The news: Reddit reported $663 million in Q1 revenues on Thursday, representing growth of 69% YoY. The majority of its revenues came from its ads business, which saw sharp gains once again.

By the numbers:

• Advertising revenues: $625 million, +74% YoY
• Daily active uniques (DAUq): 126.8, +17% YoY
• Weekly active uniques (WAUq): 493.1 million, +23% YoY
• Global ARPU: $5.23, +23% YoY

The company reported strong Q2 guidance, with estimated revenues between $715 million and $725 million, above analyst expectations of $712 million.

Why it matters: Reddit’s ad performance exceeded expectations and continues to prove that it is a strong growth engine for marketers; we forecast its US ad revenues will grow 52.6% this year to $2.31 billion after skyrocketing 72.4% in 2025. Double-digit growth will continue through 2028.