Reddit: first publication welcomed by the stock market
May 08, 2024 at 11:48 am EDT
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Reddit reported better-than-expected performance last night in its first quarterly results since its IPO in March, figures that were greeted by a gain of over 2% on Wall Street today.
Last night, the social media company reported first-quarter sales up 48% year-on-year to $243 million, boosted by a 39% increase in advertising revenues ($222.7 million).
By way of comparison, the analyst consensus was for quarterly sales of around $212 million.
In other good news, the American group posted an operating profit (Ebitda) of $10 million, compared with a loss of over $50 million a year earlier.
The number of unique active users rose by 37% to 82.7 million, while the number of weekly active users increased by 40% to 306.2 million.
For the second quarter, Reddit is targeting sales of between $240 and $255 million, representing growth of between 31% and 39%, and Ebitda of between zero and $15 million, above expectations.
Although they are raising their price target from $50 to $57, BofA analysts believe that this solid performance will be difficult to repeat, as it will be boosted by new agreements concerning the use of its data, leading them to reiterate their 'neutral' opinion on the stock, which they believe incorporates a lot of good news.
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Reddit, Inc. operates a social platform, Reddit. The Company operates mobile applications and a Website that allows users to form communities and create and share content. Reddit is focused on bringing community, belonging, and empowerment to everyone in the world. Reddit is a global, digital city where anyone in the world can join a community to learn from one another, engage in authentic conversations, explore passions, research new hobbies, exchange goods and services, create new communities and experiences, share a few laughs, and find belonging. Reddit has thousands of communities, endless conversation, and authentic human connections. Reddit offers real-time access to evolving and dynamic topics, such as sports, movies, news, fashion, and the latest trends.