Reddit reported its second-quarter earnings on Thursday, highlighting a significant focus on AI-driven growth. The company’s advertising business remains its primary revenue source, generating $465 million and accounting for 93% of total revenue. This growth is supported by AI-powered marketing tools designed to enhance ad performance.
Last month, Reddit introduced two new features for advertisers. Reddit Insights analyzes billions of posts and comments to identify trends and provide real-time campaign strategy insights. Conversation Summary Add-ons allow advertisers to incorporate user discussions directly into ads, showcasing public opinions about products or brands.
The company also reported a 24% year-over-year increase in its “other revenue” category, which includes data licensing deals with AI providers. This segment grew to $35 million, up from $28.1 million in the same period last year. Reddit has already secured content licensing agreements with major AI players like Google and OpenAI, signaling a promising long-term revenue stream.
Another notable AI feature is Reddit Answers, launched in December. The tool, which provides conversational responses, has grown from 1 million to 6 million weekly users. Reddit CEO Steve Huffman mentioned plans to integrate the tool more deeply into the platform’s core search experience, aiming to make search a central feature across Reddit.