Reddit shares soar almost 20% after company reports revenue pop in first earnings report since IPO

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Reddit Inc News

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Reddit reported a big increase in sales for the first quarter and said second-quarter revenue will jump by more than 30%, based on the midpoint of the range.

Revenue increased 48% to $243 million for the first quarter.Reddit CEO Steve Huffman hugs mascot Snoo as Reddit begins trading on the New York Stock Exchange in New York on March 21, 2024.Revenue climbed 48% from $163.7 million a year earlier. The company reported $222.7 million in ad revenue for the period, up 39% year over year, which is a faster rate of growth than at its top competitors.Reddit reported a net loss of $575.1 million.

For the second quarter, Reddit expects revenue of $240 million to $255 million, topping the $224 million expected by analysts, according to LSEG. The midpoint of the guidance range suggests 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 towards building the next generation of Reddit," Huffman said in a release Tuesday.New York Stock Exchange in March. The company priced its IPO at $34 per share, which valued the company around $6.5 billion. When tech valuations were red hot in 2021, Reddit's private market valuation reached $10 billion.The company reported 82.7 million daily active users for its first quarter, up from the 76.

 

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