01—Abstract
Summary
Summary of the 10-K filed February 13, 2025. Cited figures are marked; the original filing is the authoritative source.
Reddit, Inc. (RDDT) reported full-year 2024 revenue of $1.30 billiona, up 62% from $804.0 million in 2023, with advertising revenue of $1,185.5 million and other revenue of $114.7 million.
The company swung to an operating loss of $560.6 millionb and a net loss of $484.3 million, compared with a net loss of $90.8 million in 2023, driven largely by stock-based compensation of $801.6 million, including a cumulative catch-up recognized upon the March 2024 IPO. Adjusted EBITDA was $298.0 million versus $(69.3) million in 2023, and free cash flow was $215.8 million versus $(84.8) million. User growth was strong in the three months ended December 31, 2024: average daily active uniques (DAUq) reached 101.7 million, up 39% year over year, with 53.7 million international DAUq, and ARPU rose 23% to $4.21.
The filing notes that logged-out users made up 55%c of global DAUq, that such users monetize at lower rates, and that DAUq growth may slow as the base grows. Management also highlights growth drivers including search engine traffic changes, machine translation, and product enhancements, while acknowledging that the company is in the early stages of monetizing content licensing and its user economy. The filing highlights concentration and structural risks.
Approximately 91%d of 2024 revenue came from third-party advertising, and the top ten customers accounted for about 25% of revenue. Content licensing revenue is substantially derived from two partners.
Class B shares carry ten votes each, and Advance Magazine Publishers Inc. holds approximately 23% of outstanding Class A and Class B shares, with Steven Huffman entitled to vote shares representing approximately 74% of voting power under voting agreements. The company held $1.8 billion in cash, cash equivalents, and marketable securities at year-end and had a $750.0 million revolving credit facility, with $745.1 million available.
02—Key points
Key Highlights
- Revenue of $1.30 billion for 2024, up 62% year over year from $804.0 million; advertising revenue was $1,185.5 million and other revenue was $114.7 million.
- Net loss narrowed to $(484.3) million from $(90.8) million in 2023 as operating expenses rose to $1.74 billion, largely from $801.6 million of stock-based compensation after the IPO.
- Adjusted EBITDA improved to $298.0 million from $(69.3) million, and net cash from operating activities was $222.1 million versus $(75.1) million in 2023.
- DAUq averaged 101.7 million in Q4 2024, up 39% year over year; ARPU was $4.21, up 23%, with United States ARPU at $7.04.
- Logged-out users comprised 55% of global DAUq in Q4 2024, and the filing notes these users generally monetize at lower rates than logged-in users.
- Approximately 91% of 2024 revenue came from third-party advertising, and the top ten customers accounted for approximately 25% of revenue.
- Dual-class structure gives Class B shares ten votes each; Advance Magazine Publishers Inc. held about 23% of Class A and Class B shares, and Steven Huffman was entitled to vote approximately 74% of voting power under voting agreements.
03—One dollar
Follow one dollar
For each $1.00 of revenue in FY2024, Reddit lost $0.37.
- Revenue$1.30B100.0%
- Cost of revenue−$123.6M9.5%
- Gross profit$1.18B90.5%
- Operating costs−$1.74B133.6%
- Operating income−$560.6M43.1%
- Interest, other & tax$76.6M5.9%
- Net income−$484.0M37.2%
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 13, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $1.30B$804.03M | +61.7% |
| Cost of Revenue | $123.59M$111.01M | +11.3% |
| Gross Profit | $1.18B$693.02M | +69.8% |
| R&D Expenses | $935.15M$438.35M | +113.3% |
| Operating Expenses | $1.86B$944.19M | +97.1% |
| Operating Income | -$560.57M-$140.16M | −299.9% |
| Net Income | -$484.00M-$90.82M | −432.9% |
| EPS (Basic) | $-3.33$-1.54 | −116.2% |
| EPS (Diluted) | $-3.33$-1.54 | −116.2% |
| Shares Outstanding (Basic) | 145.47M59.14M | +146.0% |
| Shares Outstanding (Diluted) | 145.47M59.14M | +146.0% |
05—Questions
Frequently Asked Questions
How much did Reddit's revenue grow in 2024, and what drove it?
Revenue was $1.30 billion for 2024, up $496.2 million or 62% from 2023. The filing attributes the growth primarily to higher advertising revenue driven mainly by increased impressions delivered, with other revenues also rising due to content licensing agreements executed in 2024.
Is Reddit profitable?
No. Reddit reported a net loss of $(484.3) million for 2024, compared with $(90.8) million in 2023, and an operating loss of $(560.6) million. The filing says most of the increase in operating expenses reflects stock-based compensation, including a cumulative catch-up recognized upon the IPO. Adjusted EBITDA, a non-GAAP measure, was positive at $298.0 million.
How is user growth trending and what are the risks?
Average DAUq reached 101.7 million in Q4 2024, up 39% year over year, and WAUq was 379.4 million. The filing cautions that DAUq has declined in the past after usage peaks, that growth may not be sustainable, and that the DAUq growth rate is expected to slow as the base increases. It also notes that logged-out users, who make up 55% of global DAUq, monetize at lower rates.
How concentrated is Reddit's revenue and who controls the company?
Approximately 91% of 2024 revenue came from third-party advertising, and the top ten customers accounted for about 25% of revenue. Class B common stock carries ten votes per share, and Advance Magazine Publishers Inc. held about 23% of Class A and Class B shares as of December 31, 2024. Steven Huffman was entitled to vote shares representing approximately 74% of the voting power under voting agreements, and the company is eligible to be a controlled company under NYSE rules.
What liquidity does Reddit have?
As of December 31, 2024, Reddit had $1.8 billion in cash, cash equivalents, and marketable securities. Its $750.0 million revolving credit facility had an aggregate available balance of $745.1 million, and management stated these resources are sufficient to meet working capital and capital expenditure needs for at least the next 12 months.
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