Group 1: M&A Strategy - Reddit is preparing for more mergers and acquisitions (M&A), focusing on businesses that can leverage its large user base or help grow its user base [1][2] - The company is looking for capabilities and technologies that can enhance its business, emphasizing a spectrum of opportunities rather than specific targets [2][6] - Past acquisitions, particularly in adtech, have been successful for Reddit, allowing the company to integrate technologies quickly and improve monetization [3][6] Group 2: Financial Performance - In the recent quarter, Reddit reported strong earnings with $726 million in revenue, of which $690 million came from advertising [7] - The company experienced a 19% year-over-year increase in global daily active unique users, reaching 121.4 million, and earnings per share of $1.24 exceeded estimates [7] - Reddit sees potential for future revenue generation from its AI search product, indicating possible interest in M&A in this area as well [7][8] Group 3: Recent Acquisitions - Reddit has been increasing its investments in AI, including the development of an AI search engine, and has previously acquired startups to enhance its advertising tools [8][9] - Notable acquisitions include Memorable AI, Spell, Spiketrap, Oterlu, and MeaningCloud, all aimed at improving Reddit's machine learning and advertising capabilities [8][9]
Reddit says it's looking for more acquisitions in adtech and elsewhere