Reddit rips higher after crushing Q1 earnings estimates and offering upbeat guidance
Reddit’s blowout quarter had Wall Street smashing the upvote button.
Reddit shares soared more than 18% in after-hours trading after the social media company blew past earnings expectations and offered an upbeat outlook for the current quarter.
Earnings per share came in at $0.13, a huge beat versus the $0.02 analysts were expecting. Reddit’s revenue jumped 61% to $392 million, topping Wall Street’s estimates as well as its own guidance of $360 million to $370 million.
Reddit has been riding a wave of user growth, boosted by changes to Google Search and its own internal site tweaks. Global logged-in daily active users jumped 23% to 48.7 million, while logged-out DAUs surged 38% to 59.4 million.
In regard to recent global trade tensions, the company said it was “well-positioned” to meet the moment. “We’ve grown through challenging times before — people need connection and information just as much in uncertain times,” Reddit CEO Steve Huffman said in a letter to investors.
Looking ahead, Reddit expects Q2 revenue between $410 million and $430 million, well ahead of Wall Street’s $391 million estimate.
