Reddit’s Q1 2025 earnings report reveals significant growth in user traffic and engagement, particularly among users who are not logged in. Although the report did not directly address search engines or the temporary dip in traffic in February, the rise in logged-out traffic indicates a year-over-year increase in external referrals from search engines and social media platforms.
Key Insights from Reddit’s Shareholder Letter
“For seekers, Reddit’s open nature is essential—it allows our content to surface across the open web and be easily found in search. We remain one of the last major platforms that doesn’t require you to sign in to learn something because we believe that by giving everyone access to knowledge, we are helping fulfill the purpose of the internet. This openness broadens visibility, drives awareness, and brings us new users— but it also means that some of our traffic from external sources is variable.”
Highlights of Reddit’s Q1 Performance
- Over 400 million people visit Reddit weekly, with total revenue reaching $392.4 million, marking a 61% increase from the previous year.
- More users are logged in, enhancing Reddit’s value for ad targeting and audience engagement, a positive sign for digital marketers.
- The growth in logged-out users suggests increased external referrals from search and social media, a trend that may concern publishers and SEOs.
Platform Growth and User Activity
Reddit defines its daily active users as DAUq, which stands for Daily Active Uniques. A DAUq is a user identified with a unique identifier who has visited a page on Reddit or opened a Reddit application at least once during a 24-hour period.
In Q1 2025, Reddit reported 108.1 million DAUq, a 31% increase from the same quarter last year. Weekly Active Uniques (WAUq) reached 401.3 million globally, also up 31% year-over-year.
U.S. vs. International User Growth
Both U.S. and international Daily Active Uniques saw significant increases compared to the same period last year, with international visits nearly doubling the gains in the United States.
- U.S. DAUq was 50.1 million, up 21%.
- International DAUq rose to 58.0 million, up 41%.
This trend highlights Reddit’s fastest user growth occurring outside the U.S., signaling expanding global reach and rising visibility in international markets. This may indicate growing discovery opportunities through non-U.S. referral sources and increased relevance in regions where Reddit has historically had lower reach.
Logged-In User Engagement
Logged-in users can comment, moderate, start discussions, and vote. Being logged in allows for better behavioral tracking and higher ad targeting value, making logged-in users an important metric for Reddit’s community viability.
Logged-in Daily Active Uniques (DAUq) increased in both the U.S. and internationally, with international growth outpacing the U.S. year-over-year:
- Logged-in U.S. DAUq: 23.0 million (up 19% year-over-year)
- Logged-in International DAUq: 25.8 million (up 27% year-over-year)
Growth in Logged-Out Users
The rise in overall Daily Active Uniques (DAUq) extended to logged-out users, who experienced strong year-over-year growth. This suggests Reddit remains a popular destination for reading opinions and reviews from real people. It may also indicate that search engines and social media are sending more visitors to Reddit, as those users are more likely to arrive via external referrals, although the quarterly report did not mention search traffic or referral sources.
- Logged-out U.S. DAUq: 27.1 million (up 22% YoY)
- Logged-out International DAUq: 32.2 million (up 54% YoY)
Financial Performance and Monetization
Reddit’s total revenue reached $392.4 million, a 61% increase compared to Q1 2024. Advertising revenue accounted for $358.6 million, also up 61%. Other revenue totaled $33.7 million, a 66% increase year-over-year.
Average Revenue Per Unique (ARPU) also increased:
- U.S. ARPU: $6.27, up 31%
- International ARPU: $1.34, up 22%
These increases in ARPU suggest that Reddit is improving its monetization of user activity.
Reddit also reported $115.3 million in adjusted EBITDA, which stands for earnings before interest, taxes, depreciation, and amortization. The adjusted version excludes certain non-recurring or non-cash expenses, often used to show how profitable a business is from its core operations.
- Net income: $26.2 million
- Adjusted EBITDA: $115.3 million
- Operating cash flow: $127.6 million
- Free Cash Flow: $126.6 million
- Gross margin: 90.5%
Conclusion: Reddit’s Expanding Influence
Reddit’s Q1 2025 earnings report underscores strong year-over-year growth in both logged-in and logged-out user activity, with usage rising significantly in the U.S. and even more so internationally. The company also reported a 61% increase in total revenue and positive cash flow, demonstrating that Reddit is becoming more effective at monetizing its growing user base, which is valuable information for digital marketers.
The report reflects growth in usage, revenue, and Average Revenue Per Unique (ARPU). Reddit’s expanding reach and monetization suggest it remains a relevant platform for users and a key destination for referral traffic.
