Reddit’s shares fell 11.7% to $191.00 in premarket trading despite reporting strong fourth-quarter earnings growth. The social network business saw daily active unique users jump 39% to 101.7 million, while revenue increased 71% year-over-year to $427.7 million.
Advertising revenue drove this growth, rising 60% to $394.5 million, with other income at $33.2 million. For the full year, Reddit’s net income rose 62%, reaching $1.3 billion. The company’s gross margin also increased to 92.6%.
On a per-share basis, net income was $0.36, while adjusted EBITDA surged to $154.3 million, up from a loss of $69.3 million in the previous year.
For 2025, Reddit forecasts sales between $360 million and $370 million for the first quarter. The company reported a financial loss of $484.3 million for the full year but saw adjusted EBITDA rise dramatically to $298.0 million.
Source: https://finance.yahoo.com/news/reddit-shares-drop-nearly-12-145216428.html