Stock soars on Reddit following strong revenue growth and optimistic sales forecast
Reddit's Stock Skyrockets in After-Hours Trading!
Take a wild ride with Reddit, the platform famous for its raucous forums and "upvotes," as its stock flew high in late trading due to some promising news about the advertising market.
The thrilling session saw Reddit's share price soaring by an impressive 19.5%, following the release of their Q1 2025 financial results.1 The impressive revenue, over $392 million, represented an colossal 60% increase and smashed the Visible Alpha consensus estimate, while net income also surpassed expectations.
If you're new to the Reddit scene (RDDT), the company's strong performance leaves 'em hootin' and hollerin'. In an interview with Bloomberg, COO Jennifer Wong even suggested that, while they can't deny the presence of broader economic concerns, "it's mostly been business as usual."
Reddit isn't invincible to the ups and downs of the market, but their recent performance suggests they're holding their own. Contrast this with Snapchat parent Snap (SNAP) earlier this week, who refrained from disclosing their Q2 outlook and announced cost-cutting plans while unveiling their own results.
Reddit lined up an ambitious Q2 2025 revenue range, with the $420 million midpoint placing them comfortably above the $394 million consensus target. If that doesn't tickle your fancy, their annual losses seem like a distant memory.
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Fun Facts:
- Reddit forms part of a small club of internet companies—including Google, Facebook, and Amazon—to achieve billion-dollar market cap valuations in 2021.
- Reddit's DAUq (Daily Active Unique Users) soared by 31% in Q1 2025, indicating increased user engagement on the platform.
- Reddit's Q1 2025 revenue represented a astounding 61% increase compared to the same quarter in 2024.
- Reddit's gross margin expanded to a whopping 90.5% in Q1 2025, demonstrating their efficiency as they scale.
- Advertising revenue accounted for an overwhelming $358.6 million of Reddit's total Q1 2025 revenue.
- The optimism surrounding Reddit's finance department is evident as their quarterly revenue, at over $392 million, outstripped the Visible Alpha consensus estimate.
- The technology sector should take note of Reddit's impressive 60% increase in revenue, a testament to their effective advertising strategies.
- In stark contrast to Reddit's strong business performance, Snapchat announced cost-cutting plans and refrained from disclosing their Q2 outlook.
- Reddit's ambitious Q2 2025 revenue range, with the $420 million midpoint, indicates an expectation to continue outperforming the consensus target.
- The increase in Reddit's DAUq (Daily Active Unique Users) by 31% in Q1 2025 highlights the growing consumer interest in the platform beyond its renowned forums and "upvotes."
