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Reddit shares were up more that 15% in after-hours trading following the release of its quarterly results, marking its first earnings report since going public in March. The company reported a loss per share of $8.19, outperforming the expected loss of $8.71 per share by LSEG. Revenue reached $243 million, surpassing LSEG's expectation of $212.8 million and representing a 48% increase from the previous year. Reddit's advertising revenue for the period amounted to $222.7 million, showing a 39% year-over-year growth rate, which outpaced its major competitors.
- Despite reporting a net loss of $575.1 million, primarily driven by IPO-related charges, Reddit remains optimistic about its future prospects. For the second quarter, the company anticipates revenue between $240 million and $255 million, exceeding analysts' expectations and indicating a 32% growth compared to the same period last year.
Why it matters
Founded in 2005 by Alexis Ohanian and Steve Huffman, Reddit views its recent performance as the start of a new chapter in its journey. With a focus on building the next generation of Reddit, CEO Steve Huffman expressed enthusiasm about the company's direction in a recent statement.
