Reddit Exceeds Earnings Estimates But User Growth Misses Targets
Reddit (RDDT) reported stronger-than-expected fourth-quarter earnings, driven by robust revenue growth. However, user growth came below analyst estimates.
Key Financial Highlights:
* Revenue: $427.7 million, up 71% YoY
* Net income: $71 million, up 281% YoY
* Daily active users: 101.7 million, up 39% YoY
Analyst Consensus vs. Actual:
* Revenue: Consensus $425.9 million, Actual $427.7 million
* Net income: Consensus $66.9 million, Actual $71 million
* Daily active users: Consensus 103.24 million, Actual 101.7 million
Market Reaction:
Shares of Reddit initially surged in after-hours trading but later plunged 15% to $183.85 due to the disappointment in user growth.
Guidance:
Reddit expects first-quarter revenue between $360 million and $370 million, exceeding analyst estimates of $359.4 million.
Stock Performance:
Despite the post-earnings decline, Reddit's stock remains significantly above its March 2024 IPO price of $34, having risen nearly sevenfold.