Reddit reported strong second-quarter results, with revenue and profit exceeding expectations and upbeat guidance for the following quarter. However, its shares fell more than 10% after hours after the company warned that search-engine referrals had become uneven, reinforcing investor concerns that AI-driven search could reduce traffic to Reddit.

Revenue rose 61% year on year to $805 million and net income increased 183% to $253 million; Reddit forecast $860 million to $870 million in next-quarter revenue. Global usage increased, but US daily active unique users edged down from 53.5 million in the first quarter to 53.2 million, while CEO Steve Huffman said Reddit’s human communities would remain valuable and gave no firm answer on future data-licensing arrangements with Google and OpenAI.