Reddit (RDDT) Q1 2024 Earnings | Wilnesh News

Reddit Shares rose 14% in after-hours trading Tuesday after the company reported its first quarterly results since its initial public offering in March.

Here’s what the company does:

• Loss per share: Loss per share was $8.19.This may not compare to LSEG’s expected loss of $8.71
• income: $243 million LSEG is expected to be $212.8 million

Revenue increased 48% from US$163.7 million in the same period last year. The company’s advertising revenue during the reporting period was US$222.7 million, an annual increase of 39%, and the growth rate was higher than that of its main competitors.

Digital advertising companies have started to grow healthily again after brands reduced spending to combat inflation in 2022. YuanAdvertising revenue grew 27% in the first quarter and then grew 24% Amazon and 13% growth Google parent letter.

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

According to LSEG, Reddit expects second-quarter revenue of $240 million to $255 million, higher than analysts’ expectations of $224 million. The midpoint of the guidance range points to growth of about 32% in the second quarter, up from $183 million in the same period last year.

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

“We see this as the beginning of a new chapter as we work to build the next generation of Reddit,” Huffman said in a press release on Tuesday.

Reddit begins trading under the ticker “RDDT” New York Stock Exchange in March. The company’s IPO was priced at $34 per share, valuing the company at approximately $6.5 billion. When tech stock valuations were booming in 2021, Reddit’s private market valuation reached $10 billion.

The stock climbed above $58 in after-hours trading Tuesday before recovering slightly. If the stock closes above $57.75 on Wednesday, it would hit its highest level since March 26, the fourth trading day. The stock closed the day at $65.11, a record high.

The company reported 82.7 million daily active users in the first quarter, above StreetAccount’s forecast of 76.6 million. Global average revenue per user increased 8% to US$2.94 from US$2.72 a year ago.

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

watch: Reddit stock climbs after earnings report