Reddit Reports 48% Revenue Growth in Q1 2024, Daily Active Users Surpass 82.7 Million

New York, New York, USA United States of America
CEO Steve Huffman attributed growth to product updates and content recommendations
Daily active users reached 82.7 million, up from 76.6 million in Q4 2023
Net loss of $575.1 million due to stock-based compensation expenses from IPO
Reddit reported 48% revenue growth to $243 million in Q1 2024
Reddit Reports 48% Revenue Growth in Q1 2024, Daily Active Users Surpass 82.7 Million

Reddit, the popular social media platform known for its online communities and forums, reported strong financial results in its first earnings report since going public in March. The company's revenue grew by 48% to $243 million in the first quarter of 2024, surpassing analysts' estimates of $211.9 million.

The growth was driven by improvements to Reddit's advertising system and an increase in daily active users, which reached 82.7 million, up from 76.6 million in the previous quarter and higher than the estimated 77.35 million.

Reddit CEO Steve Huffman attributed the growth to product updates and content recommendations that help users find relevant content on the platform.

The company reported a net loss of $575.1 million, primarily due to stock-based compensation expenses related to its IPO. However, for the second quarter, Reddit expects revenue of $240 million to $255 million and Adjusted Ebitda in a range of $0 to $15 million.

Reddit's strong financial performance comes as other digital advertising companies such as Meta, Amazon, and Google parent Alphabet also reported robust revenue growth in the first quarter.

The social media platform was founded in 2005 by Alexis Ohanian and Steve Huffman. It began trading under the ticker symbol 'RDDT' on the New York Stock Exchange in March, with an IPO price of $34 per share that valued the company around $6.5 billion.

Reddit's stock soared in after-hours trading following the earnings report, reaching a high of $58 before coming back slightly. The shares closed at their highest yet on March 26, at $65.11.


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Confidence

95%

Doubts
  • Are there any potential risks to Reddit's growth moving forward?
  • Is the net loss a cause for concern?

Sources

100%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Reddit shares soar 14% after company reports revenue pop in debut earnings report

CNBC News Ashley Capoot Tuesday, 07 May 2024 20:13
  • Unique Points
    • Reddit reported a net loss of $575.1 million.
    • Reddit was founded in 2005 by Alexis Ohanian and Steve Huffman.
    • Reddit began trading under the ticker symbol ‘RDDT’ on the New York Stock Exchange in March.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

100%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Reddit stock soars on Q2 forecast

Yahoo Finance Josh Lipton Tuesday, 07 May 2024 22:58
  • Unique Points
    • Reddit reported first quarter revenue of $243 million, higher than estimated.
    • Daily active users were 82.7 million, higher than estimated.
    • Second quarter revenue is expected to be between $240 million and $255 million, higher than estimated.
    • Second quarter Adjusted Ebitda is expected to be between $0 and $15 million, an improvement from the expectation of a loss.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

93%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Reddit Posts $575 Million Loss Tied to I.P.O. but Also Strong Growth

The Name Of The NZ Prefix. I PWA NZI.P.Was Dropped. Mike Isaac Tuesday, 07 May 2024 20:08
  • Unique Points
    • Reddit reported a 48% increase in quarterly revenue to $243 million
    • Daily active users jumped to 82.7 million, up 37% from a year earlier
    • Steve Huffman, Reddit’s CEO, attributed the growth to product updates and content recommendations
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (80%)
    The article reports both the financial losses and the growth of Reddit. While it is important to disclose losses in an earnings report, the title and initial statement focus primarily on the loss. This can be misleading as it does not accurately reflect the overall picture presented in the article. The author also makes editorializing statements such as 'Reddit on Tuesday posted a more than $500 million quarterly loss' and 'The result sent Reddit’s shares soaring 17 percent to $58 in after-hours trading'. These statements are not factual and can be considered sensationalized.
    • Reddit on Tuesday posted a more than $500 million quarterly loss
    • The result sent Reddit’s shares soaring 17 percent to $58 in after-hours trading
  • Fallacies (90%)
    The article contains some inflammatory rhetoric and appeals to authority, but no formal logical fallacies. The author makes statements such as 'Reddit's first earnings report as a public company showed leaps in users and advertising revenue', which is an appeal to authority based on the author's previous coverage of Reddit. Additionally, phrases like 'the social media company also saw robust revenue and user growth' use inflammatory language to present the information in a positive light. However, these instances do not constitute formal logical fallacies.
    • ]U.S.WorldBusinessArtsLifestyleOpinionAudioGamesCookingWirecutterThe Athletic Advertisement SKIP ADVERTISEMENT You have a preview view of this article while we are checking your access. When we have confirmed access, the full article content will load.
    • ]Reddit’s first earnings report as a public company showed leaps in users and advertising revenue, along with expenses related to its initial public offering.[/example]
    • ]On Tuesday, the company reported a 48 percent increase in quarterly revenue.[/example]
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

100%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Reddit (RDDT) Stock Rises After First Earnings Report Tops Estimates

Bloomberg News Now Aisha Counts Tuesday, 07 May 2024 23:00
  • Unique Points
    • Reddit Inc. shares jumped more than 10% in extended trading after first earnings report.
    • Improvements to Reddit’s advertising system helped push quarterly sales higher than expected.
    • Quarterly sales were $243 million, an increase of 48% from the previous period.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication