Reddit Stock Soars After Reporting Record User Traffic in First Earnings Report Since IPO

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Key Takeaways

  • Reddit shares soared successful extended trading Tuesday aft nan institution released its first quarterly net study since it began trading successful March.
  • The societal media company's first-quarter gross was $243 million, a 48% summation from nan year-ago period, while advertisement gross accrued 39% year-over-year to $222.7 million. Both exceeded Bank of America analysts' expectations.
  • Reddit's nett nonaccomplishment of $575.1 cardinal widened from a twelvemonth ago, "driven by IPO charges."
  • Reddit besides reported grounds personification traffic, pinch regular progressive unsocial personification numbers increasing 37% year-over-year to 82.7 million, topping Raymond James analysts' estimates.

Reddit (RDDT) shares soared complete 13% successful extended trading Tuesday aft nan societal media institution reported grounds personification postulation and rising gross successful its first quarterly net study since its initial nationalist offering (IPO) successful March.

The company's gross for nan first 4th of 2024 was $243 million, a 48% summation from nan year-ago period. Ad gross accrued 39% year-over-year to $222.7 million. Both figures were supra Bank of America analysts' expectations of $212 cardinal and $199 million, respectively.

Reddit reported a nett nonaccomplishment of $575.1 cardinal aliases $8.19 per share, widening from a nonaccomplishment of $60.9 cardinal aliases 1.05 per stock successful nan first 4th of 2023, "driven by IPO charges."

The institution besides reported grounds personification traffic, pinch regular progressive unsocial users (DAUq) jumping 37% year-over-year to 82.7 million, up of Raymond James analysts' expectations.

"It was a beardown commencement to nan twelvemonth and a milestone 4th for Reddit and our communities arsenic we debuted arsenic a nationalist company,” Reddit CEO Steve Huffman said, adding that "we spot this arsenic nan opening of a caller section arsenic we activity towards building nan adjacent procreation of Reddit.”

The societal media institution said it anticipates gross for nan 2nd 4th to beryllium betwixt $240 cardinal to $255 million, pinch adjusted earnings earlier interest, taxes, depreciation, and amortization (EBITDA) successful nan scope of $0 to $15 million, compared to nan $10 cardinal it reported successful nan first quarter.

Reddit's banal value was up much than 13% astatine $55.90 successful extended trading arsenic of 5 p.m. ET Tuesday, an summation of astir 64% from its IPO value of $34.

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