Social networking company reported $575m in losses, but strong revenue and an increase in users buoyed investor confidence
Reddit shares rose more than 15% in after-hours trading on Tuesday following its first quarterly earnings since going public in March. The company reported overall losses of $575m, citing expenses from its initial public offering for the decline. But strong revenue and user increases boosted confidence in the company after its long-awaited public offering.
Reddit reported a revenue of $243m during the first quarter of 2024 – an increase of 48% from the previous quarter. It also posted record user traffic, with daily active users increasing 37% to 82.7 million from the previous three months. The report comes after its initial public offering saw a positive response, with shares up 48% on the first day of trading.
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