- Loss per share: Loss of $8.19 per share. That may not compare to the $8.71 loss that LSEG expected
- he won: $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 struggled to spend to deal with inflation in 2022. Meta ad revenue jumped 27% in the first quarter, followed by 24% growth at Amazon and 13% growth at parent company Alphabet. For Google.
Reddit reported a net loss of $575.1 million. Stock-based compensation expense and related taxes were $595.5 million, primarily driven by IPO fees.
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 has started trading under the ticker symbol “RDDT” on the market 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 past $58 in after-hours trading on Tuesday. If the post-market rally continues into Wednesday, the stock will be at its highest levels since March 26, the fourth day of trading. Shares closed that day at $65.11, their highest level to date.
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 a year ago.
Reddit will hold its first quarterly call with investors at 5 p.m. ET.
He watches: Reddit shares rise after earnings
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