Reddit CEO Steve Huffman hugs mascot Snoo as Reddit begins trading on the New York Stock Exchange (NYSE) in New York on March 21, 2024.
Timothy A. Clary | AFP | Getty Images
Reddit Shares rose 14% in prolonged trading on Tuesday after the corporate reported quarterly results for the primary time since going public in March.
This is how the corporate did it:
- Loss per share: $8.19 loss per share. This may not compare to LSEG’s expected lack of $8.71
- Revenue: $243 million versus $212.8 million expected from LSEG
Revenue rose 48% from $163.7 million a yr ago. The company reported promoting revenue of $222.7 million for the period, up 39% year-over-year, a faster growth rate than its primary competitors.
Digital promoting corporations have returned to healthy growth after brands increased spending to address inflation in 2022. MetaAdvertising revenue increased 27% in the primary quarter, followed by growth of 24% Amazon and 13% growth Google parent alphabet.
Reddit reported a net lack of $575.1 million. Stock-based compensation expense and related taxes were $595.5 million, primarily attributable to IPO costs.
According to LSEG, Reddit expects second-quarter revenue of $240 million to $255 million, exceeding analysts’ expectations of $224 million. The midpoint of the forecast range suggests growth of about 32% for the second quarter, up from $183 million a yr ago.
Reddit, which hosts tens of millions of online forums on its platform, was founded in 2005 by Alexis Ohanian and Steve Huffman, the corporate’s CEO.
“We view this as the beginning of a new chapter as we work to build the next generation of Reddit,” Huffman said in a press release Tuesday.
Reddit began trading under the ticker symbol “RDDT” on New York Stock Exchange in March. The company priced its IPO at $34 per share, valuing the corporate at about $6.5 billion. When tech valuations were red-hot in 2021, Reddit’s private market valuation reached $10 billion.
The stock climbed above $58 in after-hours trading on Tuesday before recovering somewhat. If the stock closes above $57.75 on Wednesday, it might be at its highest level since March 26, its fourth day of trading. Shares closed at $65.11 on the day, their highest level to this point.
The company reported 82.7 million every day energetic users in the primary quarter, up from StreetAccount’s expected 76.6 million. Average revenue per user worldwide increased 8% to $2.94 from $2.72 last yr.
REGARD: Reddit shares rise after earnings
