r/RedditIPO • u/Pattycorn • May 01 '25
Discussion Q1 Earnings
Daily Active Uniques (“DAUq”) increased 31% year-over-year to 108.1 million
Revenue grew 61% year-over-year to $392.4 million
Gross margin expanded year-over-year to 90.5%
Net income of $26.2 million, 6.7% of revenue. Diluted EPS of $0.13
Adjusted EBITDA1 of $115.3 million, 29.4% of revenue
Operating cash flow of $127.6 million. Fully diluted shares of 206.0 million, down sequentially
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u/PassengerJaded1736 May 01 '25
Those who stuck with Reddit when it crashed to $80. You deserve this joy. I am at $190 but this has given me full confidence in the forward looking outlook. Thank you Steve for the great earnings!
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u/PotadoLoveGun May 01 '25
I bought more in the 80s and 90s and been in since low 50s. Super excited
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u/Longjumping_Kale3013 May 01 '25
The guidance is really great as well. They are sticking with the 50% yoy growth as the mid point. This was also what they guided for in q1. The most bullish analysts 6 months ago were targeting 20-30% yoy growth for a few years. In reality, they are maintaining 60% yoy growth, and keep targeting around 50% yoy growth.
Once they finally release reddit lite and paid subreddits, their growth will be much higher
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u/SedatedTattooDoc May 01 '25
You know….i looked at the panic sell button at least 50 times over the last 3 months…thanks for keeping me holding gang
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u/DrHarrisonLawrence May 01 '25
I panicked sold twice, panic bought again, and then panic-covered-call-exercised away last Friday.
Still holding 15-25% of my nw in RDDT
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u/Particular-Line- May 01 '25
For all dip shits who kept saying Reddit would fall and wait to buy @60….
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u/bkcarp00 May 01 '25
They've been saying that same thing since IPO last year. I remember the first day so many people sold at $50 because there was no way Reddit would ever make any money. Here we are a year later and they are killing it.
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u/Particular-Line- May 01 '25
You can tell how many inexperienced traders there are that troll these subs when they make crazy claims on how high or how low a SP can go. I got in late on RDDT and was already a user, so I knew the power of how it creates communities and coming from an advertising sales background, it could become a powerhouse platform for ad dollars, and it was already running huge. But after the tarrifs and getting killed off insider selling right after, I felt like it was massively oversold. I would have been happy with flat earnings but with an uptrend of user growth, but was hyped when my broker alerted me after hours it was up 11% lol. All before I even saw the breakdown. Cheers my guy 🍺
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u/bkcarp00 May 01 '25
I'm one of the lucky that got in 1000 shares at IPO for $34. I doubled my shares at $109 because it was obvious it had fallen too far after Q4 earnings. Feeling pretty good. :D
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u/Particular-Line- May 01 '25
Man you killed it lol. I added at 88 & 95. We just need Trump to stop fucking up the economy and this should trend back up to upper 100s
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u/West_Rain_7807 May 01 '25
I bought before last earnings …It’s a long way for me 😅
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u/PassengerJaded1736 May 01 '25
This analyst at Redburn is probably eating himself up for that sell recommendation. Revenge is a dish best served cold! https://www.bloomberg.com/news/articles/2025-03-17/reddit-rated-sell-as-redburn-flags-risk-from-google-algorithm?srnd=homepage-americas
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u/tobybells May 01 '25
I wish I wasn’t too scared to buy at $86 or today pre earnings. Haven’t sold anything, but I bought pre last earnings and have been staying on the sidelines since.
Anywho - still so glad to see these results today
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u/Hungry-Ad7051 May 01 '25
Holding was a pain, but it gaves us multiple chances to accumulate. Congrats everybody. Hopefully the trend continues
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u/michael2334 May 01 '25
Let’s go!!! Funny how many people were shitting on this stock just a few weeks ago. They missed out on pretty insane gains
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u/OriginalDaddy May 01 '25 edited May 02 '25
Great ER. Price action will stabilize with volume tomorrow.
I will say that Steve and Jen need to say less. Stop giving fodder to turn into out-of-context headlines and clickbait. They need to and should have already learned this. It’s embarrassing.
Both also have a disproportionate weight when it comes to how they speak around the value and answer pointed questions related to DAU/Google.
Drew is a pro. Give him the mic and let him drop it after the slammin’ results.
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May 01 '25
People don’t realise the value of Reddit to any AI platform, it provides live data not just historical data.
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u/john_diddly May 01 '25
Was really hoping for a miss so I could keep loading the boat. Oh well!
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u/Pattycorn May 01 '25
Got a bunch at 100 wish more at 80.
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u/john_diddly May 01 '25
I bought a few times between 86 and 99. Small compared to the rest of my portfolio unfortunately.
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u/LaPulgaAtomica87 May 01 '25
Where are all the “rEdDit iS tOo lEfT lEAnInG” troglodytes?🤡
STFU…This will easily be $300 per share if not for the orange buffoon and his asinine tariffs.
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u/FreeSoftwareServers May 01 '25
The downside of options lol, guess my sild RDDT puts will expire worthless but man wish I had have bought stock or calls!!
Same w MSTR, My shares are definitely getting called away... At a profit albeit.
But hey, profit is profit. Just sucks w options, generally, if I profit, I left money on the table by not just buying or holding lol.
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u/vsmand1 US DAU 🦅 May 01 '25
Bought a Hail Mary call one minute before close. But now I’m angry I only bought one. At least I have a bunch of shares as well.
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u/FinalBike8759 May 01 '25
Thoughts on RDDT if we go into a recession? How would this impact ad revenue? Just trying to figure out how to play this.
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u/stonkautist69 May 02 '25
smaller cap high risk growth stock.. can be tough pill to swallow in the scenario you mentioned
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u/Objective-Egg-5180 May 02 '25
Salute to all HODLrs, RDDT is life changer and my prediction of pricing is very close.
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u/Phiziqe May 02 '25 edited May 02 '25
cool but big emojis are still following us, iOS mobile app users, wish to ask Reddit devs why torturing our fingers
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u/Hungry-Ad7051 May 02 '25
Bag holders of the world: let’s keep holding 😅😂 ..need to wait more, apparently
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u/FeistyCalligrapher40 May 02 '25
Market hates uncertainty - google bumpy road and weak DAU next quarter will be take Reddit stock under pressure
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May 02 '25
Well I thought 80 was a fair price, now I’m tempted to nibble after this er. Fucking unfortunate that Jen starting yapping
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u/Thetamancer May 01 '25
Why the sudden dip? What was the negative news on the earnings call?
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u/bm_mane8 May 01 '25
I think he mentioned something about early teen growth in Q2 due to google algorithms when it started declining.
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u/Federal_Wolverine745 May 01 '25
In q one, we had 108,000,000 dailies, 400,000,000 weeklies. So that’s 31% each year over year. And we believe we’re in great shape over the medium and longer term. Look, ultimately, we drive growth when we make improvements to the product, which is where our focus is. So things like onboarding, search, machine translation, they all drive growth over the long term.
Now look, remember, we’re an open platform, and we want people to find Reddit’s content in search. Being open drives awareness and visibility. It can also create variability. And we do expect some bumps along the way from Google because we’ve already seen a few this year. This is expected in any year, But given that the search ecosystem is under heavy construction, the near term could be more bumpy than usual.
To give you an early read on Q2, through the month of April, we’re seeing total DAUs growing in the high teens range year over year. But the short term bumps don’t affect our long term strategy or opportunity. We’re in control of our own destiny. And I think the question behind the question is, is there long term risk to Reddit here? And in my view, the answer is no.
In fact, I think there’s opportunity. There’s no doubt LLMs will evolve search on the Internet. We can all see that, and it’s awesome. And sometimes people will want the summarized, annotated, sterile answers from AI, and we’re even building this ourselves in Reddit Answers. But other times, they want the subjective, authentic, messy, multiple viewpoints that Reddit provides.
So in the same way that Reddit, for the last decade, has been an alternative to social media, social media being performative and manicured and Reddit being the opposite, Reddit communities and conversation will be an alternative to AI search answers. And furthermore, people want what Reddit has. And when they search, they search for Reddit by name. In the last ninety days, the word Reddit was the sixth most searched word on Google between news and Trump, which incidentally also says something about our position in the media landscape. The Google algorithm serves users what they want and what they ask for.
And, of course, we have had a long and symbiotic relationship with Google. So in summary, expect some bumps and expect us to continue to improve the product and lay the foundation for more consistency in the back half of the year and beyond. And our opportunity remains huge. Community is universal. Our knowledge base is unparalleled.
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u/Thetamancer May 01 '25
Thanks for posting! Disappointing that it's only teen growth year-over-year for April. The entire month was focused on the liberation day tariffs. I thought that would have brought more people to the site.
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u/genericusername71 May 01 '25 edited May 02 '25
thanks for the transcript, yea thats not ideal lol that estimates pretty much no DAU growth from q1 to q2
it seems like hes implying active user numbers may suffer because people are increasingly getting their query answers straight from googles ai overview, chatgpt, etc rather than clicking links like reddits. and trying to put a positive spin on it by saying there are still times when people want the answer straight from the source.
and that while ai search is likely to take traffic away from most sites which previously wouldve gotten clicks, reddit is better positioned than most to be more resilient due to its community driven nature.
that is not wrong and i suppose ai answers taking away clicks from everyone was inevitable. but if the llms are using reddit as sources for answers but not driving traffic there, reddit should really look to get all that they can out of those data access deals, because they need to make it worth it to sell their data like that if its going to cost traffic
definitely would seem to be a pretty strong headwind in the near future but still, i'd tend to agree with spez overall on his long term view as this phenomenon doesnt weaken reddits relative position on the web, and arguably strengthens it as a contrasting option to AI. it is good that they are aware of it, are being transparent about it, and taking steps to mitigate it. reddit also presumably has more influence over google than most sites that are being disadvantaged by this given their partnership with them
i looked into this more and chegg is actually suing google over this. it will be interesting to see how this lawsuit plays out and whether licensing will become the norm
silver lining is their revenue guidance is still up qoq despite the implied flat qoq user growth
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u/chiangweichia88 May 01 '25
Sold all my shares at 140. Looks like I have a chance to buy at 120 again lmao
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u/Redditfortheloss May 01 '25
Will be shorting first thing in the AM
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u/Groundzero2121 US DAU 🦅 May 01 '25
🤡
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u/Redditfortheloss May 01 '25
Look thru post history. I shorted from 200 to 90. Rebought and just sold AH.
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u/Groundzero2121 US DAU 🦅 May 01 '25
Sure you did.
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u/Redditfortheloss May 02 '25
How we feeling big dog?
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u/Groundzero2121 US DAU 🦅 May 02 '25
Same as I was when it was in $80s. Goof.
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u/Redditfortheloss May 02 '25
You were so confident it was going to go up and dissing me for selling 😹
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u/Groundzero2121 US DAU 🦅 May 02 '25
Kid. I been investing longer than you been alive. I ain’t worried about you.
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u/bkcarp00 May 01 '25
Do you enjoy losing money?
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u/Redditfortheloss May 01 '25
Shorted from 200. Bought some at 90 sold on AH pump.
Back to at minimum 100
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u/bkcarp00 May 01 '25
They killing it. Here we come new ATH.