"Reddit is gearing up for more M&A, the company told analysts on its fourth-quarter earnings call on Thursday. Reddit CFO Andrew Vollero said the online forum site is looking for businesses that can either leverage Reddit's scale - meaning their products become more impactful when deployed across Reddit's massive user base - or help grow the company's user base. "[We're] looking to buy capabilities, technologies, and companies," he said during the introductory remarks."
"In the Q&A portion of the call, Vollero clarified, "I probably wouldn't overthink the scaled opportunities. I would just look at it as sort of a spectrum of opportunities." He reiterated that the company was looking for capabilities and technologies that could add to its business, noting that it's been successful doing this in the past. "It's really been one of the secrets of our success," he pointed out."
Reddit intends to pursue additional mergers and acquisitions to acquire capabilities, technologies, and companies that either leverage Reddit's scale or expand its user base. The CFO emphasized looking at scaled opportunities as a spectrum and seeking tuck-in acquisitions that add to the business. The adtech team has integrated acquired technologies to shorten time to market and improve monetization, saving six to twelve months of development. Reddit is not ruling out opportunities outside adtech. Quarterly results showed $726 million in revenue, $690 million from ads, 121.4 million daily active unique users (up 19% YoY), and $1.24 earnings per share.
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