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 extended trading Tuesday after the company released quarterly results for the first time since its IPO in March.
Here's how the company did:
Loss per share: $8.19. That may not compare to the $8.71 loss expected by LSEG Revenue: $243 million vs. $212.8 million expected from LSEG
Revenues were up 48% from $163.7 million the previous year. The company recorded $222.7 million in advertising revenue for the period, up 39% year over year, a faster growth rate than its top competitors.
Digital advertising companies are starting to grow again at a healthy pace after brands cut back on spending to deal with inflation in 2022. deadAdvertising revenue jumped 27% in the first quarter, followed by 24% growth in Amazon And 13% growth Google native alphabet.
Reddit reported a net loss of $575.1 million. Stock-based compensation expense and related taxes were $595.5 million, primarily driven by fees resulting from the initial public offering.
For the second quarter, Reddit expects revenue of between $240 million to $255 million, exceeding the $224 million that analysts expected, according to LSEG. The midpoint of the guidance range indicates growth of about 32% for the second quarter, up from $183 million from 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 see this as the beginning 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 symbol “RDDT” on the New York Stock Exchange in March. The company priced its IPO at $34 per share, valuing the company at about $6.5 billion. When tech valuations were red hot in 2021, Reddit's private market valuation reached $10 billion.
The stock rose to above $58 in after-hours trading on Tuesday before bouncing back slightly. If shares close above $57.75 on Wednesday, they will be at their highest levels since March 26, the fourth day of trading. Reddit closed that day at $65.11.
The company reported 82.7 million daily active users in the first quarter, up from the 76.6 million expected by StreetAccount. Average revenue per user worldwide rose 8% to $2.94 from $2.72 last year.
