Source: Wall Street News
According to Reddit's financial report, the company's revenue growth rate exceeded market expectations by 48%, and the core revenue source, the advertising revenue growth rate, beat peers by 39%. Furthermore, the growth of Reddit daily active users exceeded expectations. At the same time, although the company continued to lose money, it was better than expected, and the loss was mainly due to IPO expenses. Furthermore, the company gave performance guidelines that were higher than expected.
On Wednesday, May 8, “US Tieba” Reddit released its quarterly earnings report for the first time since its launch in March. The company's performance exceeded market expectations, driving its stock price to rise more than 20% during after-hours trading.
Financial reports show that Reddit continues to lose money but better than expected, revenue growth exceeds market expectations, the company's advertising revenue growth rate beats peers, and user growth exceeds expectations:
In the Q1 quarter, Reddit's revenue increased 48% year over year to US$243 million, exceeding market expectations of US$213 million; net loss was US$575 million, including US$596 million in share-based compensation expenses and related taxes, mainly due to IPO expenses; and loss of $8.19 per share, better than market expectations of US$8.71.
Among them, advertising revenue, the core business that contributed most of its revenue, increased 39% year over year to US$223 million, surpassing its main competitor's growth rate. In comparison, Meta's ad revenue increased 27% in the first quarter, Amazon grew 24%, and Google's parent company Alphabet grew 13%.
According to Reddit, the number of daily active users in the first quarter was 82.7 million, exceeding market expectations of 76.6 million. Average global revenue per user increased 8% year over year, from $2.72 to $2.94 per user last year.
Looking ahead, Reddit expects revenue for the second quarter to be between $240 million and $255 million, higher than analysts' expectations of $224 million. According to LSEG data, the midpoint of the guidance range indicates that compared with US$183 million in the same period last year, the revenue growth rate for the second quarter was about 32%.
Since Reddit was co-founded in 2005 by Alexis Ohanian and Steve Huffman, the company's current CEO, it has evolved into a platform with millions of online forums. “We see this as the beginning of a new chapter, and we're working to build the next generation of Reddit,” Huffman said in a statement on Tuesday.
edit/lambor