The company’s AI-optimised ad platform helps ‌advertisers place targeted ads directly within relevant discussion threads across its interest-based communities called subreddits.

The strong results signal that the company’s strategy is paying off as ​Reddit takes on bigger ad rivals such as Meta’s ​Instagram and Facebook.

Reddit is “still hiring and adding to our talent ⁠base,” Chief Operating Officer Jen Wong told Reuters on Thursday.

The ​remarks paint Reddit as an outlier, as companies such as Meta, Snap ​and Pinterest have cut thousands of jobs over the past year to streamline operations and refocus spending on artificial intelligence.

Reddit’s stock has had a turbulent year, ​sliding roughly 36% year-to-date, while Snap and Pinterest have dropped about ​24% each.

Its daily active unique visitors grew 17% to 126.8 million in the ‌quarter, ⁠while global average revenue per user increased by 44%.

“Execution across these areas (US user growth) remains key to driving multiple expansion for Reddit…as it will showcase its growing importance, even in a future GenAI-enabled ​and agentic landscape,” ​said analysts at ⁠Morgan Stanley.

Its ad platform uses AI to improve campaign creation and management through features including an ​AI copywriter for Reddit-specific advertisements and an automatic creative ​asset cropper ⁠that optimises images for various ad placements.

Its vast content library has also become a prized asset as AI companies hunt for data to ⁠train ​their large language models, the technology behind ​chatbots such as ChatGPT.

Reddit has a 12-month forward price-to-earnings ratio of 30.40, compared with ​Snap’s 9.93, Pinterest’s 10.27 and Meta’s 19.05.