Steve Huffman, Co-founder and CEO of Reddit, presented at the WSJ Tech Live conference on Montage Laguna Beach, California, on October 21, 2024 Speech.
Frederick J. Brown | AFP | Getty Images
reddit The company reported in its fourth-quarter earnings that stocks fell more than 10% on Wednesday.
Compared with LSEG estimates, the company’s performance:
- Earnings per share: 36 cents, estimated 25 cents
- income: $428 million Estimated to be $405 million
Reddit’s sales in the quarter rose 71% from $250 million a year ago, the fastest growth rate in any quarter since 2022.
The company said first-quarter sales will be $330 million to $370 million in the average analyst estimate of $358 million.
A year ago, net income almost tripled to $71 million or 36 cents per share, from $18.5 million or breakeven of earnings per share a year ago. Reddit reported adjusted earnings of $154 million in the fourth quarter, an analyst expects $128 million.
Although the company estimated revenue and revenue and issued guidance that exceeded expectations, its user base did not meet expectations.
The only unique feature of global daily activity has increased by 39% from the same period last year to an average of 101.7 million in the fourth quarter. The estimated one behind Wall Street is 103.1 million.
Reddit CEO Steve Huffman said in a letter to shareholders that changes in Google’s search algorithm caused some “volatility” in the fourth quarter, but the company’s search-related traffic was first The quarter has resumed.
“What happened is not uncommon – the referrals of searches fluctuate from time to time, and they mainly affect logged in users,” Hoffman wrote. “Our team has navigated many algorithm updates and has done so in effectively adapting to these latest changes.” very good.”
Reddit benefits from it Google Search Update And for the past year and a half, social companies have called it internal site improvements for logged-in users that have helped them gain a large number of new and redirected users. Reddit said it is working to convince logged in users to create accounts in the form of logged in users, which is more profitable for its business.
Dauq grew 27% to 46.1 million in the previous quarter, while Dauq rose 51% to 55.6 million, the company said.
Reddit’s fourth-quarter earnings followed several other online advertising technology companies that recently reported their latest quarterly earnings.
Amazon Report The fourth quarter revenue last Thursday, explain Its online advertising business was $17.29 billion in the fourth quarter, up 18% from the same period last year. Pinterest It also reported revenue for the fourth quarter of the day and said Sales volume During this period, it grew 18% a year ago to $1.15 billion.
letter also Report Last week, its fourth-quarter revenue and revealed that its Google ad sales rose 11% year-on-year to $72.46 billion, while YouTube ad revenue rose 14% to $100.47 billion. Break It also reported quarterly earnings for the past week and stated Fourth quarter revenue It increased by 14% year-on-year to $1.56 billion.
Yuan explain In January, the revenue was $48.39 billion in its fourth quarter, up 21% from the previous year. On the same day, Microsoft Report Its latest quarterly earnings and said its search and news advertising sales rose 21% year-on-year. Microsoft did not disclose the unit’s specific quarterly sales data.
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