On Tuesday after the U.S. market closed, the online platform Reddit released its quarterly figures for the second quarter of 2024. The company surprised with a smaller loss and significantly higher revenues than expected.
Reddit reported a loss of $0.06 per share in the second quarter. Experts had previously predicted a loss of $0.319 per share. Compared to the same quarter last year, when the loss was $0.7 per share, the company achieved a significant improvement.
Particularly positive was the revenue: It increased from 183 million USD in the previous year to 281.2 million USD, significantly surpassing analysts' expectations of 254 million USD. This represents a year-over-year growth of 53.7 percent.
Despite positive revenue growth, investors reacted cautiously. At times, Reddit's stock lost 7.39 percent in NYSE trading and fell to 50.34 US dollars.
CEO Steve Huffman commented on the results: "Our strong revenue growth indicates that our strategic initiatives and investments in the platform are bearing fruit. We are on the right track to achieve our long-term goals.
Huffman also emphasized that Reddit will continue to invest in new features and the improvement of the user experience to maintain growth momentum. "We see great potential in monetizing our communities and will continue to pursue innovative approaches to increase our user base and engagement.
