Reddit’s Q1 revenue surged to $663.41 million with a 40.1% EBITDA margin, driven by AI licensing and ad growth.
Reddit reported Q1 total revenue of $663.41 million, up 39% year over year, with advertising revenue climbing 74% to $625 million. The company achieved a 40.1% adjusted EBITDA margin, supported by AI licensing deals with Google and OpenAI, while capex remained minimal at $1.09 million.
In contrast, Chewy’s Q1 revenue rose 7.7% to $3.357 billion, with Autoship sales accounting for $2.833 billion, or 84.4% of net sales. Reddit’s platform model, leveraging 126.8 million daily active users and $5.23 global ARPU, contrasts sharply with Chewy’s logistics-heavy e-commerce approach.
The stark divergence in growth and profitability highlights Reddit’s scalability and margin advantages over Chewy’s operational intensity.