Reddit (RDDT) reported a revenue increase of 61% year-over-year, reaching $392.4 million in Q1 2025, primarily driven by advertising growth. Daily Active Uniques rose to 108.1 million and Weekly Active Uniques to 401.3 million, both up 31% year-over-year. The company is also focusing on AI-led features for content discovery, aiming for global expansion in the U.K. and Australia.
Nextdoor (KIND) experienced modest revenue growth of 2% year-over-year, totaling $54 million in Q1 2025. Weekly Active Users increased to 46.1 million, up 6%, alongside platform-specific WAUs growing by 5% to 22.5 million. Despite these gains, Nextdoor’s financial performance remains below expectations, with losses persisting.
As of now, Reddit’s stock carries a Zacks Rank #3 (Hold) while Nextdoor holds a Zacks Rank #4 (Sell), indicating Reddit is currently seen as a stronger investment option amidst the growing social networking market projected to expand by $312.3 billion from 2024 to 2029.
