Reddit (RDDT) Stock Rises After First Earnings Report Tops Estimates
May 08, 2024 - bloomberg.com
Reddit Inc.'s shares surged by up to 16% in premarket trading following enhancements to its advertising system that boosted quarterly sales beyond expectations in its initial results as a publicly-traded company. The social media platform's revenue rose by 48% to $243 million in the quarter ending March 31, surpassing the average analyst estimate of $211.9 million, according to data compiled by Bloomberg.
The company announced these results on Tuesday in a statement via the Bloomberg Terminal. The higher than expected sales were largely attributed to improvements made to Reddit's advertising system. This positive financial performance marks a strong start for Reddit as a public company.
Key takeaways:
Reddit Inc. shares increased by up to 16% in premarket trading due to improvements in the company's advertising system.
The improvements helped push quarterly sales higher than expected in Reddit's first results as a public company.
Reddit's revenue increased 48% to $243 million in the period ended March 31.
Analysts had estimated an average revenue of $211.9 million, according to data compiled by Bloomberg.
