Today, we shared our as a public company. During today’s conference call at 2 pm PT/5 pm ET, we’ll discuss these results and answer several questions submitted by redditors and equity research analysts.
How can I participate in today’s conference call?
You can listen to the live webcast .
Additionally, you can ask questions in the comments below about Reddit’s earnings results. Reddit’s CEO (), COO (), and CFO () will take a selection of your highest upvoted questions that follow general guidelines to read out and answer during the Q&A portion of today’s conference call.
General guidelines:
In the coming days, we’ll return to this community and respond to several remaining questions that were unanswered during the earnings call.
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Reddit Announces First Quarter 2024 Results
Record user traffic, Daily Active Uniques (“DAUq�) increased 37% to 82.7 million
Revenue increased 48% to $243.0 million, nearly doubling growth rate from prior quarter
Net loss driven by IPO expenses, first profitable Q1 on an Adjusted EBITDA basis
Operating cash flow of $32.1 million and positive free cash flow of $29.2 million
May 07, 2024
SAN FRANCISCO--(BUSINESS WIRE)--Reddit, Inc. (NYSE: RDDT) today announced financial results for the quarter ended March 31, 2024. Reddit’s complete financial results and management commentary can be found in its shareholder letter on Reddit’s Investor Relations website at and investor relations subreddit at .
“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.�
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DAUq increased 37% year-over-year to 82.7 million
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Weekly Active Uniques (“WAUq�) increased 40% year-over-year to 306.2 million
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Revenue increased 48% year-over-year to $243.0 million, Ad Revenue increased 39% year-over-year to $222.7 million
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Gross margin was 88.6%, an improvement of 500 basis points from the prior year
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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
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Adjusted EBITDA was $10.0 million, as compared to $(50.2) million in the prior year
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Operating cash flow was $32.1 million, an improvement of $28.0 million from the prior year
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Free Cash Flow was $29.2 million. Capital expenditures were $2.9 million
First Quarter 2024 Financial Highlights
Financial Outlook
The guidance provided below is based on Reddit’s current estimates and is not a guarantee of future performance. This guidance is subject to significant risks and uncertainties that could cause actual results to differ materially, including the risk factors discussed in Reddit’s reports on file with the Securities and Exchange Commission. Reddit undertakes no duty to update any forward-looking statements or estimates, except as required by applicable law.
As we look ahead, we will share our internal thoughts on revenue and Adjusted EBITDA for the second quarter.
In the second quarter of 2024, we estimate:
Board of Directors Update
We are pleased to announce 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 , , and .
Earnings Conference Call Information and Community Update
Reddit will host a conference call to discuss the results for the first quarter of 2024 on May 7, 2024, at 2:00 p.m. PT / 5:00 p.m. ET. A live webcast of the call can be accessed on Reddit’s Investor Relations website at and investor relations subreddit at . A replay of the webcast and transcript will be available following the conclusion of the conference call on the same websites.
Reddit will solicit questions from the community in the investor relations subreddit at on Tuesday, May 7, 2024, and post responses following the earnings call at Reddit’s Investor Relations website at and at .
Reddit uses the investor relations page on its website , as well as the subreddits and , available at and , respectively, as means of disclosing material non-public information and for complying with its disclosure obligation under Regulation FD.
