Core Insights - Reddit's second-quarter earnings highlight a significant increase in focus on AI, particularly in enhancing its advertising business, which generated $465 million, accounting for 93% of total revenue [1] Advertising Business - The majority of Reddit's revenue is derived from advertising, with a reported $465 million in ad revenue for the second quarter [1] - New advertising features launched include Reddit Insights, which analyzes platform data for campaign strategies, and Conversation Summary Add-ons, allowing user discussions to be included in ads [2] Other Revenue Growth - The "other revenue" category, which includes data licensing deals with AI providers, saw a 24% year-over-year increase to $35 million, up from $28.1 million [3] - Reddit has established content licensing agreements with major AI companies like Google and OpenAI, indicating a steady income stream with long-term potential [4] AI Features - The Reddit Answers tool, launched in December, has gained traction with 6 million weekly users, up from 1 million in the previous quarter [5] - The company aims to integrate the Reddit Answers tool more deeply into the core search experience, enhancing the platform's search functionality [5]
Reddit revenue soars as it bets on AI and advertising