In response to user complaints about its search function, Reddit has invested in its search engine over recent years, incorporating AI features to enhance user experience. This investment has resulted in a significant 30% increase in weekly search users, according to CEO Steve Huffman. He emphasized that search has become a crucial driver for user acquisition and retention. Huffman highlighted strong performance in search daily active users (DAUs) and queries, attributing this success to the effective integration of Reddit Answers into the platform.
In February, Reddit began testing AI-driven product placement in U.S. search results. Huffman noted that 40% of Reddit conversations are commercial, with 84% of shoppers feeling more confident in their purchasing decisions after researching on Reddit. The platform ended the quarter with 493 million weekly active users, a 23% increase from the previous year, and daily active users rose by 17% to 126 million. In the U.S., Reddit reported a 7% growth in visitors, reaching 53.5 million DAUs, and a 26% increase internationally to 73.3 million DAUs. The company aims for one billion global daily users and 100 million daily users in the U.S.
Additionally, Reddit’s machine translation feature, supporting over 30 languages, has contributed to significant user growth. The company reported Q1 2026 revenue of $663 million, surpassing Wall Street’s forecast of $609.8 million, with only $1 million spent in capital expenditures during the quarter.