Reddit is gearing up for more M&A, the company told analysts on Thursday’s fourth-quarter earnings call. Reddit CFO Andrew Vollero said the online forum site is looking for businesses that can leverage Reddit’s scale — meaning their products can be more impactful when deployed across Reddit’s larger user base — or help grow the company’s user base.

“(We’re) looking to buy capabilities, technologies, and companies,” he said during introductory remarks.

Investors, obviously, want to know more — especially what the company has in mind when it comes to leveraged opportunities.

In the Q&A part of the call, Vollero clarified, “Maybe I can’t think of many opportunities. He reiterated that the company is looking for capabilities and technologies that will add to its business, as it has successfully done so in the past.

“It’s really one of the secrets to our success,” he said.

Vollero explained that Reddit’s adtech team is particularly adept at “infusing” acquired technologies instead of creating these things themselves.

“It saved us six months to sell, we save twelve months to sell, and you have a proven product,” said the CFO, crediting these deals with helping Reddit improve its monetization capabilities as an ad-supported business.

However, Vollero cautioned that while adtech claims have worked in the past, the company is “not taking anything off the table.” That’s why he mentioned that Reddit can buy companies that can provide when added to a company of its size.

The company in the quarter reported strong earningswith $726 million in revenue, $690 million of which came from ads. Global daily active unique users increased 19% year over year to 121.4 million, and earnings per share of $1.24 were estimated.

Reddit also said it sees a growing opportunity to generate revenue from its AI search product in the future, which raises the question of whether the company is looking at this area for M&A, too.

Reddit, which has ramped up its AI investments in recent months, including an AI search engine, has acquired startups in the past. In recent years, it has acquired adtech players and AI optimization tools, including Unforgettable AI in August 2024.

Designed to improve Reddit’s advertising tools, the acquisition joins several others from 2022, including an AI platform Spelldesigned to enhance Reddit’s machine learning capabilities; Spiketrapwhich focuses on improved ad targeting; otterluwhich develops machine learning moderation tools; and MeaningCloudanother startup bought to improve Reddit’s machine learning and text analysis capabilities.