Reddit Inc. (RDDT) reported $392.36 million in revenue for the quarter ended March 2025, representing a year-over-year increase of 61.5%. EPS of $0.13 for the same period compares to $0.29 a year ago.The reported revenue represents a surprise of +5.45% over the Zacks Consensus Estimate of $372.09 million. With the consensus EPS estimate being $0.02, the EPS surprise was +550.00%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall S ...

Reddit Inc. (RDDT) came out with quarterly earnings of $0.13 per share, beating the Zacks Consensus Estimate of $0.02 per share. This compares to earnings of $0.29 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 550%. A quarter ago, it was expected that this company would post earnings of $0.25 per share when it actually produced earnings of $0.36, delivering a surprise of 44%.Over the last four quarters, the company has surpa ...

Reddit said advertising revenue rose 61% to $358.6 million on higher impressions and prices. Photo: dado ruvic/ReutersReddit logged higher revenue and swung to a profit in the first quarter as advertising revenue rose on higher impressions and prices.The social media company on Thursday swung to a profit of $26.2 million, or 13 cents a share, from a loss of $575.1 million, or $8.19 a share, a year earlier. ...

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $392 million, up 61% year over year, marking the third consecutive quarter of growth over 60% [8][19][30] - Adjusted EBITDA reached $115 million, with a margin of 29%, up over 2,500 basis points year over year [32][34] - GAAP net income was $26 million, or $0.14 per basic share and $0.13 per diluted share [41][42] - Operating cash flow exceeded $100 million for the first quarter, ending at $128 million, the highest ever [34][40] Business Line Data and Key Metrics Changes - Advertising revenue grew 61% year over year to $359 million, driven by broad-based strength across objectives, channels, verticals, and geographies [20][30] - Other revenue, including data licensing, reached $34 million, growing 66% year over year [34] - The total number of active advertisers grew over 50% year over year in Q1 [22] Market Data and Key Metrics Changes - U.S. ad revenue grew 56% year over year, while international ad revenue grew 83% year over year, the fastest growth rate in three years [23][35] - Unique weekly users reached 401 million, and daily users reached 108 million, both up 31% year over year [8][19] Company Strategy and Development Direction - The company aims to enhance its core product and advertising business while focusing on international growth and improving user experience [12][14][19] - The strategy includes becoming a truly global platform with machine translation available in 13 languages and focusing on community-driven content [14][16] - The company is committed to maintaining its unique community model and improving user engagement through product enhancements [17][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainty in the macro environment but expressed confidence in the company's ability to deliver profitable outcomes for customers [50][51] - The company expects revenue in Q2 2025 to be in the range of $410 million to $430 million, representing 46% to 53% year-over-year growth [41][42] - Management emphasized that Reddit's unique value proposition lies in authentic human answers, which the company is focused on preserving [43][44] Other Important Information - The company is investing in hiring and technology, particularly in sales and engineering, to support growth [37][38] - The company has over $1 billion in cash, allowing for potential future investments [92] Q&A Session Summary Question: What is the current state of the advertising market and its impact on the business? - Management noted that while there is uncertainty in the market, they are well-positioned with their roadmap and are delivering profitable outcomes for customers [50][51] Question: How is user growth expected to trend for the remainder of the year? - Management reported that daily active users were growing in the high teens year over year and emphasized that short-term bumps do not affect long-term strategy [55] Question: Can you discuss the drivers of pricing and how it compares to other platforms? - Management indicated that pricing is an outcome of supply and demand, and they are competitive in delivering market outcomes for advertisers [63][64] Question: What is the status of the Answers feature and its integration into Reddit? - Management shared that Answers has reached 1 million weekly users and is being integrated into the core search experience [66][68] Question: How are contribution rates trending with user growth? - Management highlighted efforts to improve contribution success rates for new users, which enhances the overall user experience [75] Question: How does Google treat machine-translated content? - Management confirmed that Google supports their use of machine translation, which helps increase user-generated content in more languages [86][87] Question: Why not invest more given strong revenue growth? - Management stated that they aim for revenue growth to be twice as fast as cost growth and are focused on sustainable investments [88][92]

Reddit CEO Steve Huffman stands on the floor of the New York Stock Exchange (NYSE) after ringing a bell on the floor setting the share price at $47 in its initial public offering (IPO) on March 21, 2024 in New York City.Reddit reported first-quarter earnings Thursday that beat Wall Street expectations on sales and guidance.Shares of the social media company rose more than 16% in after-hours trading.Here's how the company did compared with LSEG estimates:Earnings per share: 13 cents vs. 2 cents expectedReven ...

Reddit (RDDT) is set to release its first-quarter 2025 results on Thursday.For the first quarter of 2025, the company expects revenues between $360 million and $370 million, representing 48% to 52% year-over-year revenue growth, with a midpoint of 50%. The Zacks Consensus Estimate for first-quarter revenues is pegged at $372.09 million, indicating a year-over-year increase of 53.15%.The consensus mark for earnings is pegged at 3 cents per share, which has increased by a penny in the past 30 days. RDDT’s ear ...

Reddit (RDDT) shares have plunged 26.5% in the year-to-date period, underperforming the broader Zacks Computer & Technology sector’s decline of 11% and the Zacks Internet - Software industry’s rise of 5.8%.The underperformance can be attributed to the worsening macroeconomic environment following U.S. President Donald Trump’s decision to levy tariffs on trading partners, including China and Mexico. Intense competition from other social media platforms is consistently affecting user engagement and market sha ...

Core Viewpoint - Reddit has experienced significant growth since its IPO, but recent stock price volatility raises questions about its valuation and future potential [1][2][13] Growth Metrics - Reddit's unique platform combines news aggregation, discussion forums, and social media, allowing it to carve out a niche in the market [4] - The company measures growth through daily active unique (DAUq) users, with a notable increase in logged-in users, which enhances monetization opportunities [5][6] - DAUq users grew from 82.7 million in Q1 2024 to 101.7 million in Q4 2024, reflecting a growth rate of 48% to 39% over the quarters [7] - The percentage of logged-in DAUq users increased from 37% in Q1 2024 to 45% in Q4 2024, contributing to average revenue per user (ARPU) growth [8] Revenue and Profitability - Reddit's revenue growth year-over-year accelerated from 48% in Q1 2024 to 71% in Q4 2024, driven by increased user engagement and advertising [8] - The company expects revenue for Q1 2025 to rise by 48% to 52% year-over-year, with a projected full-year revenue of $1.77 billion, reflecting a 36% increase [10] - Reddit turned profitable on a GAAP basis in the second half of 2024, with net income margins improving from -236.7% in Q1 2024 to 16.6% in Q4 2024 [9][10] Valuation and Market Position - Reddit's enterprise value stands at $19.3 billion, trading at 11 times this year's sales and 34 times its adjusted EBITDA, indicating a reasonable valuation relative to its growth potential [11] - The platform's blend of features continues to attract users and generate data for targeted advertising, suggesting further growth opportunities [12] Future Outlook - Analysts expect Reddit to maintain growth momentum, but macroeconomic factors such as tariffs and trade wars could impact advertising spending [12] - Despite recent stock volatility, Reddit is viewed as a potential growth stock for long-term investors [13]

Core Viewpoint - Reddit's stock has seen a significant rebound, primarily driven by broader market recovery and positive sentiment from Alphabet's earnings report, despite no specific news from the company [1][5]. Group 1: Stock Performance - Reddit shares increased by 26% for the week, reflecting a recovery from previous declines due to economic weakness [2]. - The stock jumped 20% over a three-day period from Tuesday to Thursday, followed by an additional 5.3% increase on Friday after Alphabet's strong earnings report [5]. Group 2: Economic Sensitivity - Reddit is considered economically sensitive, with most of its revenue generated from advertising, which tends to decline during economic downturns [4]. - The company is also focusing on artificial intelligence as part of its long-term strategy for monetizing content [4]. Group 3: Future Outlook - Reddit is set to report earnings next week, with analysts projecting a 52% revenue increase to $370 million and an expected per-share profit of $0.02 [6]. - The potential for stock growth exists if Reddit can maintain steady growth despite economic challenges [6].

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