Reddit’s stock surged as much as 19% post-Q1 earnings report, showing strong revenue growth.
The company reported a 61% year-over-year revenue increase, marking consistent growth.
CEO Steve Huffman emphasized Reddit’s resilience amid tweaks to Google’s algorithm and AI search trends.
Reddit’s stock jumped by 19% after hours on Thursday after the company released its Q1 earnings report. As of publishing, it was up 7% after market close.
Reddit’s revenue increased 61% year-over-year to $392.4 million in Q1 of 2025, the company said in an earnings release. CEO Steve Huffman said in a letter to investors that this marks the third consecutive quarter of growth over 60% for Reddit.
Reddit has seen considerable growth over the past year, thanks in part to a growing relationship with Google and site traffic growth from people searching for terms on Reddit through Google search. In February, Reddit’s stock dropped more than 15% after CEO Steve Huffman said in an earnings call that Reddit saw “volatility” in traffic after Google tweaked its algorithm.
Huffman was asked how he sees “user growth going” over the rest of the year, given that Google has already changed its algorithm this year.
“We do expect some bumps along the way from Google, because we’ve already seen a few this year,” Huffman said. “This is expected in any year, but given that the search ecosystem is under heavy construction, the near term could be more bumpy than usual.”
Still, Huffman said that “short-term bumps” will not affect Reddit’s long-term strategy and growing search market opportunities. Huffman said that there is “no doubt” that AI models will change the way people search for information on the internet, but Reddit will always meet the need of people looking for the “subjective, authentic, messy, multiple viewpoints that Reddit provides.”
“In the same way that Reddit, for the last decade, has been an alternative to social media — social media being performative and manicured and Reddit being the opposite — Reddit communities and conversations will be an alternative to AI search answers,” Huffman said.
Huffman also said in the earnings call that Reddit has maintained through big cultural shifts like the rise of smartphones and the COVID-19 pandemic because “the world needs community and shared knowledge, and that’s what we do best.”
“Ever-shifting macro environments like these create both challenges and opportunities,” Huffman told investors. “We’ve grown through challenging times before people need connection and information just as much in uncertain times, and we’re well-positioned to meet this moment.”
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