Reddit (NYSE:RDDT) is a San Fransisco-based website that organizes digital communities. The company launched its initial public offering (IPO) on March 21, 2024. Its shares were priced at $34, and the stock got off to a strong start in its first day of trading. Shares of Reddit were up 12% in after-hours trading on Tuesday, May 7, 2024. It derived momentum from its first-ever earnings release.
The company unveiled its first quarter (Q1) fiscal 2024 earnings after markets closed on May 7. Reddit reported that Daily Active Uniques (DAUq) in the quarter climbed 37% year-over-year to 82.7 million. Meanwhile, Weekly Active Uniques (WAUq) jumped 40% to 306.2 million. Reddit posted revenue growth of 48% to $243 million, while ad revenue jumped 39% year-over-year to $222.7 million.
Reddit’s net loss was reported at $575 million – compared to $60.9 million in the previous year. However, stock-based compensation expense and related taxes came out at $595.5 million – up from $13.2 million in Q1 2023. EBITDA stands for earnings before interest, taxes, depreciation, and amortization, and aims to give a clearer picture of a company’s profitability. Reddit delivered an adjusted EBITDA of $10.0 million – up from an adjusted EBITDA loss of $50.2 million in the prior year.
The company reported free cash flow of $29.2 million while capital expenditures stood at $2.9 million. Reddit has started hot out of the gate, and looks primed for strong revenue and earnings growth in the near term.