Reddit (RDDT) reported fourth-quarter earnings that topped analysts’ estimates, but its user growth fell short, sending shares lower in extended trading Wednesday.
The social media platform saw revenue grow 71% year-over-year to $427.7 million, topping the analyst consensus compiled by Visible Alpha. Net income came in at $71 million, up from $18.5 million a year ago and above expectations. However, Reddit’s 101.7 million daily active users in the period fell short of the 103.24 million analysts were looking for, despite growing 39%.
Looking ahead, Reddit said it expects first-quarter revenue of $360 million to $370 million, compared to $243 million a year earlier and above the analyst consensus at the midpoint.
Shares of Reddit plunged 15% to $183.85 in extended trading Wednesday following the release. The stock closed at a record high Friday, and was up nearly sevenfold from its initial public offering price of $34 in March 2024 through Wednesday’s close.
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