Summary by Futu AI
Reddit reported strong Q1 2025 financial results with revenue increasing 61% year-over-year to $392.4 million, driven by growth in advertising revenue and content licensing. Daily active unique users (DAUq) grew 31% to 108.1 million, while average revenue per user (ARPU) increased 23% to $3.63. The company achieved net income of $26.2 million compared to a net loss of $575.1 million in Q1 2024.Operating expenses decreased significantly to $351.4 million from $804.6 million in the prior year period, primarily due to lower stock-based compensation expenses. Gross margin improved to 90.5% from 88.6% year-over-year. The company maintained a strong balance sheet with $2.0 billion in cash, cash equivalents and marketable securities as of March 31, 2025.Free cash flow strengthened to $126.6 million compared to $29.2 million in Q1 2024, driven by improved profitability and working capital management. The company saw continued momentum in international markets with rest of world DAUq growing 41% year-over-year, though the U.S. remains its most developed and highest monetizing geography with ARPU of $6.27.
