Reddit Incurs $575 Million Quarterly Loss Despite 48 Percent Revenue Growth

Social media firm Reddit posted a loss of more than a half-billion dollars for its first quarterly earnings report post-IPO.

Net loss for first quarter 2024 was $575.1 million, with Reddit blaming the loss on “IPO expenses.” The company launched its IPO in March, and started trading on the New York Stock Exchange from March 21 under ticker symbol RDDT. This was the tech company’s first earnings report as a public firm. The $575.1 million loss was up from the $60.9 million loss registered in the same period last 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.” Stock-based compensation refers to paying a company’s employees, executives, and directors with equity in the firm.

Despite the multimillion-dollar loss, Reddit announced strong growth in the first quarter. Revenue was up 48 percent, at $243 million, while ad revenue jumped 39 percent, to $222.7 million. The company reported “record user traffic,” with daily active uniques (DAUq) rising 37 percent, to 82.7 million.

Read Full Article Here