The Reddit CEO, Steve Huffman, says there are two types of people who come to the social media platform: displays and search engines.
The displays are the ones that come to the Central Product of Reddit, which is a community conversation and is dedicated to the issues that are passionate, from R/Sourdoough to R/Popcultuhatc. Then there are search engines; People who could write their specific consultation in the search for Google and Cur “Reddit” in the end so that they can find real advice and opinions of real people.
Reddit responds, the chatbot to the company that appears in the literal responses and summaries of the existing publications of Reddit, is for search engines. And the first results suggest that it is already winning traction.
“Until very recently, we behave” a product for them, “said Reddit’s CEO, Steve Huffman, Thorsday in the company’s first quarter’s profit call.” These users do not come to Reddit for a community at that time. They go for an answer. And I think we can [acknowledge] The case of use that the user brings us and that is more effective to solve it. “
Reddit announced the duration of the call that your answers product already has 1 million weekly active users since it was launched in Beta in December. Last month, Reddit extended the answers beyond the United States and Australia, the United Kingdom, Canada and India.
The feature, which is still in Beta, currently lives in the navigation bar of the application, since it has a separate experience. Upon entering 2025, Reddit plans to integrate answers more deeply into the platform in different ways.
Huffman said that the most obvious way of doing so would be to integrate answers into the primary search box, which could allow users to write a complete consultation instead of just a few keywords.
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The executive also said that the company is exploring ways to integrate answers at the beginning of the user’s trip.
“So you are a new user who opens Reddit for the first time, using answers to see what is in Reddit and learn that Reddit almost surely has what you are looking for,” he said.
Another “entry point” for answers would be through an external search, “help [users] Get a more summary or easy version of being from Reddit’s answer, “said Huffman.
That could also protect Reddit from being at the mercy of Google search. In the fourth quarter of 2024, a change in the Google search algorithm caused some “volatility” with the growth of Reddit users, which scared investors at that time, despite higher estimates.
“We are an open platform, and we want people to find Reddit content in [Google] Search, “said Huffman.” Being open drives consciousness and visibility. You can also create variability, and we expect some potholes on the Google road, because we have already seen some this year. This is expected in any year, but since the search ecosystem is in a heavy construction, the short term could be more full of potholes than usual. “
Reddit’s shares shot at trade after schedule when the company exceeded the expectations of analysts and strong user growth. The company reported revenues of $ 392.4 million, 61% more year after year, an adjusted Ebitda or $ 115.3 million, and unique active users of 108.1 million, an increase of 31% year -on -year.
In the second quarter, Reddit estimates the income in the range of $ 410 million to $ 430 million and Ebitda adjusted between $ 110 million and $ 130 million.
