid-second quarter. That said, for the quarter, we expect to see good cost leverage on SBC expenses, with our internal estimates showing that year-over-year stock-based comp expense could grow about half the rate of revenue for the quarter.

Moving to adjusted evida. We expect Q2 adjusted evida to be in the range of 285 million to 295 million representing approximately 71 to 77% year-over-year growth and in the adjusted. Eva margin of 40% at the midpoint.

Speaker #5: Also, as we mentioned, our Q4 call, Q2 2026, will be the last period we disclose logged in and logged out DAUQ metrics. Beginning in Q3 2026, our user disclosures will continue to include US and international DAUQ and WAUQ, as we've done historically.

Drew Vollero: I'd also like to make a couple of other points. We anticipate our Q2 stock-based compensation-related tax expense to be sequentially higher than Q1, driven by increased hiring and the timing of our annual stock refresh grant, which happens mid-Q2. That said, for the quarter, we expect to see good cost leverage on SBC expenses with our internal estimates showing that year-over-year stock-based comp expenses could grow about half the rate of revenue for the quarter. As we mentioned in our Q4 call, Q2 2026 will be the last period we disclose logged in and logged out DAUQ metrics. Beginning in Q3 2026, our user disclosures will continue to include U.S. and international DAUQ and WAUQ as we've done historically. To summarize, strong fundamentals matter, and Reddit's financial model is scaling in a very positive way.

The Q2 guide assumes a total adjusted cost basis of 430 million which implies a growth rate of approximately 29% year-over-year, which is lower than prior quarters. As we begin to lap our investments in sales and marketing which started in Q2 of 2025.

I'd also like to make a couple of other points.

Speaker #5: So, to summarize, strong fundamentals matter. And Reddit's financial model is way. Reddit's becoming a leader—a leader in growth, a leader in profitability, and a leader in cash flow margin.

Speaker #5: We're off to a strong financial start in 2026. Reddit's raw materials position us well for growth, and our advantaged financial model is turning top-line gains into meaningful increases in cash and profitability.

We anticipate our Q2 stock-based compensation related tax expense, to be sequentially higher than q1 driven by increased hiring and the time the timing of our annual stock refresh Grant which happens mid second. Quarter that said for the quarter, we expect to see Good Cost leverage on SBC expenses with our internal estimates, showing that year-over-year stock based complex sense. Expenses could grow about half the rate of revenue for the quarter.

Speaker #5: That concludes my comments, so let me turn the call back over to the operator.

Speaker #1: Thank you. We will now begin the question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue.

Also, as we mentioned, our Q4 call Q2 2026 will be the last period we disclose logged in and logged out Dau, metrics, beginning in Q3 2026, our user disclosures will continue to include us and international Dau and waq as we've done historically.

Drew Vollero: Reddit's becoming a leader, a leader in growth, a leader in profitability, and a leader in cash flow margin. We're off to a strong financial start in 2026. Reddit's raw materials position us well for growth, and our advantage financial model is turning top-line gains into meaningful increases in cash and profitability. That concludes my comments, so let me turn the call back over to the operator.

Speaker #1: And if you'd like to withdraw that question, again, press star one. We kindly ask that you limit yourself to one question. For any additional questions, please requeue.

So to summarize, strong fundamentals matter and reddit's financial model is scaling in a very positive way reddit's, becoming a leader, a leader in growth, a leader in profitability and a leader in cash flow margin.

Speaker #1: And your first question comes from Doug Anmuth with JPMorgan. Please go ahead.

Speaker #3: Thanks so much for taking the questions. One for Steve and one for Jen. Steve, can you just talk about the work you have to do on the user side to increase frequency and accelerate growth, and what you think will be most impactful over the next then Jen, on DPAs, you announced a number of shopping tools to enhance DPAs.

We're off to a strong financial start in 2026, read its raw materials position us. Well for growth in our advantage, financial model is turning Topline gains into meaningful increases in cash and profitability.

Operator: Thank you. We will now begin the question and answer session. We kindly ask that you limit yourself to one question. For any additional questions, please re-queue. Your first question comes from Doug Anmuth with J.P. Morgan. Please go ahead.

That concludes my comments. So, let me turn the call back over to the operator.

Speaker #3: Can you just help us understand how you're thinking about current adoption and the progress you're seeing with that format? Thanks.

Speaker #4: Sure. Thanks, Doug. Okay. On the user side, we've seen some progress in the quarter that we're happy with: improvements in onboarding. We had a couple of 100%.

Doug Anmuth: Thanks so much for taking questions. One for Steve and one for Jen. Steve, can you just talk about the work you had to do on the user side to increase frequency and accelerate growth and what you think will be most impactful over the next several quarters? Jen, on DPAs, you announced a number of shopping tools to enhance DPAs. Can you just help us understand how you're thinking about current adoption and the progress you're seeing with that format? Thanks.

And if you'd like to withdraw that question, again, press star 1. We kindly ask that you limit yourself to one question. For any additional questions, please reach out. And your first question comes from Doug Anmuth with J.P. Morgan. Please go ahead.

Speaker #4: Some contribution from feeds as well. I think as we look over the rest of the year, the biggest drivers will probably be performance, so just the kind of pure speed of both iOS and Android.

Speaker #4: I still think there's a lot to do on onboarding. And I think the biggest driver long-term will be the feed. And so, hence, the kind of focus on ML talent for us right now.

Steve Huffman: Sure. Thanks, Doug. On the user side, we've seen some progress in the quarter that we're happy with, improvements in onboarding. We had a couple experiments do well, ramped up to 100%, some contribution from feeds as well. I think as we look over the rest of the year, the biggest drivers will probably be performance. Just the kind of pure speed of both iOS and Android. I still think there's a lot to do on onboarding, and I think the biggest driver long term will be the feed hence the kind of focus on ML talent for us right now. I think all of this is in alignment with what we've talked about for a long time, which is make the core product work better.

Thanks so much for taking questions. Um 1 for Stephen 1 for Jen. Uh, Steve, can you just talk about the work you have to do on the user side to increase frequency and accelerate growth and what you think will be most impactful over uh the next several quarters and then, um, Jen on dpas you announced a number of, um, shopping tools to enhance CPA's. Um, can you just help us understand uh how you're thinking about current adoption and and the progress you're seeing with that format? Thanks?

Sure. Thanks Doug. Um,

On the user side.

Speaker #4: So I think all of this is in alignment with what we've talked about for a long time, which is make the core product work better.

Speaker #4: I will say over the—we've seen nice progress on search as well, which is itself a driver. SearchWAUQs are up 30% year over year. So I think solid progress there as well.

Speaker #4: The big-picture story here is we've been really focused on the team, the processes, the tech, upgrading all of those things over the last year.

Speaker #4: So I feel the foundation is better than what we've seen in the past to achieve these outcomes.

We've seen some progress in the quarter that we're happy with, uh, improvements in. Um, on boarding, we had a couple experiments to do well ramped up to 100%, um, some contribution from speeds as well. Um, I think, as we look, uh, over the rest of the year, the biggest drivers will probably be performance. So, just the the kind of pure speed of both IOS and Android. I still think there's a lot to do on on boarding and I think the biggest driver long term will be the feed. And so, hence the um, kind of focus on ML talent for us right now.

Speaker #5: I think the second one on DPA, look, we launched DPA a year ago, and this is in the world of ads, I'd say shopping is probably one of the more complicated products.

Steve Huffman: I will say over there, we've seen nice progress on search as well, which is itself a driver. Search WAUQs are up 30% year over year. I think solid progress there as well. The big picture story here is we've been really focused on the team, the processes, the tech, upgrading all of those things over the last year. I feel the foundation is better than what we've seen in the past to achieve these outcomes.

Steve Huffman: I will say over there, we've seen nice progress on search as well, which is itself a driver. Search WAUQs are up 30% year-over-year. I think solid progress there as well. The big picture story here is we've been really focused on the team, the processes, the tech, upgrading all of those things over the last year. I feel the foundation is better than what we've seen in the past to achieve these outcomes.

Speaker #5: And obviously, folks have been offering DPA for longer than we have. So there's a lot of headroom there. So I think improve our models and the onboarding process, etc.

Speaker #5: But I think the team has done a really good job in giving, I think, great ROAS improvements to our customers. With the Shopify and WooCommerce partnerships, I think that's an opportunity for us to acquire more sort of mid-market and SMB customers into DPA.

Jennifer Wong: The second one on DPA. Look, we launched DPA a year ago, this is, you know, in the world of ads, I'd say shopping is probably one of the more complicated products. Folks have been offering DPA for longer than we have. There's a lot of headroom there to, I think, improve our models and, you know, the onboarding process, et cetera. I, you know, I think the team has done a really good job in giving, I think, great real ads improvements to our customers. With the Shopify and WooCommerce partnerships, I think that's an opportunity for us to acquire more sort of mid-market and SMB customers into DPA. We're excited about that. Again, very early, but we're excited about that opportunity.

Jen Wong: The second one on DPA. Look, we launched DPA a year ago, this is, you know, in the world of ads, I'd say shopping is probably one of the more complicated products. Folks have been offering DPA for longer than we have. There's a lot of headroom there to, I think, improve our models and, you know, the onboarding process, et cetera. I, you know, I think the team has done a really good job in giving, I think, great real ads improvements to our customers. With the Shopify and WooCommerce partnerships, I think that's an opportunity for us to acquire more sort of mid-market and SMB customers into DPA. We're excited about that. Again, very early, but we're excited about that opportunity.

So, um, I think all of this is in alignment with what we've talked about for a long time, which is make the core product work better. Um, I will say over the uh we've seen nice progress on search as well, which is itself a driver, um search w w. Aww, Q's are up 30% year-over-year. Um, so uh, I think solid progress there as well, uh, the the big picture story here is we've been really focused on the team the processes, the tech upgrading all of those things over the last year. So I feel the foundation is better than what we've seen in the past to achieve these outcomes.

Speaker #5: So we're excited about that. Again, very early, but we're excited about that opportunity. And because right now, there's still thousands of advertisers that can adopt DPA that haven't adopted yet.

Speaker #5: I will say we're still early. We're very focused on retail and retail catalogs. In the future, that's still ahead of us. Folks use DPA for travel, for auto, for other categories that we haven't even focused on to date.

Speaker #5: So I think there's a long roadmap of opportunity here for us.

Speaker #3: Great.

Speaker #1: You are next. You are next question comes from the line of Josh Beck with Raymond James. Please go ahead.

Jennifer Wong: Because right now there's still thousands of advertisers that can adopt DPA that haven't adopted yet. I will say, you know, we're still early. We're very focused on retail and retail catalogs. You know, in the future, that's still ahead of us. Folks use DPA for travel, for auto, for other categories that we haven't even, you know, focused on to date. I think there's a long roadmap of opportunity here for us.

Speaker #3: Yeah. Thank you so much for taking the question. I wanted to maybe double-click on the ML talent Steve and maybe if you could kind of give us the short list of maybe some of the projects that the team is working on, what's most important this year.

Jen Wong: Because right now there's still thousands of advertisers that can adopt DPA that haven't adopted yet. I will say, you know, we're still early. We're very focused on retail and retail catalogs. You know, in the future, that's still ahead of us. Folks use DPA for travel, for auto, for other categories that we haven't even, you know, focused on to date. I think there's a long roadmap of opportunity here for us.

You think the second one on DTA? Um, look, we launched DTA a year ago, and this is, you know, in the world of ads, I'd say shopping is probably one of the more complicated products. And obviously, um, folks have been in— in offering VPA for longer than we have, so there's a lot of headroom there. So I think, improve our models and, you know, the onboarding process, etc. But I, you know, I think the team has done a really good job, in, um, giving, I think, great ROAS improvements to our customers. Um, with the Shopify and WooCommerce partnerships, I think that's an opportunity for us to acquire more sort of mid-market and SMB customers into DPA. So we're excited about that, again, very early, but we're excited about that opportunity. And because right now, there's still thousands of advertisers.

Speaker #3: And then also, just with respect to top-of-funnel, obviously, that's a goal for you all, just kind of curious what have been maybe some of the most successful strategies and kind of how you're thinking about driving more top-of-funnel as you move through the year.

Um, that can adopt EPA that haven't adopted yet. Um, I will say, you know, we're still early, we're very focused on retail and retail catalogs, you know, in the future that's still ahead of us. Folks use DPA for travel, for auto, for other categories that we haven't even, you know, focused on today. So I think there's a long roadmap of opportunity here for us.

Doug Anmuth: Great. Thank you.

Operator: Your next question comes from the line of Josh Beck with Raymond James. Please go ahead.

Great, you are next.

Your next question comes from the line of Josh Beck with Raymond James, please go ahead.

Josh Beck: Yes, thank you so much for taking the question. I wanted to maybe double-click on the ML talent, Steve, and maybe if you could kind of give us the short list of maybe some of the projects, you know, that the team is working on, what was most important this year. You know, also, with respect to top of funnel, you know, obviously, that's a goal for you all. Just kind of curious what have been maybe some of the most successful strategies and kind of how you're thinking about driving more top of funnel as we move through the year? Thanks.

Speaker #3: Thanks.

Speaker #4: Sure. Thanks, Josh. So gosh, on machine translation, excuse me, machine learning, so the feed, look, it's basically everything. So it's both collecting more signals.

Speaker #4: It's also being more judicious about the weighting of those signals. It is updating our models faster. So designing a new model, getting into production, I think that can be quite a lot faster.

Speaker #4: It's pretty much the entire stack. This reminds me of kind of our journey in the ad side, where when we look ahead, we feel confident basically everything we do will work because it has worked for other platforms.

Yeah, thank you so much. Uh, for taking the question I wanted to maybe um double click on the, on the ml Talent. Um Steve and maybe if you could kind of give us the short list of uh maybe some of the projects. Um, you know, that that the team is working on what's most important this year. Um, and then, you know, also, uh, super respect to top of funnel, you know, obviously that's a, a goal for you all just kind of curious. Um, what have been maybe some of the most successful, um, strategies and kind of how you're thinking about uh driving more top of funnel as as we go through the year, thanks?

Steve Huffman: Sure. Thanks, Josh. Gosh, on machine learning, the feed, look, it's basically everything. It's both collecting more signals. It's also being more judicious about the weighting of those signals. It is updating our models faster. Designing a new model, getting into production, I think that can be quite a lot faster. It's pretty much the entire stack. This reminds me of kind of our journey on the ad side, where when we look ahead, we feel confident basically everything we do will work because it has worked for other platforms, and we're just on the early side of this journey. We've been bringing in a lot of talent from platforms that have billions of users who have worked on this problem before.

Sure, thanks Josh. So gosh on machine translation. Excuse me, machine learning. So the feed,

Speaker #4: And we're just on the early side of this journey. We've been bringing in a lot of talent from platforms that have billions of users who have worked on this problem before.

But it's basically everything. So um, it's both

Speaker #4: So it's really the entire stack. And quite honestly, it's all of our processes around it. Our goal is to go from where we are today, about 50 million US users, to 100 million US users.

Collecting more signals. It's also being more judicious about the weighting of those signals. Um it is updating our models faster. So designing a new model getting in a production, I think that can be um quite a lot faster.

um,

it's pretty much the entire stack. It just reminds me of

Speaker #4: Since we have 200 million US weeklies on the platform already, we believe investing in the feed here will improve retention and increase frequency and get us there.

um, kind of our journey in the

Speaker #4: But really, my answer is everything.

Speaker #5: Yeah. I can talk about the top-of-funnel. So let me start with our existing top-of-funnel, which is really significant, and that's some of the traffic that we get from search.

Steve Huffman: It's really the entire stack, and quite honestly, it's all of our processes around it. You know, our goal is to go from where we are today, about 50 million US users, to 100 million US users. Since we have 200 million US weeklies on the platform already, we believe investing in the feed here will improve retention and increase frequency and get us there. Really, my answer is everything.

We feel confident that basically everything we do will work because it has worked for other platforms and we're just on the early side of this journey. Um, we've been bringing in a lot of talent from platforms that have billions of users who have worked on this problem before. Um,

Speaker #5: And there's an effort to think about how do we convert that traffic from that search use case to the core Reddit use case, which is a combination of search, enjoying different communities, and enjoying the feed.

so it's really the entire stack and quite honestly, it's all of our processes around it.

You know, our goal is to go from where we are today about 50 million users to a 100 million users

Speaker #5: So that's an opportunity for us, and that's core to our roadmap strategy. The second is increasing the top-of-funnel, which is the work that we do with marketing.

since we have 200 million US Weekly on the platform already, uh, we believe investing in the feed. Here will improve retention in increased frequency and get us there. But really my answer is everything.

Jennifer Wong: Yeah, I can talk about the top of funnel. Let me start with our existing top of funnel, which is really significant, and that's some of the traffic that we get from search. There's an effort, you know, to think about how do we convert that traffic from that search use case to the core Reddit use case, which is, you know, a combination of search, enjoying different communities, and enjoying the feed. That's an opportunity for us, and that's core to our roadmap strategy. The second is increasing the top of funnel, which is the work that we do with marketing, and it's different by different territories.

Jen Wong: Yeah, I can talk about the top of funnel. Let me start with our existing top of funnel, which is really significant, and that's some of the traffic that we get from search. There's an effort, you know, to think about how do we convert that traffic from that search use case to the core Reddit use case, which is, you know, a combination of search, enjoying different communities, and enjoying the feed. That's an opportunity for us, and that's core to our roadmap strategy. The second is increasing the top of funnel, which is the work that we do with marketing, and it's different by different territories.

Speaker #5: And it's different by different territories. So if you think about a mature market like the US, that's an area where we go after specific audiences, where we have a great content foundation in parenting or in football, like the NFL.

Speaker #5: And we're just trying to help let people know that there's great content for parents and for football fans on Reddit. And so we've done some of that brand and lead generation work to sort of prime the market to increase that awareness.

Speaker #5: Then we have work outside of the US where we also have more brand foundational work. For example, people might know Reddit through search, but they may not have the broader understanding of the differentiators of Reddit that were the most human place on the internet, that we have this network of communities.

Jennifer Wong: If you think of a mature market like the US, that's an area where we go after specific audiences, where we have a great content foundation in parenting or in football with the NFL, and we're just trying to help let people know that there's great content for parents and for football fans on Reddit. We've done some of that brand and lead generation work to sort of prime the market to increase that awareness. We have work outside of the US where we also have more brand foundational work. For example, people might know, you know, Reddit through search, but they may not have the broader understanding of the differentiators of Reddit, that we're the most human place on the Internet, that we have this network of communities.

Jen Wong: If you think of a mature market like the US, that's an area where we go after specific audiences, where we have a great content foundation in parenting or in football with the NFL, and we're just trying to help let people know that there's great content for parents and for football fans on Reddit. We've done some of that brand and lead generation work to sort of prime the market to increase that awareness. We have work outside of the US where we also have more brand foundational work. For example, people might know, you know, Reddit through search, but they may not have the broader understanding of the differentiators of Reddit, that we're the most human place on the internet, that we have this network of communities.

Yeah, I can talk about the top of funnel. So let me start with our existing top of funnel, which is really significant. And that's, um, some of the traffic that we get from search. Um, and there's an effort, you know, to think about how do we convert that traffic from that search use case to the core Reddit use case, which is, you know, a combination of search, enjoying different communities, and enjoying the feed. Um, so that's an opportunity for us, and that's core to our roadmap strategy. The second is increasing the top of funnel, which is the work that we do with marketing, and it's different by, uh, different territories. So, if you think of a mature market like the US,

Speaker #5: And so we're building and investing in some of the more broader brand foundations that, again, will allow us to prime a new top-of-funnel and add to the top-of-funnel that exists today.

Speaker #5: So in both, I think we're very early in that journey and that for many years, Reddit, for most of its life, has not invested in marketing.

Speaker #5: So that remains, I think, fertile ground for us.

Speaker #3: Super helpful. Thank you.

Speaker #1: You are next question comes from the Citi. Please go ahead.

Speaker #3: Thanks for taking the call. The question, Steve, I wanted to sort of understand a little bit more your points on the progress around verification processes and bot labeling here, particularly as a sign-up and login process evolves and the feed evolves as well.

Jennifer Wong: We're building, investing in some of the more broader brand foundations that again, will allow us to prime, you know, a new top of funnel and add to the top of funnel that exists today. And both, I think we're very early in that journey in that, you know, for many years, Reddit, for most of its life, has not invested in marketing. That remains, I think, fertile ground for us.

Jen Wong: We're building, investing in some of the more broader brand foundations that again, will allow us to prime, you know, a new top of funnel and add to the top of funnel that exists today. And both, I think we're very early in that journey in that, you know, for many years, Reddit, for most of its life, has not invested in marketing. That remains, I think, fertile ground for us.

That's an area where we go after specific audiences, where we have a great content foundation in parenting, or in football, like an NFL and we're just trying to help. Let people know that there's, um, there's great content for parents and for football fans on Reddit. And so we've done some of that, um, brand and lead generation work to sort of prime the market to increase that awareness. Then we have work outside of the US where um, we also have more brand, foundational work. Um, for example, people uh might know, uh, you know, Reddit through search but they may not have the broader understanding of the differentiators of Reddit that were the most human place on the internet that we have this network of communities. And so we're building investing in some of the more broader. Brand foundations that again will allow us to prime, you know, a new type of funnel and add to the top of funnel that exists today.

Speaker #3: So help us understand a little bit more about the process around verification and the successor progress with bot labeling. And then, Jen, with Reddit Max, in this first quarter, clearly seeing a lot of progress and momentum here.

So um, so and both, I think we're very early in that journey and that, you know, for many years Reddit for most of his life has not invested in marketing so um, that remains I think fertile, ground for us.

Speaker #3: Just talk to us about some of the key learnings that you're looking to take to this next level of Reddit Max and next version as we continue to see greater adoption.

Josh Beck: Super helpful. Thank you.

Super helpful. Thank you.

Operator: Your next question comes from the line of Ron Josey with Citi. Please go ahead.

Your next question comes from the line of Ron Josie with City. Please go ahead.

Ron Josey: Thanks for taking the call. The question, Steve, I wanted to sort of understand a little bit more your points on the progress around verification processes and bot labeling here, particularly as the sign-up and login process evolves and the feed evolves as well. Help us understand a little bit more about the process around verification and the success or progress with bot labeling. Jen, with Reddit Max, you know, in this Q1, clearly seeing a lot of progress and momentum here. Just talk to us about some of the key key learnings that you're looking to take to this next level of Reddit Max, the next version, as we, you know, continue to see greater adoption. Thank you.

Speaker #3: Thank you.

Speaker #4: Thanks, Ron. So yeah, you asked about verification and bot labeling. And there's also a third dimension to this, which is this user login in general.

Speaker #4: These things are actually all overlapping. So I'll start with the easiest one, bot verification. So we have what we call good bots on Reddit, which are basically programs that mostly moderators have written to help run communities on Reddit.

Speaker #4: We're porting those over to our developer platform. And that will both result in them being labeled on Reddit more transparently and also allow us to batten down the hatches more on unauthorized bot usage.

Steve Huffman: Thanks, Ron. Yeah, you asked about verification and bot labeling, and there's also a third dimension to this, which is just user login in general. These things are actually all overlapping. I'll start with the easiest one, bot verification. We have what we call good bots on Reddit, which are basically programs that mostly moderators have written to help run communities on Reddit. We're porting those over to our developer platform, and that will both result in them being labeled on Reddit more transparently and also allow us to batten down the hatches more on unauthorized bot usage. This is both transparency for users and also part of the human verification and defense of Reddit. On the verification and login side, one of the key technologies there is something like passkeys.

Thanks for taking the call. Uh, the question Stephen, I wanted to sort of understand a little bit more your points on the progress around verification processes and Bots labeling here, particularly as a sign up and login process evolves and and the, the the feed evolved as well. So, help us understand a little bit more about the process around verification and the success or progress with Bots labeling and then Jen with Reddit Max. You know, in this first quarter, clearly seeing a lot of progress and momentum here, just talk to us about some of the key, uh, key learnings that you're looking to take to this next level of Max and next version, as we, you know, continue to see greater adoption. Thank you.

Thanks Ron. So

Speaker #4: So this is both transparency for users and also part of the human verification and defense of Reddit. On the verification and login side, one of the key technologies there is something like passkeys.

Speaker #4: So passkeys is a general technology that includes things like FaceTime, Touch ID, YubiKeys, it's basically a login system that requires a person to do something, look at your phone, or touch something.

Yeah, you asked about verification and Bots labeling and there's also a third dimension to this, which is this user login in general. These things are actually all overlapping. So I'll start with the easiest 1 bot verification. So we have what we call good bots on Reddit, which are basically, uh, programs that, uh, mostly moderate or have written to help run communities on Reddit. We're, uh, porting those over to our developer platform. Um,

Speaker #4: This is both a more secure way of logging in and easier way of logging in, which will help us just grow logged-in users in general.

Speaker #4: And then also serves as probably the lightest weight and most privacy and user acceptable way of doing human verification as well. So all of these things kind of tie together to add more transparency to Reddit, improve bot defenses for Reddit, and increase login for Reddit.

And that will both, uh, result in them being labeled on Reddit more transparently, and also allow us to batten down the hatches more on unauthorized spot usage. So, um, this is both transparency for users and also part of the human verification and defense of Reddit.

Um,

Steve Huffman: Passkeys is a general technology that includes things like Face ID, Touch ID, YubiKeys. It's basically a login system that requires a person to do something, look at your phone or touch something. This is both a more secure way of logging in, an easier way of logging in, which will help us just grow logged in users in general, and then also serves as probably the lightest weight and most privacy and user acceptable way of doing human verification as well. All of these things kind of tie together to add more transparency to Reddit, improve bot defenses for Reddit, and increase login for Reddit. All of this work is underway on all three of those dimensions.

Speaker #4: All of this work is underway on all three of those dimensions. So we've shipped a few things in Q1, and we've got a few more coming in this quarter as well.

Speaker #5: Okay. Regarding Max I've been really pleased with the adoption of Max. I think customers have been really willing to make the conversion. We've been focused on existing customers and converting existing customers.

Speaker #5: They're very pleased with the CPA benefits that they're seeing out of the gate, which is great. And I think what this opens the door for us to do is to have faster adoption of our new performance features and we see this because some of that benefit is coming from the fact that they hadn't adopted maybe one or two features that they auto-adopted when they moved to Reddit Max in immediately they're seeing the performance benefits of that.

Steve Huffman: We shipped a few things in Q1, and we've got a few more coming in this quarter as well.

Jennifer Wong: Okay. Regarding Max, I've been really pleased with the adoption of Max. I think customers have been really willing to make the conversion. We've been focused on existing customers and converting existing customers. They're very pleased with the CPA benefits that they're seeing out of the gate, which is great.

Jen Wong: Okay. Regarding Max, I've been really pleased with the adoption of Max. I think customers have been really willing to make the conversion. We've been focused on existing customers and converting existing customers. They're very pleased with the CPA benefits that they're seeing out of the gate, which is great.

Uh, probably the lightest weight and most, um, privacy- and user-acceptable way of doing human verification as well. So all of these things kind of tie together to, um, uh, add more transparency to Reddit, improve bot defenses for Reddit, and increase, uh, login or Reddit. Um, all of this work is underway, um, on all three of those dimensions. So, we shipped a few things in Q1, and we've got a few more coming, uh, in this quarter as well.

Speaker #5: And so this will shorten the timeline by which we can roll out performance features to customers, which we're really excited about. And sort of take the operational friction there out.

Speaker #5: The other thing is they really love the insight. So we invested not only in delivering the performance, we invested in giving insights on, okay, well, what did the automation find that was unique on Reddit that makes you learn about what you're creative, how your creative matched to what community on Reddit?

Jennifer Wong: I think what this opens the door for us to do is to have faster adoption of our new performance features. We see this because some of that benefit is coming from the fact that they hadn't adopted maybe one or two features that they auto-adopted when they moved to Reddit Max, and immediately they're seeing the performance benefits of that. This will shorten the timeline by which we can roll out performance features to customers, which we're really excited about, and, you know, sort of take the operational friction there out. The other thing is they really love the insights.

Jen Wong: I think what this opens the door for us to do is to have faster adoption of our new performance features. We see this because some of that benefit is coming from the fact that they hadn't adopted maybe one or two features that they auto-adopted when they moved to Reddit Max, and immediately they're seeing the performance benefits of that. This will shorten the timeline by which we can roll out performance features to customers, which we're really excited about, and, you know, sort of take the operational friction there out. The other thing is they really love the insights.

Okay regarding uh, Max, um, I've been really pleased with the adoption of of Max. I think customers have been really willing to make the conversion. We've been focused on existing customers and converting existing customers. They're very pleased with the CPA benefits that they're seeing out of the gate, which is great.

Speaker #5: And we're getting an incredible positive response from our customers in that it doesn't feel black boxy to them. They're actually learning from using Reddit Max.

Speaker #5: And that's an area that we'll continue to invest in. And we really started with converting existing advertisers, but given the adoption and the positive response we're now moving toward, onboarding new customers directly into it.

And I think what this opens the door for us to do is to have faster adoption of our new performance features. And we see this because some of that benefit is coming from the fact that they had an adopted maybe 1 or 2 features that they oughta adopted when they moved to Reddit Max and immediately, they're seeing the performance benefits of that. And so this will shorten the timeline by which we can roll out performance features to customers which are really excited about and, you know, sort of take the brick operational friction there out.

Jennifer Wong: We invested not only in delivering the performance, we invested in giving insights on, okay, well, what did the automation find that was unique on Reddit that makes you learn about how your creative matched to what community on Reddit? Now we're getting an incredible, like, positive response from our customers in that it doesn't feel black boxy to them. They're actually learning from using Reddit Max, and that's an area that we'll continue to invest in. We really started with converting existing advertisers, but given the adoption and the positive response, you know, we're now moving toward onboarding new customers directly into it. Feeling really, really positive about what we've seen so far.

Jen Wong: We invested not only in delivering the performance, we invested in giving insights on, okay, well, what did the automation find that was unique on Reddit that makes you learn about how your creative matched to what community on Reddit? Now we're getting an incredible, like, positive response from our customers in that it doesn't feel black boxy to them. They're actually learning from using Reddit Max, and that's an area that we'll continue to invest in. We really started with converting existing advertisers, but given the adoption and the positive response, you know, we're now moving toward onboarding new customers directly into it. Feeling really, really positive about what we've seen so far.

Speaker #5: So feeling really, really positive about what we've seen so far.

Speaker #3: Thank you, Steve.

Speaker #1: You are next question comes from the line of Jason Helfstein with Oppenheimer. Please go ahead.

Speaker #6: Thanks for taking the question. Maybe one DE-related question with two parts. So one, we get a lot of questions from investors just about BAU and how important it is and obviously from a long-term perspective, it's important.

Speaker #6: But right now, it's not a huge focus of the company given it's more about monetization. But I guess, Steve, maybe just talk about, again, how important is it to you to see stable to improving DAU growth and the ways that you can kind of control that in the short term?

The other thing is they really love the inside. So we invested not only in delivering, the performance, we invested in giving insights on. Okay. Well, what did the automation find? That was unique on Reddit that makes you learn about what you're creating you know, how your creative match to what community on Reddit. And now we're getting an incredible like positive response from our customers. And that it doesn't feel black boxing to them. They're actually learning from using Reddit Max and that's an area that will continue to invest in and we really started with converting and existing advertisers but given the adoption and the positive response. You know, we're now moving toward um, onboarding new customers directly into it. So, um, feeling really, really positive about what we've seen so far.

Ron Josey: Thank you, Steve.

Ron Josey: Thank you.

I just

Operator: Your next question comes from the line of Jason Helfstein with Oppenheimer. Please go ahead.

Speaker #6: And then as we think about the discussions around AI and the third-party agents leveraging your data, how potentially you can get credit for, call it, DAU that's generated on third parties or perhaps that's a part of the larger discussions around AI licensing.

Jason Helfstein: Thanks for taking the question. Maybe, like, 1 DAU-related question with 2 parts. One, you know, we get a lot of questions from investors just about, you know, DAU and how important it is, and obviously from a long-term perspective, it's important. Right now it's not a huge focus of the company given it's more about monetization. I guess, Steve, maybe just talk about, like, again, you know, how important is it to you to, you know, see, you know, stable to improving DAU growth and the ways that you can kind of control that in the short term. As we think about the discussions around AI and, you know, the third-party agents leveraging your data, how potentially you can, you know, get credit for, you know, call it DAU that's generated on third parties or perhaps that's a part of the larger discussions around AI licensing. Thanks.

you. Our next question comes from the line of Jason hollstein with Oppenheimer. Please go ahead.

Speaker #6: Thanks.

Speaker #4: Okay. So contrary to that, DAU is the primary focus of the company. Because revenue is doing very, very well. So DAU is both our mission, communities for everybody, and also fuel for the business.

Thanks for taking the question, maybe like um 1 day you're related question with 2 parts. So 1 um, you know we get a lot of questions from investors just about, you know, bow and and and how important it is. And obviously, from a long-term perspective, it it it's important. Um, but right now it's not a huge focus of the company given, it's more about monetization but I guess, Steve, maybe we just talked about like again, you know, how important is it to you to, you know, see, you know, stable to improving Dau growth and the ways that you can kind of control?

Jason Helfstein: As we think about the discussions around AI and, you know, the third-party agents leveraging your data, how potentially you can, you know, get credit for, you know, call it DAU that's generated on third parties or perhaps that's a part of the larger discussions around AI licensing. Thanks.

Speaker #4: So DAU is the top priority. We have a particular focus right now on the US DAU. So how do we go from 50 million dailies to 100 million dailies?

Speaker #4: As I mentioned before, the opportunity is on our doorstep because you look at our weekly number, there are 200 million Americans on Reddit every week.

In the short term and then as we think about um the discussions around Ai and and you know, the third-party agents leveraging, your data how potentially you can you know, get credit for, you know, call it Dau. That's generated on on third parties or perhaps that's a part of the larger discussions around Al licensing. Thanks.

Steve Huffman: Okay. Contrary to that, DAU is the primary focus of the company because revenue is doing very, very well. DAU is both our mission, communities for everybody, and also fuel for the business. DAU is the top priority. We have a particular focus right now on the US DAU. How do we go from 50 million dailies to 100 million dailies? As I mentioned before, the opportunity is on our doorstep because you look at our weekly number, there are 200 million Americans on Reddit every week. We think about how do we increase that frequency from maybe once a week to, for example, every day. There's a lot on the list here. Our focus the last couple of quarters has been on onboarding. We're seeing progress there.

Speaker #4: So we think about how do we increase that frequency from maybe once a week to, for example, every day? There are a lot on the list here.

Okay. So, um

Speaker #4: Our focus the last couple of quarters has been onboarding. We're seeing progress there. We've moved new user retention in the quarter. Feeds will be a major driver.

I'm sorry to that. Uh, Dau is the primary focus of the company. Um, because revenue is doing very, very well. Um, so Dau is both our mission communities for everybody and also fuel for the business. So,

Speaker #4: Looking forward, I think we're at the relative beginning of our journey there. Search has been a consistent driver. So carrying most of the weight the last couple of quarters has been machine translation.

Speaker #4: We're translated in the 30 languages today. We've been able to lower the cost there, which is nice. It allows us to scale even more there.

Speaker #4: And then performance is another big driver. And we look at gaps between iOS and Android and what we expected Delta should be, which is basically zero.

Steve Huffman: We've moved new user retention in the quarter. Feeds will be a major driver. Looking forward, I think we're at the relative beginning of our journey there. Search has been a consistent driver. Securing most of the weight the last couple of quarters has been machine translation. We're translated into 30 languages today. We've been able to lower the cost there, which is nice. It allows us to scale even more there. Performance is another big driver. We look at gaps between, you know, iOS and Android and what the expected delta should be, which is basically zero. I think a lot of opportunity there as well. I'll just reiterate, DAU is actually the top focus of Reddit and in particular US DAU.

Speaker #4: So I think a lot of opportunity there as well. So I'll just reiterate, DAU is actually the top focus of Reddit and in particular US DAU.

Speaker #4: You had a second part of your question about AI and some third-party agents. Look, this is an ecosystem we live in. We have important partnerships with both Google and OpenAI.

Um, Dau is the top priority. We have a particular Focus right now on the USDA. So how do we go from 50 million daily to 100 million daily? Um, as I mentioned before, the opportunity is on our doorstep because you look at our weekly number. There are 200 million Americans on Reddit every week. So, um, we think about how do we increase that frequency from maybe once a week to for example, every day, um, there are, there's a lot on the list here are focused the last couple of quarters has been an onboarding. We're seeing progress there. We've moved new, user retention in the quarter. Um uh feeds will be a major driver uh looking forward. I think we're at the relative beginning of our journey there. Uh search has been a consistent driver to carrying most of the weight, the last couple

Speaker #4: Those are very meaningful to us. And I think it's mutual. We continue to value those. We continue to look for other top-of-funnel opportunities in the way to make our products mutually help each other.

Speaker #4: But nothing new to share on those specific relationships at this time.

Speaker #6: Thank you.

Speaker #1: You are next question comes from the line of Rich Greenfield with Lightshed Partners. Please go ahead.

Steve Huffman: You had a second part of your question about AI and some third-party agents. Look, this is an ecosystem we live in. We have important partnerships with both Google and OpenAI. Those are very meaningful to us. I think it's mutual. We continue to value those. We continue to look for, you know, other top-of-funnel opportunities, and the way to make our products mutually help each other. Nothing new to share on those specific relationships at this time.

A couple of quarters has been machine translation. Um, we're translated in the 302 lower the cost there, which is nice. It allows us to scale even more there. Um, and then, uh, performance is is another big driver. And we look at gaps between, you know, IOS and Android. And what we, the expected Delta should be, which is basically zero. Um, so I think a lot of opportunity there as well. So I'll just reiterate, CAU is actually the top focus of Reddit and in particular USDA.

Speaker #7: Hi. Thanks for taking the question. I got a couple. First, just want to circle back on this ambitious $100 million DAU goal. Is there a timeframe for how you're thinking about achieving that?

Speaker #7: And if I look at weeklies versus dailies, weeklies are actually growing even faster than dailies. So engagement on that metric is going down. I'm curious, what's driving that?

Speaker #7: And how does that play into getting to this ambitious $100 million goal, Steve? And then sort of a big-picture question that ties to the quote you had in the letter.

Important Partnerships with both with both Google and openai. Those are very meaningful to us. Um, and I think it's it's mutual um we continue to Value those. We continue to look for, you know, other top of funnel opportunities uh and the way to make our products, um, mutually help each other. Uh,

Jason Helfstein: Thank you.

But nothing new to share on those specific relationships at this time.

Thank you.

Operator: Your next question comes from the line of Rich Greenfield with Lightshed Partners. Please go ahead.

Speaker #7: If you're the oil powering the modern internet, 50 to 60 million a year from Google and OpenAI seems like a pimple, I guess. How are the conversations changing heading into 2027 renewals given the state of where AI is today?

Rich Greenfield: Hi. Thanks for taking the question. I got a couple. Just wanna circle back on this ambitious 100 million DAU goal. Is there a timeframe for how you're thinking about achieving that? You know, if I look at weeklies versus dailies, weeklies are actually growing even faster than dailies, so engagement on that metric is going down. I'm curious what's driving that, how does that play into getting to this ambitious 100 million goal, Steve? Then a sort of a big picture question that ties to the quote you had in the letter. If you're the oil powering the modern internet, $50 to 60 million a year from Google and OpenAI seems like a pimple, I guess. How are the conversations changing heading into 2027 renewals given the state of where AI is today?

You are next question, comes from the line of Rich Greenfield with light shed Partners. Please go ahead.

Speaker #4: Thanks, Rich. Okay. 100 million. Look, when I came back to the company, about 10 years ago, we were 12 million DAU. And over the last 10 years, we've 10xed that to over 120 million DAU.

Speaker #4: Now we've got our site set on a billion global DAU and 100 million in the US specifically. I don't know the timeline, but we are I think relentless in our work to get there.

Hi. Thanks for taking the question. I got a couple first. Just want to Circle back on this ambitious. 100 million Dau goal. Is there a time frame for how you're thinking about achieving that? And you know, if I look at weeklies versus dailys, weeklys are actually growing even faster than daily, so engagement on that metric is going down. I'm curious. What's driving that? And how does that play into getting to this ambitious 100 million goals Steve. And then, a sort of a big picture question, that ties to the quote you had in, in the, um, in the the letter.

If you're the oil, powering the modern internet, 50 to 60 million a year from Google and open AI, seems like a pimple I guess.

Speaker #4: As I mentioned in my script, the strategy is the same, which is build the best version of Reddit. And we've been focused on the last year.

How are the conversations changing heading into 2027 renewals, given the state of where AI is today?

Steve Huffman: Thanks, Rich. Okay. 100 million. Look, when I came back to the company, about 10 years ago, we were at 12 million DAU. Over the last 10 years, we've 10x that to, you know, over 120 million DAU. You know, now we've got our sights set on a 1 billion global DAU and 100 million in the US specifically. I don't know the timeline, but we are, I think, relentless in our work to get there. As I mentioned in my script. The strategy is the same, which is build the best version of Reddit. We've been focused on the last year. I thought we'd built the best version that our company was capable of, but that's not the best version that we needed.

Speaker #4: I thought we'd built the best version that our company was capable of, but that's not the best version that we needed. So we've done a lot of work on the team, on the processes, on the technology to get there.

Speaker #4: And we'd like to get there as quickly as possible, but it's going to come through with very consistent product improvements. I've enumerated a lot of that, a lot of the things on the list there.

Thanks Rich. Okay. 100 million. Um look when I came back to the company uh about 10 years ago we were 12 million Dau and over the last 10 years. We've 10x that to you know, over 120 million Dau. Um, you know, now we've got our sights set on a billion Global Dau and 100 million in the US. Specifically

Speaker #4: But it's all sensible things. If you've used Reddit. And look, I will note your comments on the pricing for AI deals and include you in our conversations with our partners.

Um, I don't know the timeline, but we are, I think, relentless in our work to get there. Um, as I mentioned in my script,

Speaker #4: Look, the world can see that Reddit's data is valuable, both our existing partners and potential ones. Look, at the end of the day, there is no artificial intelligence without actual intelligence.

Steve Huffman: We've done a lot of work on the team, on the processes, on the technology to get there. We'd like to get there as quickly as possible, but it's gonna come through, with very consistent product improvements. I've enumerated a lot of that, a lot of the things on the list there, but it's all sensible things if you've used Reddit. Look, I will note your comments on the pricing for AI deals and include you in our conversations with our partners. Look, the world can see that Reddit's data is valuable, both our existing partners and potential ones. Look, at the end of the day, there's no artificial intelligence without actual intelligence, and that comes from Reddit.

Speaker #4: And that comes from Reddit. I think one of the dynamics we're seeing in the modern internet is the more it becomes sanitized and summarized, and optimized for attention by AI, the more that people crave the human information.

The strategy is the same, which is build the best version of Reddit. Um and we've spent focus on the last year. I thought we'd built the best version that uh our company was capable of, but that's not the best version that we needed. So we've done a lot of work on the team, on the processes on the technology to get there. Um,

Speaker #4: That's both AIs that crave it and also the internet consumer or people in general that crave it. And that's our business, is those human connection and conversations.

Speaker #7: Is there ever a value to an exclusive deal with one company versus opening up to everyone?

We'd like to get there as quickly as possible, but it's going to come through, um, with very consistent product improvements. I've enumerated a lot of that. Uh, a lot of the things on the list there but it's all sensible things if you've used Reddit. Um, and look, I will, I will note your comments on the pricing of our AI deals and include you in our conversations with our partners. Um, but the world can see that reddit's data is valuable um, both our existing partners and potential ones.

Speaker #4: No comment on that, Rich.

Steve Huffman: I think one of the dynamics we're seeing in the modern internet is the more it becomes sanitized and summarized and optimized for attention by AI, the more that people crave the human, the human information. That's both AIs that crave it and also the internet consumer or people in general that crave it. That's our business is those human connection and conversations.

Speaker #7: Thank you.

Speaker #1: You are next question comes from the line of Mark Smulik with Bernstein. Please go ahead.

Um like at the end of the day, there's no artificial intelligence without actual intelligence and that comes from Reddit. Um, I think 1 of the Dynamics we're seeing in the modern internet is the more it becomes

Speaker #5: Yes. Thanks for taking the questions. Steve, I kind of hate to belabor the point a little bit, but kind of in your opening remarks about the foundational changes to talents and infrastructure, is that really just focused on engagement and the product?

Sanitized, and summarized and optimized for attention by AI. The more that people crave

Speaker #5: And if so, kind of when did you realize that you were kind of hitting a ceiling? And so kind of how far are we into kind of some of these material changes?

Rich Greenfield: Is there ever a value to an exclusive deal with one company versus opening up to everyone?

The human uh the human information. Uh that's both AI that crave it and also the internet consumer or people in general that create it and that's our business is those human connections and conversations.

Speaker #5: And I guess kind of following on Rich's point, when could we start to see a reflection in the KPIs of some of the efforts of these new changes?

Steve Huffman: No comment on that, Rich.

Is there ever a value to an exclusive deal with 1 company versus opening up to everyone?

Rich Greenfield: Thank you.

No comments on that rich.

Thank you.

Operator: Your next question comes from the line of Mark Shmulik with Bernstein. Please go ahead.

Speaker #5: And then secondly, Jen, you mentioned you've seen kind of strong performance in both price and ad impressions, ad load. How do you kind of think about the tolerance of users for kind of increased ad load and kind of, as you also think about balancing kind of the engagement question or to ask it another way, is there any risk of kind of pushing the revenue lever too far that may have adverse effects on engagement?

Mark Shmulik: Yes, thanks for taking the questions. Steve, I kinda hate to belabor the point a little bit, you know, kind of in your opening remarks about the foundational changes to talent and infrastructure, is that really just focused on engagement and, and the product? If so, kind of when did you realize that you were kinda hitting a ceiling? Kind of how far are we into kinda some of these material changes? You know, I guess kinda following on Rich's point, when could we start to see a reflection in the KPIs of some of the efforts of these new changes? Secondly, Jen, you mentioned, you know, you've seen kind of strong performance in both price and ad impressions, ad load.

You're our next question. Comes from the line of Mark muick with Bernstein. Please go ahead.

Speaker #5: Thank you.

Speaker #6: Thanks, Mark. Look, we've been I think upgrading the company top to bottom. The people, the processes, the tech. We're in the middle of that now.

Speaker #6: I think we've made some important changes with new to leadership on product and engineering. We're also bringing in a lot of experienced talent into the company as we speak.

Uh yes, thanks for taking the questions. Uh, Steve, I kind of hate to be labor the point a little bit, but, you know, kind of in in your opening remarks about this foundational changes to talents and infrastructure. Um, is that really just focused on engagement and and, and the product and if so kind of when did you realize that you were kind of hitting a ceiling and so kind of how long, how far are we into kind of some of these material changes? Um, you know, and I guess kind of following on Rich's point when could we start to see, uh, a reflection in the kpis of some of the efforts of these new changes and then uh secondly uh, Jen you mentioned, you know, you've seen kind of strong performance in both price and and add in

Mark Shmulik: You know, how do you kinda think about the tolerance of users for kind of increased ad load and kind of, you know, as you also think about balancing kind of the engagement question? Or to ask it another way, is there any risk of kind of pushing the revenue lever too far that may have adverse effects on engagement? Thank you.

Speaker #6: But I think there's more work to do there. There are probably always be more work to do there, but we are really in the middle of it.

Speaker #6: That said, we are working now. And so we've made changes to onboarding to the feeds, to search, that have all started to drive growth.

Impressions, add load. Um, you know, how do you kind of think about the tolerance of of users, for kind of increased ad load and and kind of, uh, you know, as you also think about balancing kind of the engagement question or ask it another way. Is there any risk of kind of pushing the revenue lever too far that may have adverse effects on engagement. Thank you.

Steve Huffman: Thanks, Mark. We've been, I think, upgrading the company top to bottom, the people, the processes, the tech. We're in the middle of that now. I think we've made some important changes with new to leadership on product and engineering. We're also bringing in a lot of experienced talent into the company as we speak. I think there's more work to do there. There will probably always be more work to do there, but we are really in the middle of it. That said, we are working now, we've made changes to onboarding, to the feeds, to search that have all started to drive growth. We've seen some improvements in user retention, which is the number we care the most about. I'd like to see our progress here accelerate.

Thanks Mark. Um,

Speaker #6: We've seen some improvements in user retention, which is the number we care the most about. So I'd like to see our progress here accelerate.

Look, we've been, I think upgrading the company top to bottom. Um,

Speaker #6: There's a lot, I think, below the surface just in terms of how quickly can we get code into production? How sophisticated are our experiment readouts?

Speaker #6: How quick is our decision-making around these things? But I look at all of these holistically as getting Reddit to the next level. And I think we're partway there.

Speaker #6: I know we can get there. I think there's another couple of levels for us. And so we've been hard at it. But we do expect to see improvements in the results.

Uh, we're bringing in a lot of experienced Talent into the company as we speak, um, but I think there's more work to do there. There are probably always be more work to do there, but we are really in the middle of it. That said we are working now. And so we've, um, made changes to onboarding, to the feeds to search that up all, um, started to drive growth, we've seen some, uh, improvements in user retention, which is the number We Care the most about

Speaker #6: Immediately. And we've seen some in this quarter.

Steve Huffman: There's a lot, I think, below the surface just in terms of, you know, how quickly can we get code into production, how sophisticated are our experiment readouts, how quick is our decision-making around these things. I look at all of these holistically as, you know, getting Reddit to the next level. I think we're partway there. I know we can get there. I think there's another couple of levels for us, and so we've been hard at it. We do expect to see improvements in the results, you know, immediately, and we've seen some in this quarter.

Speaker #5: And I'll take the one on ad load. So our ad load overall is still quite low compared to peers. Especially if you look at it just on our feed-to-feed basis, it's still substantially lower.

Uh, so I'd like to see our progress here accelerate. Um, there's a lot I think below the surface just in terms of

Speaker #5: And overall on Reddit, we actually don't even have ads in certain growing surfaces like search, for example. So overall, I'd say I actually feel comfortable and absolute basis that the ad experience is there actually is not high ad load.

Speaker #5: But that aside, we test this all the time. And I think we're very thoughtful about it. As you increase the ad relevancy, which we do through our ML work, and we increase the diversity of advertisers in our marketplace, which we're doing.

Jennifer Wong: I'll take the one on ad load. Our ad load overall is still quite low compared to peers. Especially if you look at it just on a feed-to-feed basis, it's, you know, still substantially lower. Overall on Reddit, we actually don't even have ads in certain, you know, high, you know, growing surfaces like search, for example. Overall, I'd say I actually feel comfortable on an absolute basis of the ad experiences. There actually is not a high ad load. That aside, you know, we, we test this all the time, and I think we're very thoughtful about it.

Jen Wong: I'll take the one on ad load. Our ad load overall is still quite low compared to peers. Especially if you look at it just on a feed-to-feed basis, it's, you know, still substantially lower. Overall on Reddit, we actually don't even have ads in certain, you know, high, you know, growing surfaces like search, for example. Overall, I'd say I actually feel comfortable on an absolute basis of the ad experiences. There actually is not a high ad load. That aside, you know, we, we test this all the time, and I think we're very thoughtful about it.

Um you know how quickly can we get code into production? Uh, how sophisticated are our experiment readouts. How quick is our our decision-making around these things? Um but I I look at all of these holistically as you know, getting ready to the next level, um, and I think we're part way there. I know we can get there. I think there's another couple of levels for us, and so we've been hard at it. But we do expect to see improvements in the results, you know, immediately, and we've seen some in this quarter.

Speaker #5: We said we're growing active advertisers, 75% year over year. That actually helps with enabling if you were to move the ad load lever, like giving you the diversity to still maintain performance.

I think they're going on um add load. So our ad load overall is still quite low compared to peers. Um especially if you look at it just on a feed to feed basis, it's

Speaker #5: So just know that there are other levers that we focus on more than ad load. Our strategy is not to increase ad load. Our strategy is to grow users all the things that Steve talked about where we think we have a 10X opportunity there.

Jennifer Wong: You know, as you increase the ad relevancy, which we do through our ML work, and we increase the diversity of advertisers in our marketplace, which we're doing, we said we're growing active advertisers 75% year-over-year, that actually helps with enabling, you know, if you were to move the ad load lever, you know, like giving you the diversity to still maintain performance. Just know that there are other levers that we focus on more than ad load. Like, our strategy is not to increase ad load.

Jen Wong: You know, as you increase the ad relevancy, which we do through our ML work, and we increase the diversity of advertisers in our marketplace, which we're doing, we said we're growing active advertisers 75% year-over-year, that actually helps with enabling, you know, if you were to move the ad load lever, you know, like giving you the diversity to still maintain performance. Just know that there are other levers that we focus on more than ad load. Like, our strategy is not to increase ad load.

Speaker #5: And to make the value of every impression more valuable through more competition and diversity, through stronger ML optimization, and hard marketing outcomes, more clicks, more conversions, more installs per impression.

Speaker #5: So that the marketer we increase our inventory of outcomes versus our inventory of impressions. Obviously, impressions will grow, especially with that underlying user growth.

Jennifer Wong: Our strategy is to grow users, all the things that Steve talked about, where we think we have a 10x opportunity there, and to make the value of every impression more valuable through more competition and diversity, through stronger ML optimization and hard marketing outcomes, more clicks, more conversions, more installs per impression, so that the marketer. You know, we increase our inventory of outcomes versus our inventory of impressions. Obviously, impressions will grow, especially with that underlying user growth, but we're very focused on the value that you get from the impression.

Jen Wong: Our strategy is to grow users, all the things that Steve talked about, where we think we have a 10x opportunity there, and to make the value of every impression more valuable through more competition and diversity, through stronger ML optimization and hard marketing outcomes, more clicks, more conversions, more installs per impression, so that the marketer. You know, we increase our inventory of outcomes versus our inventory of impressions. Obviously, impressions will grow, especially with that underlying user growth, but we're very focused on the value that you get from the impression.

You know, still substantially lower um, and overall on Reddit, we actually don't even have ads in certain, you know, high high, you know, growing surfaces like search for example. So overall I'd say I actually feel comfortable and absolute basis of the ad experience is there actually is not high ad load, but that aside um, you know, we we, we test this all the time and I think we're very thoughtful about it, you know, as you increase the ad relevancy, which we do through our ml work, and we increase the diversity of advertisers in our Marketplace, which are doing. We said we're growing active, advertisers 75% year-over-year. Um, that actually helps with enabling, you know, if you were to move the ad load lever, um, you know, uh, like giving you the diversity to still maintain performance. So, um, just know that there are other levers that we focus on more than adlao like our strategy is not to increase.

Speaker #5: But we're very focused on the value that you get from the impression.

Speaker #1: You are next question comes from the line of Tom Champion with Viper Sandler. Please go ahead.

Speaker #8: Hi. Good afternoon. Just curious, if you could talk about the monetization trends between US logged in and logged out users? Just curious if those are converging at all.

Speaker #8: And then maybe for Jen, just any thoughts on the ad market? Anything looking wonky from the high oil prices or travel interruptions overseas? Just curious, any general comments there?

Our strategy is to grow users. All the things that we've talked about, where we think we have a 10x opportunity there, and to make the value of every impression more valuable through more competition and diversity, through stronger ML optimization and hard marketing outcomes—more clicks, more conversions, more installs per impression. So that the marketer, you know, we increase our inventory of outcomes,

Um, versus our inventory of Impressions, obviously Impressions will grow, especially with that, underlying user growth, but we're very focused on the value that you get from the impression.

Speaker #8: Thank you.

Operator: Your next question comes from the line of Tom Champion with Piper Sandler. Please go ahead.

Speaker #5: Sure. So for logged in, logged out, which we don't there's been a lot of time on it. I guess the way we think about it is the value of an impression.

Your next question comes from the line of Tom Champion with Piper Sandler. Please go ahead.

Tom Champion: Hi, good afternoon. Just curious if you could talk about the monetization trends between US logged in and logged out users. Just curious if those are converging at all. Maybe for Jen, just any thoughts on the ad market, anything looking wonky from the high oil prices or travel interruptions overseas. Just curious, any general comments there. Thank you.

Speaker #5: And so the value of impressions is actually pretty consistent across our two main surfaces, the feed and our conversation page. And the only reason why logged in users you'd say have a higher RPU than a logged out user is just because they spend more time and they see more impressions.

Hi, good afternoon. Um, just curious, if you could talk about the monetization trends between us logged in and logged out,

Users, just just curious if those are converging at all. Um and then maybe for Jen just any thoughts on the ad Market. Um, anything

Speaker #5: But the because of the time spent and the engagement. But the impressions are actually pretty equal in terms of their value. So there's no differential in our ability to monetize any impression against those users.

Jennifer Wong: Sure. For logged in and logged out, which we don't, you know, we spend a lot of time on it. I guess the way we think about it is the value of an impression. The value of impressions is actually pretty consistent across our two main surfaces: the feed and our conversation page. The only reason why logged in users, you know, would use to have a higher ARPU than a logged out user is just because they spend more time and they see more impressions. The, because of the time spent and the engagement, but the impressions are actually, you know, pretty equal in terms of their value. There's no differential in our ability to monetize any impression against those users. There's no difference. We do monetize both types of users.

Jen Wong: Sure. For logged in and logged out, which we don't, you know, we spend a lot of time on it. I guess the way we think about it is the value of an impression. The value of impressions is actually pretty consistent across our two main surfaces: the feed and our conversation page. The only reason why logged in users, you know, would use to have a higher ARPU than a logged out user is just because they spend more time and they see more impressions. The, because of the time spent and the engagement, but the impressions are actually, you know, pretty equal in terms of their value. There's no differential in our ability to monetize any impression against those users. There's no difference. We do monetize both types of users.

Uh, looking wonky from the higher oil prices or um, travel interruptions overseas just just curious any, uh, General comments there. Thank you.

Speaker #5: There's no difference. And we do monetize both types of users. We have great contextual signal on all our users. And then obviously, for and obviously, we have history on logged out users and even more, in terms of logged in users, because they subscribe to communities, etc.

Sure. Um, so for logged in and logged out, um, which well, you know, there's been a lot of time on it. I guess the way we think about it is, uh, the value of an impression. And so the value of Impressions is actually pretty consistent across our 2 main surfaces, the speed, and our conversation page,

Speaker #5: In terms of the ad market, look, we've seen this before. There's volatility in the backdrop. Geopolitical. I would say we haven't seen anything acute in any vertical.

And, um, the only reason why logged in users, you know, would they have a higher rpu than a logged out? User is just because they spend more time, and they see more impressions

Speaker #5: But we have heard from our partners is that some are planning on shorter cycles. They're planning month to month. They don't have as much visibility.

Jennifer Wong: We have great contextual signal on all our users. Obviously, you know, obviously we have history on logged out users and even more in terms of logged in users because they subscribe to communities, et cetera. In terms of the ad market, look, we've seen this before. There's, you know, volatility in the backdrop, you know, geopolitical. I would say we haven't seen anything acute in any vertical. What we have heard from our partners is that some are planning on shorter cycles. They're planning month to month. They don't have as much visibility. No material change in their commitments and their outlook and, you know, what they're working on. Just that it might be shorter timeline as they sort of assess the market. You know, we're staying close to our customers, helping them through it with insights from Reddit.

Jen Wong: We have great contextual signal on all our users. Obviously, you know, obviously we have history on logged out users and even more in terms of logged in users because they subscribe to communities, et cetera. In terms of the ad market, look, we've seen this before. There's, you know, volatility in the backdrop, you know, geopolitical. I would say we haven't seen anything acute in any vertical. What we have heard from our partners is that some are planning on shorter cycles. They're planning month to month. They don't have as much visibility. No material change in their commitments and their outlook and, you know, what they're working on. Just that it might be shorter timeline as they sort of assess the market. You know, we're staying close to our customers, helping them through it with insights from Reddit.

Speaker #5: No material change in their commitments and their outlook and what they're working on. But just that it might be shorter timeline as they sort of assess the market.

Speaker #5: And we're staying close to our customers, helping them through it with insights from Reddit. That's actually been very helpful in this moment. But overall, the market seems pretty stable.

But the, uh, because of the time spent and the engagement, but the impressions are actually, you know, pretty equal in terms of their value. So there's no differential in our ability to monetize any impression against those users. There's no difference and we do monetize, both types of users. We have great contextual signal on all our users. And then obviously for and, you know, obviously we have history on logged out users and even more in terms of logged in users, because they subscribe to communities Etc.

Speaker #5: Just maybe a little bit more month to month with lower visibility.

You know, volatility in the backdrop. Um, you know, geopolitical

Speaker #8: Thanks, Jen.

Speaker #1: You are next question comes from the line of Mark Mahaney with Evercore. Please go ahead.

Speaker #8: Okay. I'll try two questions. I think when we focus on this DAU over the weekly users, we're just trying to get a sense of engagement.

I would say, we haven't seen anything acute in any vertical, but what we have heard from our partners is that some have shorter cycles—they're planning month to month, and they don't have as much visibility.

Speaker #8: I imagine there's a series of metrics that you track internally that track engagement. Could you just talk about those, at least qualitatively? Maybe it's hours per session or minutes per session or something else, something that touches on the quality of engagement.

Jennifer Wong: That's actually been very helpful in this moment. Overall, the market seems pretty stable, just maybe a little bit, you know, more month to month with lower visibility.

Jen Wong: That's actually been very helpful in this moment. Overall, the market seems pretty stable, just maybe a little bit, you know, more month to month with lower visibility.

Tom Champion: Thanks, Jen.

No material change in their commitments, and their Outlook, and you know what they're working on. But just that it might be shorter timeline as they sort of assess the market and you know, we're saying close to our customers, helping them through it with insights from Reddit. That's actually been very helpful in this moment. Um but overall the market seems pretty stable just maybe a little bit, you know, more month-to-month with low visibility.

Speaker #8: Could you just talk about whether there's some trend there that we can't really see from the disclosures that we have? And then just on Reddit max, and Jen, I know you talked about this earlier, but where are we in terms of the adoption of Reddit max?

Thanks Jen.

Operator: Your next question comes from the line of Mark Mahaney with Evercore. Please go ahead.

Your next question comes from the line of Mark mahaney with evercore. Please go ahead.

Mark Mahaney: Okay, I'll try two questions. I think when we focus on this DAU over the weekly users, we're just trying to get a sense of engagement. I imagine there's a series of metrics that you track internally that track engagement. If you just talk about those, at least qualitatively, like, you know, maybe it's, maybe it's, maybe hours per session or, you know, or minutes per session or something else, something that touches on the quality of engagement. Could you just talk about whether there's some trend there that, you know, we can't really see from the disclosures that we have?

Speaker #8: And how do you increase that adoption across your advertiser base? Thank you.

Speaker #5: Sure, Mark. Thank you. Okay. So on engagement metrics, there are a couple of key ones we look at. So one is new user retention.

Speaker #5: So does a user come back after seven days, after 30 days, after 90 days? That's our core measure of kind of product quality and stickiness.

Speaker #5: The second we look at is frequency. So how many days per week do users come to Reddit? We have a lot of users that if you were to do a histogram of days per week, the two tallest bars would be one day and seven day.

Mark Mahaney: Just on Reddit Max, and Jen, I know you talked about this earlier, but where are we in terms of the adoption of Reddit Max, and how do you increase that adoption across your advertiser base? Thank you.

Okay, I'll try 2 questions. Uh, I think when we focus on this, um, Dau over the weekly users, we're just trying to get a sense of Engagement. I imagine, there's a series of metrics that you track internally, that that track engagement that if you just talk about those at least qualitatively like, um, you know, maybe it's, um, maybe it's, uh, maybe hours per session or, you know, or minutes per session or or something else. Something that that touches on the quality of Engagement, could you just talk about whether there's some Trend there that, you know, we can't really see from the the disclosures that we have and then just on Reddit Max. Uh, and Jen, I know you talked about

This earlier but where uh where are we? In terms of the adoption of Reddit Max and how do you increase that adoption across your Advertiser base? Thank you.

Speaker #5: And I think this aligns with our intuition on Reddit. Once we've got you, we've really got you. And then we have a lot of people bouncing off us from search or trying Reddit out.

Steve Huffman: Sure, Mark. Thank you. Okay. On engagement metrics, there are a couple of key ones we look at. One is new user retention. Does the user come back after 7 days, after 30 days, after 90 days? That's our core measure of kind of product quality and stickiness. The second we look at is frequency, so how many days per week do users come to Reddit? We have a lot of users, but if you were to do a histogram of days per week, the two tallest bars would be 1 day and 7 day. I think this aligns with our intuition on Reddit. Once we've got you, we've really got you. We have a lot of people, you know, bouncing off us from search or trying Reddit out.

Speaker #5: So converting more of those one days to seven days, I think, is a big opportunity. We're starting to mature our thinking around sessions. So sessions per day.

Sure. Mark thank you. Um okay. So on engagement metrics, there are a couple key ones we look at. Um so 1 is New Year's retention so there's a user come back.

Speaker #5: That's relatively I think a new way of looking at, a new way of looking at it for us. But again, that'll be a measure of the feed quality in general, retention.

After 7 days after 30 days after 90 days, that's our core measure of kind of product quality and stickiness, the second we look, at is frequency. So, how many days per week 2 users come to Reddit? Um,

Speaker #5: So I think all of these things are important. The most consistent, and I think most valuable long-term, will be new user retention. We don't report it, though you can peek at it through some third-party measurement.

Steve Huffman: Converting more of those 1 day to 7 days, I think is a big opportunity. We're starting to mature our thinking around sessions, so sessions per day. That's relatively, I think, a new way of looking at it for us. Again, that'll be a measure of the speed, quality and general retention. I think all of these things are important. The most consistent and I think most valuable long term will be new user retention. We don't report it, though you can peek at it through some third-party measurement, which I think will show kind of where we are in maybe relative to other folks. Again, the strategy on all of these things is quality, it's performance, it's relevance, all of the basics.

Speaker #5: Which I think will show kind of where we are in maybe relative to other folks. And again, the strategy on all of these things is quality.

Uh, we have a lot of users that if if you were to do a histogram of days per week, the 2 tallest bars would be 1 day and 7 Day. Um and I think this aligns with our intuition on Reddit, once we've got you, we've really got you. Um, and then we have a lot of people, you know, bouncing off us from search or trying Reddit out. So converting more of those 1 days to 7 days. I think it's a big opportunity. Um, we're starting to uh,

Speaker #5: It's performance. It's relevance. All of the basics. I think there's a lot of opportunity on each of these things. Just on Reddit max, so it's a top priority for our sales team in adoption this year.

Mature, our thinking around sessions, so sessions per day. Um,

Speaker #5: They started with converting advertisers. There's thousands of advertisers on max already, but there's many more to convert still. And we do want to move toward new advertisers onboarding directly into max.

That's relatively uh I think a new way of looking at new way of looking at it for us. Um but again that'll be a measure of the speed quality in general retention. So I think all of these things are important, the most consistent and I think most valuable long term will will be new use of retention. We don't report it. So you can peek at

Speaker #5: We're working on putting max in the API as well. So that partners who transact that way have access to max. So look, it's still early.

Speaker #5: It just was launched in January. So it's still early. This is a multi-year journey in adoption that those before us with PMAX and Advantage Plus have been at for many years.

Steve Huffman: I think there's a lot of opportunity on each of these things.

Jennifer Wong: Just on Reddit Max. It's a top priority for our sales team in adoption this year. They started with converting advertisers. There's thousands of advertisers on Max already, but there's many more to convert still. We do want to move toward new advertisers onboarding directly into Max. We're working on putting Max in the API as well, so that partners who transact that way have access to Max. Look, it's still early. It's, you know, just was launched in January, it's still early. This is a multi-year journey in adoption that those before us with PMax and Advantage Plus have been at for many years. I'm very pleased with the adoption rate and the interest and the benefits that people are getting, our customers are getting. That's very encouraging.

Through some third-party measurement, um, which I think will show kind of where we are in maybe relative to other folks. Um, and again, the strategy on all of these things is quality, it's performance, it's relevance—uh, all of the basics. I think there's a lot of opportunity on each of these things.

Jen Wong: Just on Reddit Max. It's a top priority for our sales team in adoption this year. They started with converting advertisers. There's thousands of advertisers on Max already, but there's many more to convert still. We do want to move toward new advertisers onboarding directly into Max. We're working on putting Max in the API as well, so that partners who transact that way have access to Max. Look, it's still early. It's, you know, just was launched in January, it's still early. This is a multi-year journey in adoption that those before us with PMax and Advantage Plus have been at for many years. I'm very pleased with the adoption rate and the interest and the benefits that people are getting, our customers are getting. That's very encouraging. We are less than, you know, half a year into this.

Um, just on Reddit Max.

So it's a top priority for our sales team.

Speaker #5: But I'm very pleased with the adoption rate and the interest and the benefits that people are getting. Customers are getting. And so that's very, very encouraging.

Speaker #5: But we a year into this.

Speaker #8: Okay. Thanks, Jen. Thanks, Steve.

Speaker #1: You are next question comes from John Kulantoni, with Jefferies. Please go ahead.

Speaker #9: Great. Thanks for taking my questions. I wanted to ask about international users. Can you talk through how engagement has trended across markets that have undergone a machine translation?

Speaker #9: And if you've seen any notable shift in logging and adoption or localized content creation once availability of the local language expands? And second, following up on the logged in versus logged out users, is there any component of monetization or the logged in related to personalization since you have more data on their usage trends and interests?

Jennifer Wong: We are less than, you know, half a year into this.

Mark Mahaney: Okay. Thanks, Jen. Thanks, Steve.

In adoption this year, they started with converting advertisers. There's thousands of advertisers on Max already, but there's many more to convert still. And, um, we do want to move toward new advertisers on boarding directly into max. Um, we're working on putting Maxx in the API as well. Um, so that partnership transact that way I have access to Max. So okay, it's still early it's, you know, just was launched in in January, so it's still early. This is a multi-year journey in adoption that goes before us with Pax and Advantage, Plus have been at for many years. Um, but I'm very pleased with the adoption rate and the interest and the benefits that people are getting uh customers are getting and so that's very, very encouraging but we are less than you know, half a year into this

Okay. Thanks Jen. Thanks Steve.

Operator: Your next question comes from John Colantuoni with Jefferies. Please go ahead.

Your next question comes from John Coolant, Tony with Jeffrey's. Please go ahead.

John Colantuoni: Great. thanks for taking my questions. Wanted to ask about international users. Can you talk through how engagement has trended across markets that have undergone a machine translation, and if you've seen any notable shift in logging in adoption or localized content creation once availability of the local language expands? Second, following up on the logged in versus logged out users, is there any component of monetization for the logged in related to personalization since you have more data on their usage trends and interests, just sort of outside of the impressions themselves? Thanks.

Speaker #9: Just sort of outside of the impressions themselves. Thanks.

Speaker #8: Sure. Thanks, John. So on international, what we've learned is every market is different. Machine translation is a great starting point for building the content base.

Speaker #8: But for the long term, what's most important is getting more native communities or communities created in-country with content consumed locally in-country. And so we've seen the effects of that be different in different markets.

Great. Uh, thanks for taking my questions. I wanted to ask about International users. Can you talk through how engagement has trended across markets that have undergone a machine translation? And if you've seen any notable shift in logging and adoption or localized content, creation, once availability of the local language expands

Out users is there any component of monetization or the logged in related to personalization since you have more data on their usage Trends and interest?

Speaker #8: And what we've learned there is we need to have a focus on basically what we call a community success. So how easy is it to create and grow a community on Reddit?

Just sort of outside of the Impressions themselves. Thanks.

Steve Huffman: Sure. Thanks, John. On international, what we've learned is every market is different. Machine translation is a great starting point for building the content base. For the long term, what's most important is getting more native communities, like communities created in country with content consumed locally in country. We've seen the effects of that be different in different markets. What we've learned there is we need to have a focus on basically what we call community success. How easy is it to create and grow a community on Reddit? This includes in the US. That's one of the dimensions to our product work, is making it easier to create and grow subreddits. I think there's a lot of headroom here as well, and that'll affect Reddit in all markets.

Sure, thanks Sean. So an international.

Speaker #8: And this includes in the US. And so that's one of the dimensions to our product work. Is making it easier to create and grow subreddits.

Speaker #8: I think there's a lot of headroom here as well. And that'll affect Reddit in all markets. On logged in and logged out, it's exactly as you would expect.

What we've learned is every Market is different. Machine translation is a, is a great starting point for building the content base. Um, but for the long term, what's most important is getting a more native communities, like communities, created in country, with content consumed locally in country.

Speaker #8: As Jen was saying earlier, logged in users spend more time on Reddit. And that's because as you employ on your question, we know them better.

Speaker #8: And so we interests. We can do personalization. And that, of course, just improves retention and time spent. So seeing more users in the app, more users logging in, more users getting the personalization faster, drives engagement and then therefore monetization.

Speaker #8: Again, all roads lead to basically the same strategy, which is help users find content that's relevant to them, and come back to the app more often.

Steve Huffman: On logged in, logged out, it's exactly as you would expect. As Jen was saying earlier, logged in users spend more time on Reddit, and that's because, as you imply in your question, we know them better. We know their interests. We can do personalization, and that, of course, just improves retention and time spent. Seeing more users in the app, more users logging in, more users getting the personalization faster, drives engagement and then therefore monetization. Again, all roads lead to basically the same strategy, which is, help users find content that's relevant to them and come back to the app more often.

And so we've seen, uh, the effects of that be different in different markets. Um, and what we've learned there is, we need to have a focus on basically what we call a community success. So how easy is it to create and grow a community on Reddit, uh and this includes in the US. And so that's 1 of the dimensions to our, our product work, um, is making it easier to create and grow subreddits. Um, I think there's a lot of Headroom here as well, and that will affect Reddit in all markets.

Speaker #1: You are next question comes from the line of Justin Post, with Bank of America. Please go ahead.

Speaker #10: Thank you. A couple of questions. Just wondering if you can update us on how the generative AI engines are using your data? And is that increasing since the deal started over two years ago?

Speaker #10: Any changes or evolution in the partnership on how they're using your data and the outputs they're providing? And then second, I think Google made some algorithm changes in April.

Speaker #10: Maybe there's a question for Drew. But any impacts on usage, retention, or time spent, or anything like that? Thank you.

Um, on login logged out, it's exactly as you would expect. Um, as Jen was saying earlier, uh logged in user spend more time on Reddit. And that's because as you employ in your question, uh, we know them better. And so we can, uh, we know their interests, we can do personalization. And that, of course, just improves retention and and time spent. So, uh, seeing more users in the app more users logging in more users getting the personalization faster, uh, drives engagement and then therefore monetization again all roads lead to uh basically the same strategy, which is um help users find content, that's relevant to them and come back to the app more often.

Operator: Your next question comes from the line of Justin Post with Bank of America. Please go ahead.

Speaker #8: Okay. Look, Reddit has been for a while and continues to be the most cited source in AI citations across all platforms. We have also for quite some time been in the word Reddit has been one of the most searched words on Google.

Justin Post: Thank you. A couple questions. Just wondering if you can update us on how the generative AI engines are using your data, and is that increasing, since the deal started, you know, over 2 years ago? Any changes or evolution in the partnership, on how they're using your data and the outputs they're providing? Then second, I think Google made some algorithm changes in April. Maybe this is a question for Drew, but any impacts on usage, retention or time spent or anything like that? Thank you.

Speaker #8: It's been in the top 10, I think, for a couple of years now. So both AIs and internet consumers love Reddit content. This is because that basically human verification of what AI is telling people is really important.

Steve Huffman: Okay. Reddit has been for a while and continues to be the most cited source in AI citations across all platforms. We have also for quite some time. The word Reddit has been one of the most searched words on Google. It's been in the top 10, I think, for a couple years now. Both AIs and internet consumers love Reddit content. This is because that basically human verification of what AI is telling people is really important. At the end of the day, you can get a surface level answer from AI, but you need the context. For many questions, there isn't an answer. There are multiple perspectives describing that answer, and multiple reasons why different parts of that answer might be relevant to you or not.

Your next question comes from the line of Justin post with Bank of America. Please go ahead. Thank you. A couple questions. Just wondering if you can update us on how the generative AI engines are using your data. And is that increasing, uh, since uh, the Deal started, you know, over 2 years ago, any any changes or evolution in in the partnership, uh, uh, on how they're using your data and, and, and the outputs, they're providing. And then second, I think Google made some algorithm changes in April. Um, maybe there's a question for Drew, but in any impacts on, on usage, retention, or or time spent or anything like that. Thank you.

Speaker #8: At the end of the day, you can get a surface-level answer from AI, but you need the context. For many questions, there isn't an answer.

Speaker #8: There are multiple perspectives describing that answer. And multiple reasons why different parts of that answer might be relevant to you or not. For example, take a simple question.

Okay, um look read it has been for a while and continues to be the most uh cited Source in AI citations across all platforms. Um, we have also for quite some time, uh, been in the word Reddit has been 1 of the most

Speaker #8: What movie should I watch tonight? Well, it depends what you're into. How old you are? All these things. So Reddit is the best at providing those answers and we've seen basically across the internet people increasingly crave the human perspective that Reddit provides.

Searched words on Google. It's been in the top 10, I think for a couple of years now. So, uh, both Ai and internet consumers. Love Reddit content. Um, this is because, uh, that that

Speaker #8: Google algorithm change. These things are business as usual for us. There are always puts and takes. So we see these things sometimes they help, sometimes they hurt.

Basically human verification of what AI is telling people is really important um at the end of the day um you can get a surface level answer from AI but you need the context.

Speaker #8: They almost never stand out on our traffic long term. So we saw some changes in the quarter. But nothing further to comment on.

Steve Huffman: For example, take a simple question: What movie should I watch tonight? Well, it depends what you're into, how old you are, all these things. Reddit is the best at providing those answers, and we've seen basically across the Internet, people increasingly crave the human perspective that Reddit provides. Google algorithm change, these things are business as usual for us. There are always puts and takes. We see these things. Sometimes they help, sometimes they hurt. They almost never stand out on our traffic long term. We saw some changes in the quarter, but nothing further to comment on.

Steve Huffman: For example, take a simple question: What movie should I watch tonight? Well, it depends what you're into, how old you are, all these things. Reddit is the best at providing those answers, and we've seen basically across the internet, people increasingly crave the human perspective that Reddit provides. Google algorithm change, these things are business as usual for us. There are always puts and takes. We see these things. Sometimes they help, sometimes they hurt. They almost never stand out on our traffic long term. We saw some changes in the quarter, but nothing further to comment on.

Speaker #1: You are next question comes from the line of Benjamin Black, with Deutsche Bank. Please go ahead.

Speaker #9: Great. Thank you for taking my question. So Steve, you mentioned that. Authentic human connection and that content is your key differentiator. So could you maybe talk about the contribution rates on the platform?

Speaker #9: How have those been trending? What are you doing to support growth there? And then secondly, maybe a slightly different take on a data licensing question.

Um, for many questions, there isn't an answer—there are multiple perspectives, um, describing that answer, um, and multiple reasons why different parts of that answer might be relevant to you or not. For example, take a simple question: what movie should I watch tonight? Well, it depends—what you're into, how old you are, all these things. So, uh, Reddit is the best at providing those answers. Um, and we've seen basically across the internet, uh, people increasingly crave, uh, the human perspective that Reddit provides. Um, Google algorithm change—these things are, um, business as usual for us. There are always puts and takes, um, so, uh, we see these things; sometimes they help, sometimes they hurt, they almost never...

Speaker #9: What criteria are you looking for other than dollars to perhaps go from two partners to maybe three to four data licensing partners? Thank you very much.

Stand out on our traffic, long term. Um, so we saw some changes in the quarter but nothing further to comment on

Operator: Your next question comes from the line of Benjamin Black with Deutsche Bank. Please go ahead.

Speaker #8: Sure. Thanks, Ben. So we've touched on the call actually the three pillars of our product strategy. So we spend most of our time in these contexts talking about the onboarding and performance and retention.

Your next question comes from the line of Benjamin black. What Deutsche Bank, please go ahead.

Benjamin Black: Great. Thank you for taking my question. Steve, you mentioned that authentic human connection and that content is your key differentiator. Can you maybe talk about the contribution rates on the platform? You know, how those have been trending? You know, what are you doing to support growth there? Secondly, maybe a slightly different take on a data licensing question. What criteria are you looking for sort of other than dollars to perhaps go from, you know, 2 partners to maybe 3 to 4 data licensing partners? Thank you very much.

Speaker #8: But we had a question about basically the community ecosystem. And how important that is for both international and domestic growth. And then your question is on the basically the content ecosystem.

Speaker #8: So communities attract users. Users create content. That's one flywheel. And the second is the users create content. Content attracts users. That's another area of a lot of opportunity on Reddit.

Steve Huffman: Sure. Thanks, Ben. We've touched on the call, actually, the three pillars of our product strategy. We spend most of our time in these contexts talking about the onboarding and performance and retention, but we had a question about basically the community ecosystem, and how important that is for both international and domestic growth. Your question is on the, basically the content ecosystem. Communities attract users create content. That's one flywheel. The second is the users create content attracts users. That's another area of a lot of opportunity on Reddit. Things we look at there are post success rate. What percent of posts successfully survive on Reddit, so they don't get removed by a moderator, that sort of thing. That's been a focus of ours.

Thank you very much.

Speaker #8: So things we look at there are post-success rate. So what percent of posts successfully survive on Reddit? So they don't get removed by a moderator, that sort of thing.

Sure. Thanks been so.

Speaker #8: That's been a focus of ours. So things like post guidance, which is an LLM that basically helps a user navigate the rules of Reddit have been a big driver there.

We've touched on the call, actually the 3 pillars of our product strategy. So, we spend most of our time in these contexts, talking about, um, the onboarding and performance and retention. But we had a question about basically the community ecosystem. Um, and

Speaker #8: We're making improvements to post creation in this quarter. And so I think there's a lot of opportunity there as well. And then some maybe unique to Reddit things like the age and karma limits.

Speaker #8: So a lot of communities don't let new users submit, which makes it hard to grow new users. So working our way out of age and karma limits with better AI-powered spam protection to help protect communities from bad new users, like spammers, but be welcoming to good new users.

And how important that is for both International and domestic growth. And then your question is on the basically, the content ecosystem. So communities, attract users users create content. Um, that's 1 flywheel in. The second is the users create content content attracts users? Um, that's another area of a lot of opportunity on Reddit. So, um, things we look at there are, uh, post success rate, so what percent of posts, um,

Steve Huffman: Things like post guidance, which is an LLM that basically helps a user navigate the rules of Reddit, have been a big driver there. We're making improvements to post creation in this quarter, I think there's a lot of opportunity there as well. Some, you know, maybe unique to Reddit things like the age and karma limits. A lot of communities don't let new users submit, which makes it hard to grow new users. Working our way out of age and karma limits with better AI-powered spam protection to help protect communities from bad new users, like spammers, but be welcoming to good new users. There's a lot there as well.

Speaker #8: So there's a lot there as well. Maybe next quarter we can spend more time on the community and content contribution because those are both important aspects of Reddit that we don't usually get into on these calls.

Speaker #8: And second, on data licensing, things other than dollars. Look, obviously, it's citations. It's mind share. It's just general companies have the data centers, the foundational models, and so our partnerships with all of these companies are multifaceted.

Uh, successfully survive on Reddit. So they don't get removed by a moderator that sort of thing. Um, that's been a focus of ours. So things like post guidance, which is an llm that basically helps the user navigate. The rules of Reddit have been a big driver there. Um, we're making improvements to post creation, um, uh, uh, in this quarter. And so, I think there's a lot of opportunity there as well. Um, and then some, you know, maybe

You need to read it.

Speaker #8: And so there's a lot we can do in terms of beyond just the dollars. It's how can these relationships help Reddit achieve its mission?

Steve Huffman: Maybe next quarter we can spend more time on the community and content contribution, because those are both important aspects of Reddit that we don't usually get into on these calls. Second, on data licensing, you know, things other than dollars. Look, obviously it's citations, it's mind share, it's just general partnership. Look, these companies have, you know, the data centers, the foundational models. Our partnerships with all of these companies are multifaceted. There's a lot we can do in terms of, you know, beyond just the dollars. It's how can these relationships help Reddit achieve its mission. So bringing in new users, advancing our own AI technology.

Speaker #8: So bringing in new users, advancing our own AI technology. So things like the machine translation, the LLM-powered onboarding, all of the safety things, all of these of part of what we get through these relationships, which is why they're so meaningful to us beyond just the corporate relationship or the business relationship.

Things like the age and Karma limits. So, um, a lot of communities don't let new users submit. Um, which makes it hard to grow new users. So working our way out of age and Karma limits with better. AI powered spam protection to help protect communities. From Bad. New users, like spammers but becoming to good new users. So there's a lot there as well. Um, maybe next quarter, we can spend more time on the community and content contribution because those are both important aspects of Reddit that we don't usually get into on these calls. Um, in second, on data, licensing, data licensing, you know, things other than dollars, like

Speaker #1: We have time for one more question. And that question comes from Naved Khan, with B. Reilly Securities. Please go ahead.

Speaker #8: Great. Thank you very much. The two-part question. One, on the rollout of answers plus search that you did in the US. Curious if it helped in increasing the session time or what are the benefits you may be seeing there or not maybe?

Steve Huffman: Things like the machine translation, the LLM-powered onboarding, all of the safety things, all of these things are kind of, you know, part of what we get through these relationships, which is why they're so meaningful to us beyond just the, you know, the corp dev relationship or, or the business relationship.

Speaker #8: So that's one. The second question I had is just on the international markets and I think usually you do not start to monetize markets until they reach certain scale in terms of reach and usage.

Obviously, it's it's citations its mind, share, it's, it's general partnership. Um, with these companies have, uh, you know, the data centers, the foundational models. And so, uh, our Partnerships with all of these companies, um, are multifaceted, and so, there's a lot we can do in terms of, um, you know, beyond just the dollars. It's how can, uh, these relationships help Reddit achieve its Mission. Um, so bringing in new users, um, advancing our own AI technology. So things like the, uh, machine translation. The llm powered onboarding, the all of the safety things, all of these things are kind of, you know, part of what we get through these relationships, which is why they're so meaningful to us Beyond just the, you know, the Corp that relationship or, or, or the business relationship,

Operator: We have time for one more question. That question comes from Naved Khan with B. Riley Securities. Please go ahead.

Speaker #8: So of the markets that you are in currently, how many are you starting to monetize? Give us your thoughts there. Sure. So on search, search we've seen great performance.

We have time for 1, more question. And that question comes from nevid Khan with B Riley Securities. Please go ahead.

Naved Khan: Great. Thank you very much. Two-part question. One on the rollout of Answers plus Search that you did in the US. Curious if it helped in increasing the session time or what are the benefits you may be seeing there or not maybe. So that's one. The second question I had is just on the international markets. I think usually you do not start to monetize markets until they reach certain scale in terms of reach and usage. So of the markets that you are in currently, how many are you starting to monetize? Give us your thoughts there.

Speaker #8: Search now, search wow. Search queries, all of meaningfully year over year. Search is a great driver of retention. Search has also been a driver of DAU.

Speaker #8: The search team is, quite frankly, I think, doing a great job. If you use Reddit Answers, you can see a better integrated into the product.

Speaker #8: It itself has more agentic behavior behind the scenes. So things like you can now ask it to compare two things by, "Should I watch movie A or movie B?" And we're now integrating the product search catalog.

Okay. Um, thank you very much. Um, the 2-part question 1 on the on the roll out of answers plus search that you did in the US. Uh, curious if it if it helped uh, in increasing the the session time or uh what are the benefits you may be seeing there or or not? Maybe uh, that's 1. The second question I have is just on the international markets and I think usually you you do not start to monetize markets until they reach certain scale in terms of uh reach and usage. Uh, so of the markets that you are in currently. Uh, how many are you starting to monetize this USC thoughts there?

Steve Huffman: Sure. On Search, we've seen great performance. Search style, search wow, search queries all up meaningfully year-over-year. Search is a great driver of retention. Search has also been a driver of DAU. The Search team is quite frankly, I think, doing a great job. If you use Reddit Answers, you can see it better integrated into the product. In itself has more agentic behavior behind the scenes. Things like you can now ask it to compare two things, right? Should I watch movie A or movie B? We're now integrating the product search catalog. When you get answers from Reddit about, you know, let's say, what's the best headphone, actually getting the links to the products as well.

Um, sure. So on

search, we've seen great performance. Um,

uh,

Speaker #8: So when you get answers from Reddit about, let's say, what's the best headphone, actually getting the links to the products as well. So search is one of the kind of main new use cases of Reddit.

Searched out search wow um search queries all up meaningfully. Um year-over-year. Um search is a great driver of retention. Um search is also been a driver of Dau. Um the search team is is

Speaker #8: And across the board, it's a contributor to basically all of the things we care about in addition to search itself.

Speaker #1: Regarding the international markets, so we have direct sales footprint across all channels in the US, Canada, UK, covering continental Europe, as well as Australia, through with a little bit of the APAC suite from Singapore.

Quite frankly, I think doing a great job. Uh, if you use Reddit answers, you can see it better integrated into the product. Um, it itself is has more agentic behind the scenes, so things like you can. Um, now ask it to compare 2 things, which I watch movie A or movie b. Um,

Steve Huffman: Search is one of the kind of main new use cases of Reddit, and across the board is a contributor to, you know, basically all of the things we care about in addition to search itself.

And we're now integrating the product search catalog. So when you get answers from Reddit about, you know, let's say, what's the best headphone, actually getting the links to the products as well. So,

uh,

Search is one of the kinds of

Speaker #1: That's where we have direct sales across actually both large customer and our scale channel, which includes SMB and mid-market. We then have channel partners that other areas, other regions where we're able to bring in active advertisers who might want cross-border export.

main new use cases of Reddit, um, and across the board. So it's a contributor to, you know, basically all of the things we care about in addition to search itself

Jennifer Wong: Regarding the international market, we have a direct sales footprint across all channels in the US, Canada, UK, covering continental Europe as well as Australia, you know, through, you know, with a little bit of the APAC suite from Singapore. That's where we have direct sales across actually both large customer and our scale channel, which includes SMB and mid-market. We then have channel partners that cover other areas, other regions where, you know, we're able to bring in active advertisers who might want cross-border export through a partner as those markets continue to grow audience. We're very thoughtful. We reevaluate this periodically in terms of our coverage model, but it's really based on how the users are growing in different areas and then we'll decide our coverage model.

Jen Wong: Regarding the international market, we have a direct sales footprint across all channels in the US, Canada, UK, covering continental Europe as well as Australia, you know, through, you know, with a little bit of the APAC suite from Singapore. That's where we have direct sales across actually both large customer and our scale channel, which includes SMB and mid-market. We then have channel partners that cover other areas, other regions where, you know, we're able to bring in active advertisers who might want cross-border export through a partner as those markets continue to grow audience. We're very thoughtful. We reevaluate this periodically in terms of our coverage model, but it's really based on how the users are growing in different areas and then we'll decide our coverage model.

we have, uh,

Speaker #1: Through a partner, as those markets continue to grow audience. So we're very thoughtful. We reevaluate this periodically. In terms of our coverage model, but it's really based on how the users are growing in different areas and then we'll decide our coverage model.

Direct sales footprint across all channels in the US, Canada, UK, covering Continental Europe, as well as Australia. Um, you know, through, you know, with a little bit of the APAC sweep from Singapore.

Speaker #2: Thank you. I would now like to turn the call back over to Steve Huffman, founder and CEO, for closing comments.

Speaker #8: Thanks, all. Appreciate the questions.

That's where we have direct sales across actually both large customer and our scale Channel which includes SMB. And mid-market, we then have Channel partners that cover other, uh, areas other regions where, you know, we're able to bring in active advertisers who might want cross border or export, um, through a partner, um, as those markets continue to grow audience. So we're very thoughtful. We re-evaluate this periodically, um, in terms of our coverage model but it's really uh, based on how the users are growing in different areas and, and then we'll decide our coverage model.

Operator: Thank you. I would now like to turn the call back over to Steve Huffman, Founder and CEO, for closing comments.

Operator: Thank you. I would now like to turn the call back over to Steve Huffman, Co-Founder and CEO, for closing comments.

Thank you. I would now like to turn the call back over to Steve Huffman founder and CEO for closing comments.

Steve Huffman: Thanks, all. Appreciate the questions.

Thanks all appreciate the questions.

Operator: This concludes Reddit's Q1 2026 earnings call. You may now disconnect.

This concludes reddit's first quarter 2026 earnings call. You may now disconnect

Q1 2026 Reddit Inc Earnings Call

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