Financial Data and Key Metrics Changes - Reddit achieved total revenue of $2.2 billion in 2025, representing a 69% year-over-year increase, with Q4 revenue reaching $726 million, up 70% year-over-year [4][12][23] - Net income for the full year was $530 million, with Q4 net income hitting $252 million, which is 35% of revenue [23][25] - Adjusted EBITDA for Q4 was $327 million, representing 45% of revenue, and full-year adjusted EBITDA was $845 million, with a 38% margin [23][25] - Free cash flow crossed $250 million in Q4, reaching $264 million, which is 36% of revenue [23][24] Business Line Data and Key Metrics Changes - Advertising revenue in Q4 grew 75% year-over-year to $690 million, driven by strong performance across various objectives and channels [12][25] - Other revenue, including content licensing, reached $36 million, up 8% [25] - Average revenue per user (ARPU) grew 42% year-over-year to $5.98 [26] Market Data and Key Metrics Changes - U.S. revenue grew 68% year-over-year, while international revenue increased by 78% [14][26] - Total active advertiser count grew by over 75% year-over-year in Q4, indicating strong demand across all segments [15] Company Strategy and Development Direction - Reddit is focusing on enhancing user experience through improved onboarding and search functionalities, aiming to drive user growth and engagement [9][19] - The company is investing in automation and unique advertising solutions to improve advertiser performance and streamline onboarding processes [15][19] - A $1 billion share repurchase program was announced, reflecting confidence in growth and commitment to shareholder returns [10][30] Management's Comments on Operating Environment and Future Outlook - Management highlighted a significant shift in the internet landscape, emphasizing the importance of community and authentic interactions on Reddit [5][6] - The company is optimistic about its growth trajectory, with plans to enhance product offerings and user engagement in 2026 [10][22] - Management acknowledged the challenges posed by AI-generated content but emphasized the need for transparency and maintaining human-centric interactions [54][70] Other Important Information - Reddit plans to phase out the distinction between logged-in and logged-out users in reporting, focusing instead on overall user engagement [9][32] - The company is committed to maintaining a strong cash position while pursuing growth opportunities through investments and potential acquisitions [30][31] Q&A Session Summary Question: Why do a buyback instead of investing in future growth? - Management stated that the buyback is part of a balanced capital allocation strategy, allowing for investment in the business, M&A, and shareholder returns [36][39] Question: Can you elaborate on the revamped onboarding and its impact? - Management noted that streamlining onboarding improves retention and that integrating search with answers has led to increased query volumes [44][45] Question: How do you view AI-generated content on the platform? - Management acknowledged the role of AI in enhancing communication but emphasized the importance of maintaining human interactions and transparency [54][68] Question: What is the monetization opportunity with logged-out users? - Management clarified that both logged-in and logged-out users see ads, and the focus is on increasing engagement to enhance monetization opportunities [63][64] Question: How are partnerships with Google and OpenAI evolving? - Management indicated that partnerships are shifting towards product collaboration, aiming to enhance user engagement and community interaction [68][70]

Financial Data and Key Metrics Changes - The company reported a 40% year-over-year growth in Daily Active Users (DAUs) for Q2, which is a decrease from the 60% growth in the same quarter last year [10][11] - The company raised its full-year guidance due to record profitability and strong top-line growth [5] Business Line Data and Key Metrics Changes - The percentage of subscribers using the Max subscription increased from 5% to 8% over the past few quarters, indicating growth in this segment [20][21] - The Super subscription is performing better than expected, contributing to the slower growth of Max [21] Market Data and Key Metrics Changes - The Chinese market is identified as the fastest-growing market for the company, with successful partnerships, such as with Luckin Coffee, enhancing brand visibility [15][16] - The company has not yet launched its Max feature in China due to regulatory constraints [16][17] Company Strategy and Development Direction - The company is investing in new areas such as chess, math, and music, which are expected to drive long-term growth [5] - The company plans to start spending on marketing in the U.S. to counteract slower growth rates compared to other markets [120][122] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a temporary slowdown in DAU growth due to social media sentiment issues but expressed confidence in future recovery [12][96] - The company is optimistic about the impact of new features like the energy system, which has shown positive effects on user engagement and revenue [66][78] Other Important Information - The company is testing a web purchase flow to bypass the App Store, which could significantly increase profit margins [25][27] - The energy system has replaced the previous hearts mechanic, leading to increased daily active users and time spent on the app [66][78] Q&A Session Summary Question: Can you break down the primary drivers behind DAU growth moderation? - Management noted that DAU growth was 40%, slightly lower than expected due to negative social media sentiment, which has since improved [10][12] Question: Can you provide an update on the Max subscription? - The Max subscription has grown to 8% of total subscribers, but its growth was slower than expected due to challenges for beginner users [20][21][22] Question: What are the early learnings from the energy system? - The energy system has increased DAUs and revenue by rewarding users for correct answers rather than penalizing mistakes [66][78] Question: How is the company addressing engagement issues in the U.S.? - Management plans to start spending on marketing in the U.S. to improve engagement, as historical growth has been strong without marketing efforts [120][122] Question: What is the outlook for the Duolingo English Test? - The company expects lower demand for the Duolingo English Test due to macro trends affecting international student applications [95][96] Question: How is the video call feature performing? - The video call feature is seeing increased engagement, particularly among English learners, and improvements are being made to enhance user experience [90][108]