I kept hearing about and through your reporting that like they didn't think the market was there for a chat. GPT like at all. So they integrated the tech industry.Now they've kind of changed tack a little bit. It's become very obvious that one of the biggest use cases for LGBT is search on my iPhone. For instance, I have one of the newer models of the action button on the side, and so whenever I need to search for something, I don't go to Safari and go to Google or the Google search app.I click my action bu ...

Core Insights - Reddit is integrating its search function with Reddit Answers to create a unified search experience, making the search box more prominent in the app [1] - The company has over 70 million weekly active users utilizing the search function and 6 million using Reddit Answers [1] - A recent survey indicated that 80% of users believe some questions can only be answered by humans rather than AI [2] User Demand and Engagement - There is a strong demand for Reddit as a source of information, being the most cited source for AI platforms like Google Overviews and Perplexity, and second for ChatGPT [3] - The percentage of Reddit cited on Perplexity is 46.7%, indicating a strong preference for community-generated content [3] Financial Performance - In Q2 2025, Reddit reported a 78% increase in revenue year-over-year, reaching $500 million [5] - Daily active users have grown to 110 million, marking a 21% increase from the previous year [5] Industry Trends - The shift towards search is seen as a strategic move, as users often add "Reddit" to their Google searches, indicating existing demand [4][5] - The rise of alternative search experiences, such as TikTok, reflects changing user behavior in seeking specific content [5] Challenges - Reddit may face challenges with increased AI-generated spam as it enhances its search capabilities [6][7] - The platform will need to combat the influx of AI content that could undermine the quality of community-generated responses [7]

Core Insights - Reddit aims to position itself as a viable alternative to Google for online search, leveraging its unique content and community-driven knowledge [1][2] - The company reported 70 million weekly users for its core search product and 6 million users for its AI-powered search tool, Reddit Answers [2] - Reddit's Q2 revenue grew 78% year-over-year to $500 million, marking its most profitable quarter with a net income of $89 million [8] Product Development - CEO Steve Huffman announced plans to integrate Reddit's core search and Reddit Answers into a single product, enhancing user experience [3] - COO Jen Wong emphasized the importance of marketing to promote Reddit's search capabilities, aiming to shift user behavior towards utilizing its search features [3] Financial Performance - Reddit's valuation is set at $6.4 billion as it prepares for a public offering in 2024, with a reported 37% increase in daily active unique visits and nearly 50% revenue growth to $234 million [9] - The partnership with Google has allowed Reddit to enhance its search capabilities through access to Vertex AI, although concerns about reliance on Google for traffic persist [10]

Financial Data and Key Metrics Changes - Revenue grew 78% year over year to $500 million, marking the fastest quarterly growth rate since 2022 [7][28] - Daily active users increased to 110 million, up 21% year over year, with growth in both the U.S. and international markets [7] - Adjusted EBITDA reached $167 million, with a margin of 33%, up over 1,900 basis points year over year [28][29] - GAAP net income was $89 million, translating to $0.48 per basic share [40] Business Line Data and Key Metrics Changes - Advertising revenue grew 84% year over year to $465 million, driven by broad-based strength across the business [20][31] - Other revenue, including data licensing, reached $35 million, growing 24% year over year [31] - Average revenue per user (ARPU) increased 47% year over year to $4.53 [31] Market Data and Key Metrics Changes - Revenue in the U.S. grew significantly, with international markets also showing strong performance, particularly in Europe [31] - The total active advertiser count expanded by over 50% year over year [20] Company Strategy and Development Direction - The company is focusing on improving the core product, enhancing search capabilities, and expanding internationally [12][15] - Strategic investments are being made in sales, marketing, and machine learning to drive user engagement and revenue growth [34][38] - The company is deprioritizing some initiatives, such as the user economy, to concentrate resources on areas that will drive immediate results [13][45] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the unique role Reddit plays in human conversation and its potential for growth [8][10] - The company sees a significant opportunity in becoming a trusted source of information in an increasingly automated world [10][12] - For Q3 2025, the company estimates revenue in the range of $535 million to $545 million, representing 54% to 56% year-over-year growth [41] Other Important Information - The company is investing in machine translation to unlock Reddit for millions of users across various regions [16] - The launch of new products like Dynamic Product Ads and Reddit Insights is expected to enhance advertiser performance and user engagement [22][24] Q&A Session Summary Question: What is one memorable discussion you had at the Cannes Lions Festival? - Management highlighted a discussion where an advertiser realized a new customer segment and expressed excitement about the quality of the team [43] Question: What projects are being prioritized over the user economy? - The focus is on improving user engagement through core app improvements and diversifying traffic sources [45] Question: How are U.S. user trends evolving? - There was a slower start in April, but traction improved throughout Q2, with higher daily active users reported in July [53][54] Question: What innovations are expected in the advertising business? - Exciting developments include Dynamic Product Ads and automation features that enhance advertiser onboarding and performance [56][57] Question: How is the search experience evolving with Reddit Answers? - The company is unifying the search experience to integrate Reddit Answers, making it more accessible for users [63] Question: How have advertiser relationships evolved? - The company has created a global accounts team to better service larger clients and is seeing increased demand for integrated advertising solutions [66] Question: What are the key learnings from marketing efforts? - There is a need to build awareness and consideration, especially outside the U.S., and to create a unique search experience on Reddit [75][78]

Core Problem & Solution - The presentation introduces Exa, a search engine designed for AI, addressing the limitations of traditional search engines built for human users [5][23] - Exa aims to provide an API that delivers any information from the web, catering to the specific needs of AI systems [22][41] - Exa uses transformer-based embeddings to represent documents, capturing meaning and context beyond keywords [11][12] AI vs Human Search - Traditional search engines are optimized for humans who use simple queries and want a few relevant links, while AIs require complex queries, vast amounts of knowledge, and precise, controllable information [23][24] - AI agents need search engines that can handle multi-paragraph queries, search with extensive context, and provide comprehensive knowledge [31][32][33] - Exa offers features like adjustable result numbers (10, 100, 1000), date ranges, and domain-specific searches, giving AI systems full control [44] Market Positioning & Technology - Exa launched in November 2022 and gained traction for its ability to handle complex queries that traditional search engines struggle with [15] - The company recognized the need for AI-driven search after the emergence of ChatGPT, realizing that LLMs need external knowledge sources [17][18] - Exa combines neural and keyword search methods to provide comprehensive results, allowing agents to use different search types based on the query [47][48] Future Development - Exa is developing a "research endpoint" that uses multiple searches and LLM calls to generate detailed reports and structured outputs [51] - The company envisions a future where AI agents have full access to the world's information through a versatile search API [48] - Exa aims to handle a wider range of queries, including semantic and complex ones, turning the web into a controllable database for AI systems [38][39][40]

ChatGPT Is Becoming My Default Search Engine https://t.co/RZxGvvUZbR ...

General Observation - When facing uncertainty and seeking guidance, Google can provide step-by-step instructions [1]