Reddit Aims AI Features Beyond Its Community at Google Users

According to Reddit CEO Steve Huffman, the platform attracts two distinct types of users: Scrollers and Seekers.

Scrollers engage with Reddit's core offering—participating in community conversations and exploring topics they're passionate about, from r/sourdough to r/popculturechat. Seekers, on the other hand, are users who perform specific searches on Google, often adding "Reddit" to their query to find genuine advice and opinions from real people.

Reddit Answers, the company's AI-powered chatbot that delivers direct answers and summaries from existing Reddit content, is designed for the Seekers. Early data indicates this feature is quickly gaining popularity.

"Until recently, we didn't have a dedicated product for this group," Huffman stated during the company's first-quarter earnings call. "These users aren't coming to Reddit for community in that moment—they're seeking a specific answer. We recognize this distinct use case and can better serve them by focusing on it."

Reddit announced that its Answers product has already attracted 1 million weekly active users since its beta launch in December. Last month, the company expanded the feature beyond the U.S. to Australia, the U.K., Canada, and India.

Currently in beta, Answers operates as a standalone experience within the app's navigation bar. Looking ahead to 2025, Reddit plans deeper integration of Answers across the platform in several key ways.

Huffman explained that the most straightforward approach would be incorporating Answers into the primary search box, enabling users to enter full questions rather than just keywords.

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The company is also exploring how to incorporate Answers at the start of the user experience.

"Imagine a new user opening Reddit for the first time and using Answers to discover what's available, quickly learning that Reddit likely has exactly what they're looking for," he said.

Another potential entry point for Answers would be through external search, "helping users access summarized or easy-to-understand versions of Reddit answers," Huffman added.

This strategy could also reduce Reddit's dependence on Google Search. In Q4 2024, a Google algorithm update created "volatility" in Reddit's user growth, causing investor concern despite the company exceeding earnings expectations.

"We're an open platform and want people to discover Reddit content through Google Search," Huffman noted. "Openness increases awareness and visibility, though it can also introduce variability. We anticipate occasional disruptions from Google, as we've already experienced this year. This is normal, but with the search ecosystem undergoing significant changes, the near term might be more unpredictable than usual."

Reddit's stock surged in after-hours trading as the company surpassed analyst earnings projections and demonstrated strong user growth. The company reported $392.4 million in revenue—a 61% year-over-year increase—along with $115.3 million in adjusted EBITDA and 108.1 million daily active unique users, representing 31% YoY growth.

For the second quarter, Reddit projects revenue between $410 million and $430 million, with adjusted EBITDA expected to range from $110 million to $130 million.