Reddit signals acquisition plans as adtech growth accelerates
Reddit acquisition plans are gaining momentum after strong quarterly results.
The company confirmed it is exploring more mergers and acquisitions. Executives shared the update during Reddit’s latest earnings call. CFO Andrew Vollero said Reddit wants businesses that scale fast.
These companies should work well across Reddit’s large user base. Alternatively, they should help attract new users. He explained that Reddit is not chasing one specific category.
Instead, the company is open to a wide range of opportunities. Therefore, flexibility remains part of the strategy. Investors pressed for clarity during the Q&A session. Vollero said people should not overthink the plan. The focus stays on adding useful capabilities.
Adtech and AI remain key targets
Adtech has played a major role in Reddit’s past success. The company often buys tools instead of building them internally. As a result, Reddit saves months of development time. These acquisitions have helped improve ad monetization.
Reddit relies heavily on advertising revenue. In fact, ads made up most of its $726 million quarterly revenue. Daily active users also jumped 19% year over year. The platform now reaches over 121 million people daily. This growth makes scalable tools even more valuable. However, Reddit is not limiting itself to adtech alone.
The company sees long-term potential in AI-powered search. Therefore, AI-focused deals could also emerge. Reddit has a history of buying smart AI startups. Past deals strengthened machine learning and moderation tools.
These moves continue to shape Reddit’s product roadmap. Overall, Reddit acquisition plans reflect confidence. Strong earnings support further investment. The company now looks ready to expand again.