CEO Steve Huffman said search referrals were “choppy” during the second quarter and became more volatile later in the period as Google’s AI-powered search continues to evolve.
He said Reddit is prioritizing direct engagement through its app over search-driven traffic, adding that the company is “not building for drive-by traffic” but rather “a daily destination” and that direct app users are significantly more valuable than search referrals.
Earnings Snapshot
Reddit reported second-quarter earnings of $1.25 per share, beating the analyst consensus estimate of 95 cents, according to Benzinga Pro.
Revenue increased 61% year over year to $804.9 million, topping the Street estimate of $730.3 million. The quarter marked Reddit’s eighth consecutive period of revenue growth exceeding 60%.
