Business

Reddit (RDDT) Q1 2024 earnings

  • Loss per share: Loss of $8.19 per share. This may not compare to LSEG’s expected loss of $8.71.
  • Income: $243 million against $212.8 million expected by LSEG

Revenue increased 48% from $163.7 million a year earlier. The company reported $222.7 million in advertising revenue for the period, up 39% year over year, representing a faster growth rate than its major competitors.

Digital advertising companies have started growing at a healthy pace again after brands cut spending to keep up with inflation in 2022. Meta’s ad revenue jumped 27% in the first quarter, followed by growth 24% at Amazon and 13% at Google’s parent company, Alphabet.

Reddit reported a net loss of $575.1 million. Stock-based compensation expense and related taxes were $595.5 million, primarily due to IPO expenses.

For the second quarter, Reddit expects revenue between $240 million and $255 million, exceeding the $224 million expected by analysts, according to LSEG. The midpoint of the forecast range suggests growth of about 32% for the second quarter, up from $183 million a year earlier.

Reddit, which hosts millions of online forums on its platform, was founded in 2005 by Alexis Ohanian and Steve Huffman, the company’s CEO.

“We view this as the start of a new chapter as we work to build the next generation of Reddit,” Huffman said in a statement released Tuesday.

Reddit began trading under the ticker “RDDT” on the New York Stock Exchange in March. The company priced its IPO at $34 per share, valuing the company at approximately $6.5 billion. When tech valuations were red hot in 2021, Reddit’s private market valuation hit $10 billion.

The stock climbed past $58 after hours Tuesday before pulling back a bit. If the stock closed above $57.75 on Wednesday, it would be at its highest level since March 26, its fourth day of trading. Shares closed that day at $65.11, their highest level ever.

The company reported 82.7 million daily active users for its first quarter, compared to 76.6 million expected by StreetAccount. Average revenue per user worldwide increased 8% to $2.94 from $2.72 a year ago.

Reddit will hold its first quarterly call with investors at 5 p.m. ET.

WATCH: Reddit Stocks Climb After Earnings

News Source : www.cnbc.com
Gn bussni

Sara Adm

Aimant les mots, Sara Smith a commencé à écrire dès son plus jeune âge. En tant qu'éditeur en chef de son journal scolaire, il met en valeur ses compétences en racontant des récits impactants. Smith a ensuite étudié le journalisme à l'université Columbia, où il est diplômé en tête de sa classe. Après avoir étudié au New York Times, Sara décroche un poste de journaliste de nouvelles. Depuis dix ans, il a couvert des événements majeurs tels que les élections présidentielles et les catastrophes naturelles. Il a été acclamé pour sa capacité à créer des récits captivants qui capturent l'expérience humaine.
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