Reddit Users See An ‘Inverse Moment’ As Shares Pop 14% On Social Media Platform’s Financial Performance
Reddit Inc (NYSE:RDDT) recently released its first quarterly earnings report since its initial public offering (IPO) in March, causing its shares to surge by 14% in extended trading.
The social media platform’s financial results showed a loss per share of $8.19 — lower than the expected $8.71 loss. However, revenue exceeded expectations, coming in at $243 million compared to the estimated $212.8 million.
This marked a significant 48% increase from the previous year, with ad revenue alone reaching $222.7 million, up 39% year-over-year and outpacing its competitors.
Despite these positive numbers, Reddit reported a net loss of $575.1 million, attributed largely to stock-based compensation expenses and related taxes totaling $595.5 million, primarily driven by IPO charges.
Nonetheless, the company’s performance was seen as a strong indicator of its growth potential, with analysts noting that Reddit could become profitable soon, given its free cash flow this quarter …
Full story available on Benzinga.com