Reddit's forecast for second-quarter revenue exceeds Wall Street's expectations, driven by increased digital advertising interest on the platform. CEO Steve Huffman noted potential disruptions in daily active users due to Google's evolving search algorithms. Despite this, Reddit's investments in advertising technology are yielding positive results, with a significant rise in active advertisers. The company expects revenue of $410-$430 million, surpassing analysts' predictions, while competing with major platforms like Facebook and TikTok for ad spend.
We do expect some bumps along the way from Google, because we've already seen a few this year. The search ecosystem is undergoing significant changes.
Reddit's ad tech investments are paying off, and the company is attracting advertisers at a time when economic uncertainty is constraining budgets.
Reddit is benefiting from its conversation placement ads format, where brands advertise directly within discussion threads in its interest-based communities.
The company expects current-quarter revenue of $410 million to $430 million, exceeding analysts' average estimate of $395.5 million.
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