NYSE$RDDT

Reddit Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Reddit Inc's Q1 2024 earnings showcased strong user growth and revenue increase, marking its first profitable Q1 on an Adjusted EBITDA basis since its IPO.

Reddit Inc. announced a strong start to 2024 with significant growth in user traffic and revenue. Daily Active Uniques (DAUq) increased by 37% to 82.7 million, and revenue grew by 48% to $243.0 million. The company reported a net loss primarily due to IPO expenses but achieved its first profitable Q1 on an Adjusted EBITDA basis. Operating cash flow was $32.1 million, and free cash flow was $29.2 million.

  • Daily Active Uniques (DAUq) increased by 37% year-over-year to 82.7 million.
  • Revenue increased by 48% year-over-year to $243.0 million, with ad revenue up by 39% to $222.7 million.
  • Gross margin improved to 88.6%, a 500 basis points increase from the prior year.
  • First profitable Q1 on an Adjusted EBITDA basis with $10.0 million, compared to $(50.2) million in the prior year.

Headline financials

Total Revenue

$243M

Previous: $164M+48.4%
EPS

-$8.19

Previous: -$1.05-680.0%
Global DAUq

82.7M

Previous: 60.3M+37.1%
US DAUq

41.5M

Previous: 28.6M+45.1%
International DAUq

41.2M

Previous: 31.7M+30.0%
Global WAUq

306.2M

Previous: 218.0M+40.5%
Global ARPU

$2.94

Previous: $2.72+8.1%
US ARPU

$4.77

Previous: $4.62+3.2%
International ARPU

$1.10

Previous: $1.00+10.0%
Capital Expenditures

-$2.85M

Previous: $356K-900.8%
Free Cash Flow

-$578M

Previous: $3.72M-15639.6%
Net Income

-$575M

Previous: -$60.9M-844.8%
Operating Income

-$589M

Previous: -$70.6M-734.6%
Gross Profit

$215M

Previous: $137M+57.3%
Cash & Equivalents

$969M

Previous: $525M+84.4%
Total Assets

$2.02B

No prior period
R&D Expense

$435M

No prior period
Stock-Based Comp

$578M

Previous: $12.5M+4527.5%

Revenue & EPS history

Reddit Inc · Revenue · Quarterly

$243M

Q1 2024+48.4%vs Q1 2023
Beat estimate in 9 of 9 quarters(100%)
ActualEstimate

Revenue by segment

Reddit Inc · $247M total across 1 segment · Q4 2023

  • Advertising
    $247M

Forward guidance

Reddit estimates revenue in the range of $240 million to $255 million and Adjusted EBITDA in the range of $0 to $15 million for the second quarter of 2024.

Tailwinds

  • Revenue in the range of $240 million to $255 million.
  • Adjusted EBITDA in the range of $0 to $15 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 12 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+9.0%

Avg return

Earnings day

+9.0%

Avg return

5 days after

+18.8%

Avg return

30 days after

67%

8 / 12 earnings

Positive

+46.0%

Q3 2023

Best reaction

-10.8%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+12.5%+13.1%+19.4%
Q4 2025-7.4%-7.8%-7.7%
Q3 2025+5.3%+1.0%+11.3%
Q2 2025+17.2%+32.5%+40.2%
Q1 2025-4.2%-11.2%-5.4%
Q4 2024-5.3%-13.6%-40.8%
Q3 2023+46.0%+33.4%+72.1%
Q3 2024+45.6%+41.8%+75.8%
Q2 2023+1.1%-3.4%+4.6%
Q2 2024-10.8%-6.9%+3.3%
Q1 2023+1.4%+17.8%+21.1%
Q1 2024+6.5%+10.9%+31.5%
Q4 2023
Q4 2022
Q3 2022
Q2 2022
Q1 2022
Q4 2021
Q3 2021
Q2 2021
Q1 2021
Q4 2020

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