NYSE$RDDT

Reddit Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Reddit reported Q4 2024 revenue of $427.7 million, a 71% year-over-year increase, with net income rising to $71 million. However, the company missed analyst expectations for Daily Active Uniques, reporting 101.7 million against a consensus of 103.8 million. Following the earnings release, Reddit's stock experienced a significant decline in after-hours trading.

Headline financials

Total Revenue

$428M

Previous: $250M+71.3%
EPS (adj)

$0.36

Previous: $0.12+208.7%
Global DAUq

101.7M

No prior period
US DAUq

48.0M

No prior period
International DAUq

53.7M

No prior period
Global WAUq

379.4M

No prior period
Global ARPU

$4.21

Previous: $3.42+23.1%
US ARPU

$7.04

Previous: $5.51+27.8%
International ARPU

$1.67

Previous: $1.34+24.6%
Capital Expenditures

-$842K

Previous: -$4.6M+81.7%
Net Income

$71M

Previous: $18.5M+283.1%
Operating Income

$52.9M

Previous: $3.02M+1653.6%
Gross Profit

$396M

Previous: $217M+82.5%

Revenue & EPS history

Reddit Inc · Revenue · Quarterly

$428M

Q4 2024+71.3%vs Q4 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 expects Q1 2025 revenue to be in the range of $360M to $370M, with adjusted EBITDA between $80M and $90M. The company remains focused on growth initiatives and enhancing user engagement.

Tailwinds

  • Revenue growth momentum continues into Q1 2025.
  • Strong improvement in adjusted EBITDA margins.
  • Increased user engagement and DAUq growth.
  • Positive cash flow generation from operations.
  • International expansion showing strong growth potential.

Headwinds

  • Market uncertainties could impact ad revenue growth.
  • Competition in the digital advertising space remains intense.
  • User acquisition costs may increase due to expansion efforts.
  • Potential macroeconomic headwinds affecting consumer spending.
  • Operational costs expected to rise with further scaling.

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 Q4 2024

Historical avgQ4 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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