Reddit is doubling down on artificial intelligence to better serve users who rely on the platform for real, experience-based answers. According to CEO Steve Huffman, Reddit attracts two main audiences: those who casually scroll through communities, and those who come with specific questions, often searching through Google with “Reddit” attached to their query. For this second group, Reddit has created Reddit Answers, an AI-powered feature that surfaces direct responses and summaries from existing Reddit posts. Launched in beta in December, Reddit Answers now has over one million weekly active users and has expanded beyond the United States to countries like the UK, Australia, Canada, and India.
Huffman noted during the company’s Q1 2025 earnings call that Reddit had previously overlooked this “seeker” audience, who aren’t looking to engage in communities but simply want trustworthy information quickly. The company now plans to integrate Reddit Answers more deeply into its main platform. One potential update includes embedding the tool into the primary search bar, allowing users to type full questions and receive curated Reddit responses. Reddit also plans to present Answers to new users upon opening the app, helping them navigate the platform more easily.
Another major opportunity lies in external search traffic. Huffman emphasized the value of remaining open to Google Search, but also acknowledged the risks involved. A Google algorithm update late last year impacted Reddit’s user growth, creating uncertainty despite strong revenue numbers.
Financially, Reddit reported a strong first quarter, with revenue reaching $392.4 million, a 61 percent increase from the previous year. Daily active unique users climbed to 108.1 million, up 31 percent year-over-year. The company’s adjusted EBITDA was $115.3 million. For the second quarter, Reddit forecasts revenue between $410 million and $430 million, with adjusted EBITDA ranging from $110 million to $130 million.
