Reddit shares sink despite Q4 profit beat
Investing.com -- Reddit Inc (NYSE: RDDT ) reported a better than expected fourth-quarter earnings helped by user growth and higher advertising revenue. But Reddit shares, which has gained roughly 31% so far this year, were trading down about 14% in the aftermarket trading.
The social media platform posted earnings per share of $0.36 for the quarter, beating analysts’ expectations of $0.25. Revenue rose to $427.7 million, up from $405.6 million a year earlier.
Daily active uniques, a key metric for engagement, increased 39% year-over-year to 101.7 million.
Reddit projected first-quarter 2025 revenue of $360 million to $370 million, exceeding the consensus estimate of $358.44 million. The company expects adjusted EBITDA to be in the range of $80 million to $90 million.