Zinger Key Points
- Reddit reports earnings of 13 cents per share, which beat the analyst consensus estimate of 2 cents.
- Quarterly revenue comes in at $392.36 million, beating the analyst consensus estimate of $370.01 million.
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Reddit, Inc. RDDT released its first-quarter results after Thursday's closing bell. Here's a look at the details from the quarter.
The Details: Reddit reported quarterly earnings of 13 cents per share, which beat the analyst consensus estimate of two cents. Quarterly revenue of $392.36 million beat the analyst consensus estimate of $370.01 million and is an increase of revenue of $242.96 million from the same period last year.
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For the first quarter, Reddit reported:
- Daily Active Uniques increased 31% year-over-year to 108.1 million.
- Ad revenue increased 61% year-over-year to $358.6 million, and Other revenue increased 66% year-over-year to $33.7 million.
- Gross margin was 90.5%, an improvement of 190 basis points from the prior year.
- Net income was $26.2 million, as compared to a net loss of $575.1 million in the prior year.
- Adjusted EBITDA was $115.3 million, an improvement of $105.2 million from the prior year.
- Operating cash flow was $127.6 million, an improvement of $95.5 million from the prior year.
- Free Cash Flow was $126.6 million and capital expenditures were $1 million, less than 1% of revenue.
“Over 400 million people now come to Reddit each week — because when you want real opinions, you turn to real people,” said Steve Huffman, CEO of Reddit. “Twenty years in, I have never been more excited about Reddit’s future than I am now. We’re growing and building a more valuable platform for community and human perspective.”
Outlook: Reddit estimates second-quarter revenue in the range of $410 million to $430 million, versus the $385.48 million estimate, and adjusted EBITDA in the range of $110 million to $130 million.
RDDT Price Action: According to data from Benzinga Pro, Reddit stock was up 18.43% after hours at $140.68 on Thursday.
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