:Reddit forecast first-quarter revenue above Wall Street estimates on Wednesday, betting on its artificial intelligence content licensing deals and a robust digital advertising spend.
Reddit is benefiting from its conversation placement ads format, where brands can advertise directly into discussion threads within interest-based communities known as subreddits.
That is bolstered by the company’s ramping content licensing deals with Alphabet’s Google and Microsoft-backed OpenAI, which have helped it diversify its revenue streams.
The company expects first-quarter revenue of $360 million to $370 million, compared with analysts’ average estimate of $358.1 million, according to data compiled by LSEG.
Reddit’s daily active unique visitors rose 39 per cent to 101.7 million in the fourth quarter ended December 31, while its global average revenue per user increased 23 per cent to $4.21.
