Shares of Reddit (NYSE:RDDT) jumped as much as 19% in after-hours trading on Thursday after the social media company posted better-than-expected first-quarter results and issued an upbeat outlook. The company said daily active uniques (DAUq), its key user metric, grew 31% year-over-year to 108.1 million.
Reddit, Inc. (NYSE:RDDT ) Q1 2025 Earnings Conference Call May 1, 2025 5:00 PM ET Company Participants Jesse Rose - Head, IR Steven Huffman - Co-Founder and CEO Jennifer Wong - COO Andrew Vollero - CFO Conference Call Participants Ron Josey - Citi Andrew Boone - JMP Securities Benjamin Black - Deutsche Bank Tom Champion - Piper Sandler Ken Gawrelski - Wells Fargo John Colantuoni - Jefferies Eric Sheridan - Goldman Sachs Richard Greenfield - LightShed Alan Gould - Loop Capital Dan Salmon - New Street Research Operator [abrupt start] and I will be your conference operator today. At this time, I would like to welcome everyone to Reddit's Q1 2025 Earnings Call.
While the top- and bottom-line numbers for Reddit Inc. (RDDT) give a sense of how the business performed in the quarter ended March 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Reddit's stock surged as much as 19% post-Q1 earnings report, showing strong revenue growth. The company reported a 61% year-over-year revenue increase, marking consistent growth.
Reddit Inc. (RDDT) came out with quarterly earnings of $0.13 per share, beating the Zacks Consensus Estimate of $0.02 per share. This compares to earnings of $0.29 per share a year ago.
Reddit stock is flying in late trading after the company known for rollicking forums and "upvotes" offered some reasons for optimism about the advertising market.
For the second quarter, Reddit expects revenue of $410 million to $430 million, above analyst expectations for $391.8 million.
Reddit Inc. shares skyrocketed 18% in extended trading after the social-media platform's first-quarter daily active users, revenue and profit topped Wall Street's expectations.
RDDT's first-quarter performance shows strong ad growth, but rising competition and a premium valuation make it a risky investment ahead of earnings.
Meta (META) isn't the only social media company reporting earnings this week.
RDDT suffers from intense competition, market volatility and premium valuation, making it a risky bet for investors despite growth initiatives.
Reddit (RDDT 5.44%) went public just over a year ago, and its stock soared 562% from its IPO price of $34 to a record closing high of $225.23 this February. The social media company dazzled investors with its accelerating growth and rising profits.