Reddit, Inc.

Good afternoon. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to Reddit's second quarter 2025 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. And if you would like to withdraw your question, press the star one again. Thank you. I would now like to turn the call over to Jesse Rose, Head of Investor Relations. Jesse, you may begin your conference.

Hi, everyone. Welcome to Reddit's second quarter 2025 earnings fall. Joining me are Steve Huffman, Reddit's co-founder and CEO, Jen Wong, Reddit COO, and Drew Valero, Reddit CFO. I'd like to remind you that our remarks today will include forward-looking statements, and actual results may vary. Information concerning risks and other factors that could cause these results to vary is included in our SEC filings. These forward-looking statements represent our outlook only as of the date of this call, and we undertake no obligation to update any forward-looking statements. During this call, we will discuss both GAAP and non-GAAP financials. Reconciliation of GAAP to non-GAAP financials can be found in our letter to shareholders. Our second quarter letter to shareholders and earnings press release are available on our investor relations website and investor relations subreddit. And now I'll turn the call over to Steve.

Thanks, Jesse. Hi everyone. And thank you for joining our Q2 earnings call. It's been another strong quarter for Reddit with particularly strong performance on the revenue and profitability lines. And I'm proud of how the company is executing as we move into the second half of 2025. A personal highlight for me was meeting with advertisers in Cannes earlier this summer. The trip was a good barometer for how brands view Reddit today. They want to work with us, they understand our distinct role on the internet, and they recognize we deliver real value to their businesses. During a demo of Reddit Insights, our new AI-powered Brand Insights product, a client remarked, this will be our Super Bowl ad next year. OK, on to the numbers. Revenue grew 78% year over year to $500 million, our fastest quarterly growth rate since 2022. Daily active users grew to 110 million, up 21% year over year, with growth in both the US and international markets. This was driven mainly by product improvements and increased marketing activity. And this was our most profitable quarter yet. These results are a testament to our work, our users, and the power of Reddit's communities. We'll get to Q2 shortly, but what excites me most is what's ahead. The world and the internet are rapidly changing, and I believe Reddit has a once in a generation opportunity. For people, conversation and connection are becoming more valuable and rare. In a world increasingly dominated by algorithms and automation, the need for human voices has never been greater. We see this every day as nearly 50 million scrollers come to Reddit for their favorite communities and 60 million seekers land on Reddit in search of better answers to their questions. In fact, 80% of users in a recent survey said they believe some questions can only be answered by humans, as opposed to AI-generated summaries. For LLMs and AI search engines, these conversations and the knowledge they create are essential for training. Platforms like Reddit, where people discuss every aspect of life, from the trivial to the transformative, are the backbone of building AI that actually works. That's why Reddit is the number one most cited domain for AI across all models per data collected by a profile. In an automated world that depends on human knowledge, we view Reddit as one of the most important and differentiated data sources. We believe this validates what we've always thought. Human conversation is not being replaced by AI. Instead, it's becoming more important. AI doesn't invent knowledge. It learns from us. from real people sharing real perspectives. You can't have artificial intelligence without actual intelligence. And for brands, Reddit's authenticity creates something rare, a direct connection with people when they're seeking trustworthy opinions. As more of the content you see online is synthesized, summarized, and sanitized by AI, Reddit stands out for its honesty and subjectivity. For many questions, there isn't a single objective answer. People want multiple viewpoints and lived experiences. This is why Reddit is synonymous with product and service recommendations. People turn to Reddit when they want to make informed decisions fast. We see tremendous potential to grow our user base and deepen engagement. And we're moving quickly to align priorities and resources to capture that opportunity. As a first step, we clarified our product strategy and are investing in making Reddit a better experience for everyone who comes to the platform. whether they're scrolling their favorite subreddit, seeking input on a purchase, or discovering a new community for the first time. To focus on the areas that matter most, we are deprioritizing a few initiatives, including our work on the user economy. It's still an opportunity we believe in, but we're concentrating our resources on the areas that will drive results for our most pressing needs, improving the core product, making Reddit a go-to search engine, and expanding internationally. Here's what we're working on right now. Let's start with a core product. First impressions matter, and we want to make your first moments on Reddit sticky and worth coming back for. We're zeroing in on a few key areas, making onboarding even more intuitive and search forward, lowering barriers to log in and contribute, and using AI to help people find their home, whether that's through real-time personalization or smarter community discovery. We're also moving fast on human verification to preserve Reddit's authenticity, something our users have repeatedly asked for and we're eager to deliver on. Second is search. Reddit is one of the few platforms positioned to become a true search destination. We offer something special, a breadth of conversations and knowledge you can't find anywhere else. Every week, hundreds of millions of people come to Reddit looking for advice and returning more of that intent into active users of Reddit's native search. We're seeing good traction here as our core search product now has 70 million weekly users and Reddit Answers has grown to 6 million, up from 1 million last quarter. Next, we're expanding Reddit Answers globally, integrating it more deeply into the core search experience and making search a central feature across Reddit. We're pairing these product updates with marketing initiatives to increase awareness and adoption of Reddit Answers worldwide. And finally, international expansion. Machine translation is now live in 23 languages, unlocking Reddit for millions of people across Asia, Europe, and Latin America. This is just the start of a growth flywheel. Translation and marketing bring people in, localized content and app experience deepen relevancy, and skilled moderator recruitment creates stronger ecosystems. Our goal is for Reddit to be self-sustaining in these countries, and the early results are promising. Recently, we celebrated Reddit's 20th year and I've never been more excited about our business and the potential than I am today. The internet is evolving and our role as a community powered platform for human connection is only becoming more critical. This next chapter is ours to write and we're finishing the first pages already. As I said before, we control our own destiny and we're focused on building Reddit into the most human trusted place on the internet. Thank you to our team the moderators, and users for making Reddit what it is today. With that, I'll hand it over to Jen to take you through the consumer and ads product strategy in more detail. Jen?