SAN FRANCISCO — Shares in online discussion forum Reddit surged over 16% Tuesday in after-hours trading when the company released first quarter earnings for 2024.
This was the first earnings report for Reddit as a publicly-traded company.
“It was a strong start to the year and a milestone quarter for Reddit and our communities as we debuted as a public company,” said Steve Huffman, Co-Founder and CEO of Reddit. “We see this as the beginning of a new chapter as we work towards building the next generation of Reddit.”
- Daily active unique users (DAUq) increased 37% year-over-year to 82.7 million
- Weekly Active Uniques (“WAUq”) increased 40% year-over-year to 306.2 million
- Revenue increased 48% year-over-year to $243.0 million, Ad Revenue increased 39% year-over-year to $222.7 million
- Gross margin was 88.6%, an improvement of 500 basis points from the prior year
- Net loss was $575.1 million, as compared to $60.9 million in the prior year. Stock-based compensation expense and related taxes were $595.5 million, as compared to $13.2 million in the prior year, driven by IPO charges
- Adjusted EBITDA was $10.0 million, as compared to $(50.2) million in the prior year
- Operating cash flow was $32.1 million, an improvement of $28.0 million from the prior year
- Free Cash Flow was $29.2 million. Capital expenditures were $2.9 million
For the second quarter of 2024, Reddit projects revenue in the range of $240 million to $255 million. The company has over $1.67 billion in cash available.
Reddit also announced that Sarah Farrell, co-founder and Managing Partner of Waygrove Partnership, has joined Reddit’s Board of Directors. Sarah has served as a board observer since 2021 and will fill a new seat, increasing our Board to eight directors.
“Sarah’s expertise in finance and investing has been invaluable as we’ve made the transition to a public company,” said Steve Huffman, Co-Founder and CEO of Reddit. “This appointment is a testament to Sarah’s contributions, and I look forward to her continued impact on Reddit’s mission.”
“As a long-time Reddit user, I am excited to continue to partner with Steve and Reddit’s leadership as the company enters a new era of growth in the public markets,” said Sarah Farrell. “In a world where content is increasingly AI and influencer generated, Reddit remains one of the few uniquely human places on the internet.”
Previously, Sarah was a Partner at Inclusive Capital Partners and held investment and private equity roles at ValueAct Capital, The Blackstone Group, and J.P. Morgan. Sarah served on the boards of Verra Mobility Corporation, Kolmac Outpatient Recovery Centers, and Lindblad Expeditions Holdings, Inc. Sarah lives in San Francisco with her family and enjoys spending time in r/goldenretrievers, r/watercolor, and r/dramatichouseplants.
