Reddit Inc. reported its first profitable quarter, delivering GAAP earnings of $0.13 per share for the three months ended March, easily topping analysts’ $0.02 consensus. Net income reached $26.2 million, a sharp turnaround from a $575.1 million loss a year earlier. Revenue surged 61% to $392.4 million, beating the $370 million estimate. Advertising, which supplies roughly 94% of Reddit’s revenue, climbed 61% to $358.6 million, while other revenue rose 66% to $33.7 million. Daily Active Uniques expanded 31% year over year to 108.1 million, aided by international growth of 41%. Overseas revenue accelerated 82% and now accounts for about one-fifth of total sales. Gross margin improved 190 basis points to 90.5%. For the current quarter, the company projected revenue of $410 million to $430 million and adjusted EBITDA of $110 million to $130 million, both ahead of Wall Street expectations. Executives said daily active users are growing in the “high-teens” percentage range so far in April but cautioned that ongoing changes to Google’s search algorithms could create short-term volatility. The stock jumped as much as 19% in after-hours trading on the results and outlook, before paring the advance to roughly 5% following the earnings call. Reddit added that its AI-powered search feature, Reddit Answers, has reached about 1 million weekly users as the platform continues to invest in new products and international expansion.