(Reuters) -Reddit forecast first-quarter revenue above Wall Street estimates on Wednesday, betting on its artificial intelligence content licensing deals and a robust digital advertising spend.
Reddit is benefiting from its conversation placement ads format, where brands can advertise directly into discussion threads within interest-based communities known as subreddits.
That is bolstered by the company’s ramping content licensing deals with Alphabet’s Google and Microsoft-backed OpenAI, which have helped it diversify its revenue streams.
The company expects first-quarter revenue of $360 million to $370 million, compared with analysts’ average estimate of $358.1 million, according to data compiled by LSEG.
Reddit’s daily active unique visitors rose 39% to 101.7 million in the fourth quarter ended December 31, while its global average revenue per user increased 23% to $4.21.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Alan Barona)
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