Reddit Inc., which develops the social network of the same name, increased its revenue in the first quarter by 48%. The net loss also increased ninefold, as can be seen from the company’s report. The reason was one-time expenses associated with the IPO, which the company held in March.
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Reddit Inc.’s revenue increased by 48% in the first quarter, amounting to $243 million compared to $163.7 in the first quarter of 2023. From the press release it follows that the net losses in the first three months of the year They amounted to 575.1 million dollars. A year earlier, the figure was $60.9 million. The net loss was due, among other things, to IPO expenses.
Loss per share was $8.19, down from $1.05 a year earlier.
Reddit also increased the number of active users to 82.7 million. In the first quarter of 2023, there were 60.3 million.
The company expects second-quarter revenue of between $240 million and $255 million, slightly above analyst expectations of $227.5 million.
Amid news of revenue growth, the company’s shares rose 16% in additional trading on Tuesday in New York, Reuters writes. In total, during the last month its price rose almost 10%.
Reddit held an initial public offering on the New York Stock Exchange in March 2024. The amount of funds raised amounted to $748 million, and the company is valued at $6.4 billion.
Author:
Natalia Gormaleva
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
