close
close

Voice News

CA News 2024

searchengine

Reddit answers questions from Redditors in the first quarterly results since the IPO

Image for article titled Reddit engages Redditors in first earnings call since IPO

Photo: Idrees Abbas/SOPA Images/LightRocket (Getty Images)

Reddit reports earnings tomorrow after the bell. In an unusual way, the company will answer questions from its own users.

Redditors can ask questions in the subreddit r/RDDT, and the company will respond during the question and answer part of the first quarter earnings call with investors. Reddit has gone out of its way to make its users part of its public debut, reserving 8% of its IPO shares to its most dedicated Redditors without a lock-up period in March.

Raymond James analyst Josh Beck reiterated his strong buy rating on Reddit stock ahead of its earnings report Tuesday, given “encouraging” user trends and demand for its data to train generative AI models. Bank of America analysts gave the stock a neutral rating, but still expect a 30% increase in Reddit’s first-quarter revenue compared to the previous year, especially given its data licensing deal with Google.

Shares of Reddit were near $49 at market close on Monday Reddit’s IPO price of $34 but well below the stock’s all-time high of around $75 in the week after its public debut. Reddit hasn’t made a profit since its founding in 2005. The social media site posted a loss of $91 million in 2023, according to the social media site the company’s initial public offering filing with the Securities and Exchange Commission.

But the losses are getting smaller. The company’s overall losses fell 43% between 2022 and 2023, when Reddit started charging fees to third-party developers who used its application programming interface (API). The move sparked outrage among RedditorsBut their protests had little effect.

Reddit’s revenue rose about 21% last year to $804 million.

More Reddit news

Reddit CEO Steve Huffman is paid more than the heads of Meta, Pinterest and Snap combined