Reddit Stock Rises After First Post-IPO Earnings Report
Reddit stock is higher after the company's impressive Q1 results and strong Q2 outlook. Here's what you need to know.


Reddit (RDDT) stock jumped 5% in early trading Wednesday after the social media platform beat top- and bottom-line expectations in its first earnings report as a public company. Shares have since pared a portion of these earlier gains, but are still comfortably higher.
In the three months ended March 31, Reddit's revenue surged 48.4% year-over-year to $243 million. The top-line results were driven by a 37.1% increase in daily active uniques (DAUq) to 82.7 million and an 8.1% increase in average revenue per user to $2.94. Reddit defines DAUqs as users the company "can identify with a unique identifier who has visited a page on the Reddit website or opened a Reddit application at least once during a 24-hour period."
On the bottom line, Reddit posted a net loss of $575.1 million, up from a net loss of $60.9 million in the year-ago period, primarily due to charges related to its initial public offering (IPO) in March. Still, the company reported adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of positive $10.0 million vs negative $50.2 million in the year-ago period.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"It was a strong start to the year and a milestone quarter for Reddit and our communities as we debuted as a public company," Reddit co-founder and CEO Steve Huffman said in a statement. "We see this as the beginning of a new chapter as we work towards building the next generation of Reddit."
The top-line results easily beat analysts' expectations for revenue of $212.8 million, according to CNBC.
Reddit also provided an upbeat outlook for its second quarter. The company is calling for revenue in the range of $240 million to $250 million and adjusted EBITDA in the range of $0 to $15 million.
Wall Street, meanwhile, is anticipating Q2 revenue of $224 million, according to Yahoo Finance.
Is Reddit stock a buy, sell or hold?
Analysts were bullish on Reddit stock going into the earnings release. According to S&P Global Market Intelligence, analysts' average target price for RDDT is $55.07, representing implied upside of about 6% to current levels. Additionally, the consensus recommendation is Buy. However, these estimates could change following Reddit's strong first-quarter performance.
Financial services firm Needham has already reiterated its Buy rating and increased its price target to $63 from $55 in reaction to the company's quarterly results. The new $63 price target represents implied upside of roughly 22% to current levels.
What's more, Needham analyst Laura Martin added the communication services stock to her Conviction List, saying the company's impressive revenue and free cash flow growth growth, as well as its strong margin expansion are "indicative of RDDT's robust business model."
Additionally, Reddit is one of the best sources to train generative AI (artificial intelligence) large language models (LLMs), which should give the company pricing power, Martin says. "[I]ts content library contains 1 billion posts and 16 billion comments collected over the past 18 years, and its platform hosts 1.2 million new posts and 7.5 million new comments every single day," the analyst notes.
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Claiming the Standard Deduction? Here Are Five Tax Breaks for Retirement in 2025
Tax Tips If you’re retired and filing taxes, these five tax credits and deductions could provide thousands in relief (if you qualify).
-
QUIZ: Test Your Retirement IQ
Quiz Are you smarter than…everyone else? Test your retirement smarts with this quiz.
-
Where There's a Will, There's a Way Your Assets Will Be Distributed as You Wish
Your will is the backbone of a strong, adaptable estate plan that ensures what you leave behind goes to your selected beneficiaries. Without a will, state laws determine who gets your assets.
-
I'm a Financial Adviser: This Is What You're Really Losing if You Cut Back on Your 401(k) Contributions
Missing out on the benefits of the employer match and compounding growth could force you to work longer and lower your standard of living in retirement. Here are some alternative options.
-
S&P 500 Hits New Highs as Rally Resumes: Stock Market Today
Tech stocks were the biggest gainers on Wall Street today, with Nvidia and Dell making notable moves.
-
Should You Buy Gold as It Tops $4,000? Here's What the Experts Say
Rate cuts, a weak dollar and macro uncertainty have helped create a "perfect storm" for gold this year. Should investors add exposure or is it too late to buy?
-
Preferred Bank Stocks: The Investment Retirees (and Others) May Be Missing Out On
Most large banks issue preferred stocks that pay out fixed dividends, often with higher yields than bonds. Should you make room for them in your portfolio?
-
Don't Let Your Equity Compensation Trip You Up: A Financial Expert's Guide
Stock options, RSUs and other executive perks can come with some serious strings attached. To avoid a nasty tax surprise, you need a plan.
-
Rally Fades on Mixed AI Revolution News: Stock Market Today
All three main U.S. equity indexes opened higher but closed lower as a seven-session winning streak for the S&P 500 came to an end.
-
The Spendthrift Trap: Here's One Way to Protect Your Legacy From an Irresponsible Heir
A spendthrift clause in an estate plan can protect an inheritance from a financially irresponsible child's debts and poor decisions.