Reddit CEO Steve Huffman explained on a recent company earnings call that Reddit serves two distinct kinds of users: the “scrolling” community and the “seeking” individuals. The former group visits Reddit regularly to engage with communities and discussions around their interests, from baking communities like r/sourdough to casual chat groups like r/popculturechat. The latter group consists of “seekers”—users who typically use Google Search with “Reddit” appended to their inquiries, looking specifically for personalized answers and authentic opinions.
Recognizing the opportunity to court this second type of user, Reddit recently deployed its AI-driven chatbot feature called “Reddit Answers.” This new tool, still currently in beta, sources and summarizes existing content directly from Reddit posts, providing concise answers to specific queries from users. Since its beta release in December, “Reddit Answers” has quickly garnered over 1 million weekly active users and expanded internationally to the United Kingdom, Australia, Canada, and India.
Huffman highlighted that previously the platform’s user experience primarily suited dedicated community members rather than those seeking specific answers through search engines. He stated that the company is actively working to better address and monetize this significant segment of new visitors. The CEO indicated plans to integrate Answers more seamlessly into Reddit’s user interface and workflow throughout 2025. Possible developments include embedding the tool directly within Reddit’s main search feature or using it to enhance the onboarding process for new users, making site navigation and exploration more intuitive and informative.
Moreover, deeper integration of Reddit Answers could enable the platform to provide summarized results externally through searches, potentially reducing Reddit’s reliance on Google Search. Huffman acknowledged that Google’s algorithm changes have historically caused fluctuations in Reddit’s visitor numbers, including a noticeable impact during the fourth quarter of last year after Google enacted significant adjustments to its search algorithms.
Despite previous volatility, Reddit posted strong financial results for its latest quarter, surpassing analyst expectations. The company reported revenue of $392.4 million, marking a 61% year-over-year increase, along with an adjusted EBITDA of $115.3 million. Daily active unique users grew significantly, reaching 108.1 million—a rise of 31% compared to the prior year. Reddit’s stock rose in after-hours trading following these announcements.
Looking forward, Reddit forecasts second-quarter revenue between $410 million and $430 million and adjusted EBITDA ranging from $110 million to $130 million.
