Steve Huffman, co -founder and general director of Reddit, says during the WSJ Tech Live conference, organized by the Wall Street Journal at Montage Laguna Beach in Laguna Beach, California, October 21, 2024.
Frederic J. Brown AFP Getty images
Reddit The shares fell on Wednesday by more than 15% after the company reported weaker than expected numbers of users in their earnings in the fourth quarter.
Here's how the company compared to LSEG estimates:
- Profit per share: Expected 36 cents vs. 25 cents
- Income: $ 428 million compared to USD 405 million expected
Global Daily Active Uniques, or DAUQ, increased by 39% compared to the year earlier to 101.7 million in the fourth quarter. This raised Wall Street estimates to 103.1 million.
Changing the Google search algorithm caused some “variability” as the user's growth in the fourth quarter, but the traffic related to the search of the company was recovered in the first quarter, said Reddit CEO Steve Huffman in a letter to shareholders.
“What happened was not unusual-to time to the search from the search change and, above all, affect logged users,” Huffman said. “Our teams moved in numerous algorithm updates and did a great job, effectively adapting to these latest changes.”
Reddit used Google search updates and internal improvements to the site, which helped him get a significant number of new and returning users, which the social company calls as logged users in the last one and a half years. Reddit said he was working on convincing logged in users to create accounts as logged in users that are more lucrative for his activities.
Global Logged-in Dauq increased by 27% year-on-year to 46.1 million in this quarter, while the Global Loged Out Dauq increased by 51% to 55.6 million, the company said.
Despite the lack of user number, the company otherwise reported a strong quarter and provided optimistic tips.
Reddit sales increased in this quarter by 71% from USD 250 million a year earlier, the fastest growth rate in any quarter from 2022.
The company said that sales in the first quarter will be from 360 million to USD 370 million, before the average respect for analysts at the level of USD 358 million.
Net income almost four times up to $ 71 million or 36 cents per share, from $ 18.5 million, i.e. forecasts according to SHAR, a year earlier. Reddit reported corrected earnings of $ 154 million in the fourth quarter, which is the expectations of analysts of $ 128 million.
Reddit earnings in the fourth quarter have taken place several other technology companies that recently reported their last quarterly earnings.
Last week, Amazon Reported earnings in the fourth quarter, saying His online advertising company recorded $ 17.29 billion, which is an increase of 18% than a year ago. In your earnings in the fourth quarter, Pinterest He said it was turnover During this period, it increased by 18% year -on -year to $ 1.15 billion.
Also last week, Alphabet He said that the sale of Google ads increased by 11% from a year before $ 72.46 billion, while revenues from YouTube advertising increased by 14% to $ 10.47 billion in Fourth quarter. SnapMeanwhile, it was reported Revenues from the fourth quarter Growth by 14% year -on -year to $ 1.56 billion.
At the end of January Finish he said His revenues in the fourth quarter amounted to USD 48.39 billion, which is an increase of 21% compared to the previous year. Microsoft Also Reported that the sale of information advertising has increased by 21% year -on -year in the last quarterly earnings. Microsoft does not disclose specific quarterly sales data of this unit.
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