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Mar 31, 2024

Reddit Inc Q1 2024 Earnings Report

Reddit Inc's Q1 2024 earnings showcased strong user growth and revenue increase, marking its first profitable Q1 on an Adjusted EBITDA basis since its IPO.

Key Takeaways

Reddit Inc. announced a strong start to 2024 with significant growth in user traffic and revenue. Daily Active Uniques (DAUq) increased by 37% to 82.7 million, and revenue grew by 48% to $243.0 million. The company reported a net loss primarily due to IPO expenses but achieved its first profitable Q1 on an Adjusted EBITDA basis. Operating cash flow was $32.1 million, and free cash flow was $29.2 million.

Daily Active Uniques (DAUq) increased by 37% year-over-year to 82.7 million.

Revenue increased by 48% year-over-year to $243.0 million, with ad revenue up by 39% to $222.7 million.

Gross margin improved to 88.6%, a 500 basis points increase from the prior year.

First profitable Q1 on an Adjusted EBITDA basis with $10.0 million, compared to $(50.2) million in the prior year.

Total Revenue
$243M
Previous year: $164M
+48.4%
EPS
-$8.19
Previous year: -$1.05
+680.0%
Global DAU
82.7M
Previous year: 60.3M
+37.1%
US DAU
41.5M
Previous year: 28.6M
+45.1%
ROW DAU
41.2M
Previous year: 31.7M
+30.0%
Gross Profit
$212M
Previous year: $137M
+54.6%
Cash and Equivalents
$969M
Previous year: $525M
+84.4%
Free Cash Flow
$29.2M
Previous year: $3.72M
+685.2%
Total Assets
$2.02B

Reddit Inc

Reddit Inc

Reddit Inc Revenue by Segment

Reddit Inc Revenue by Geographic Location

Forward Guidance

Reddit estimates revenue in the range of $240 million to $255 million and Adjusted EBITDA in the range of $0 to $15 million for the second quarter of 2024.

Positive Outlook

  • Revenue in the range of $240 million to $255 million.
  • Adjusted EBITDA in the range of $0 to $15 million.