Reddit Inc (NYSE:RDDT) reported fourth-quarter financial results on Thursday after the market close. Here’s what you need to know from the report.
- Reddit stock is moving after earnings. Why is RDDT stock trending?
Reddit Exceeds Analyst Estimates In Q4
Reddit reported fourth-quarter revenue of $725.61 million, beating the consensus estimate of $665.44 million, according to Benzinga Pro. The company posted fourth-quarter earnings of $1.24 per share, beating analyst estimates of 95 cents per share.
Total revenue climbed 70% on a year-over-year basis as daily active unique (DAUq) users increased 19% year-over-year to 121.4 million.
Reddit generated an operating cash flow of $267 million and a free cash flow of $264 million in the quarter. The company ended the quarter with approximately $2.48 billion in cash, cash equivalents and marketable securities.
“We’re entering the next era of Reddit — defined by sharper execution, global expansion, and product innovation that puts real people and conversations at the center,” said Steve Huffman, co-founder and CEO of Reddit. “Our focus is on turning Reddit’s authenticity into even more everyday utility.”
Reddit Issues Q1 Outlook, Announces $1B Buyback
Reddit expects first-quarter revenue to be in the range of $595 million to $605 million versus estimates of $577.17 million. The company anticipates first-quarter adjusted EBITDA of $210 million to $220 million.
Reddit also announced that its board approved a share repurchase program to purchase up to $1 billion of its common stock.
Reddit executives will further discuss the quarter on an earnings call with investors and analysts at 5 p.m. ET.
Reddit Stock Down After The Bell
RDDT Price Action: After an initial burst up, Reddit shares were down 2.02% in after-hours Thursday, trading at $148 at the time of publication, according to Benzinga Pro.
Image: Shutterstock.com
Recent Comments