Reddit, Inc. Achieves Strong Growth in 2024

Reddit, Inc. Class A ( (RDDT) ) has released its Q4 earnings. Here is a breakdown of the information Reddit, Inc. Class A presented to its investors.

Reddit, Inc., a prominent player in the online community and information exchange sector, has established itself as a key platform for user-generated content, hosting over 100,000 active communities and approximately 101 million daily active users.

Reddit reported a robust financial performance for the fourth quarter and full year of 2024, showcasing significant growth in user engagement and revenue. The company’s daily active uniques (DAUq) surged by 39% year-over-year, reaching 101.7 million, while fourth-quarter revenue saw a remarkable 71% increase to $427.7 million.

Key financial metrics highlighted Reddit’s strong performance, with the fourth-quarter gross margin improving to 92.6% and net income rising to $71.0 million, representing 16.6% of the revenue. The company’s adjusted EBITDA for the fourth quarter was $154.3 million, and operating cash flow reached $90.0 million, both showing substantial improvements from the previous year. For the full year 2024, Reddit’s revenue increased by 62% to $1.3 billion, though the company reported a net loss of $484.3 million, reflecting significant investment in growth and development.

Looking ahead, Reddit’s management remains optimistic about future prospects, focusing on enhancing user experience and expanding their reach. The company projects revenue in the range of $360 million to $370 million for the first quarter of 2025, with adjusted EBITDA expected between $80 million and $90 million, indicating continued strategic growth initiatives.