Reddit's First Earnings Post-IPO: Revenue Up 48% to $243M, Stock Rises 15.8%

May 7, 2024, 08:14 PM

Reddit, following its recent initial public offering, has reported its first quarterly earnings with significant results. The company's revenue surged by 48% year-over-year to $243 million, driven by a 39% increase in advertising revenue which reached $222.7 million. Despite these gains, Reddit posted a net loss of $575.1 million, a substantial increase from the previous year's $60.9 million. The earnings per share (EPS) beat expectations at $0.30, and the gross margin improved by 500 basis points to 88.6%. Following the earnings release, Reddit's stock price saw a notable increase, with shares up by approximately 15.8% in after-hours trading.