Reddit forecast second-quarter revenue above analysts' estimates on Thursday, powered by its AI-driven advertising tools. Shares jumped 8% in extended trading.
The platform uses AI to help advertisers target users based on interests and subreddit communities. Features include an AI copywriter for Reddit-specific ads and an automatic image cropper.
Chief Operating Officer Jen Wong said active advertiser count grew 75% year-over-year for the third straight quarter.
Reddit expects Q2 revenue of $715 million to $725 million, above the $711.6 million analyst consensus. Adjusted EBITDA is forecast between $285 million and $295 million, surpassing estimates of $277.1 million.
First-quarter revenue rose 69% to $663 million, beating expectations. Daily active users grew 17% to 126.8 million, and global average revenue per user increased 44%.
Last month, Reddit partnered with Shopify to let merchants advertise directly on the platform, turning user discussions into shopping opportunities.