Reddit (RDDT) Morgan Stanley Technology, Media & Telecom Conference summary

Key achievements and growth drivers

• Accelerated ad revenue growth through continuous, targeted investments in ad tech and go-to-market strategies, moving away from annual cycles to a more agile, opportunity-driven approach.

• Consistent and rapid growth in logged-in users, driven by improvements in search and machine learning, with logged-in user engagement and retention increasing over time.

• Achieved GAAP profitability with strong operational leverage, demonstrating the scalability and efficiency of the business model.

• Rapid prototyping and innovation, exemplified by the launch of Reddit Answers, showcasing the ability to quickly test and iterate new features.

Areas for improvement and ongoing initiatives

• Developer platform has yet to deliver a large-scale, community-wide hit experience from independent developers, prompting a shift to partnering with more sophisticated developer groups.

• Managing volatility in logged-out user traffic due to changes from external platforms like Google, with teams adapting UI and crawling strategies to recover user growth.

• Continued focus on reducing friction in onboarding and improving the conversion of logged-out to logged-in users through product quality and personalized onboarding.

User engagement and retention trends

• Logged-in users start at 20 minutes per day and reach 45 minutes per day after five years, with engagement deepening as users join more communities and progress through life stages.

• The platform's model supports long-term retention, with user engagement increasing as users' interests evolve.