New York, NY – Reddit CEO Steve Huffman embraced the company’s mascot Snoo as Reddit made its debut on the New York Stock Exchange (NYSE) on March 21, 2024. After the company released its first quarterly results since the IPO, Reddit shares surged in after-hours trading on Tuesday.
The social media platform reported a loss per share of $8.19, which outperformed the $8.71 loss expected by financial analysts. Additionally, Reddit’s revenue reached $243 million, surpassing the $212.8 million projected by analysts. The company experienced a 48% increase in revenue from the previous year, with $222.7 million generated from advertising, marking a 39% growth from the previous year and outpacing its competitors.
Digital advertising companies, including Meta and Alphabet, have shown promising growth, following a period of reduced spending due to economic uncertainties. Meta’s ad revenue rose by 27% in the first quarter, while Amazon and Google parent Alphabet reported 24% and 13% growth, respectively.
Despite reporting a net loss of $575.1 million, Reddit remains optimistic about its future performance. The company expects second-quarter revenue to range between $240 million and $255 million, projecting a 32% growth compared to the previous year. This outlook exceeds the $224 million anticipated by analysts.
Founded in 2005 by Alexis Ohanian and Steve Huffman, Reddit has since become a leading platform for online forums. Huffman expressed his excitement for the company’s future, stating, “We see this as the beginning of a new chapter as we work towards building the next generation of Reddit.”
Since its IPO at $34 per share, Reddit’s stock soared to over $58 in after-hours trading. The platform reported 82.7 million daily active users for the first quarter, exceeding expectations. The company’s average revenue per user also increased to $2.94 worldwide.
As Reddit continues to grow, it remains poised to solidify its position in the digital advertising market. The company’s strong performance in its first quarterly report post-IPO signals a promising future ahead.