01—Abstract
Summary
Summary of the 8-K filed February 12, 2025. Cited figures are marked; the original filing is the authoritative source.
Reddit, Inc. (NYSE: RDDT) reported fourth quarter 2024 revenue of $427.7 milliona, up 71% year-over-year, with advertising revenue of $394.5 million (up 60%) and Other revenue of $33.2 million.
Net income was $71.0 millionb (16.6% net margin) versus $18.5 million a year earlier, diluted EPS was $0.36, and Adjusted EBITDA was $154.3 million, or 36.1% of revenue. Operating cash flow was $90.0 million and Free Cash Flow was $89.2 million. Gross margin reached 92.6%, up 420 basis points year-over-year.
For the full year 2024, revenue was $1.3 billionc, up 62%, with a net loss of $484.3 million compared with a net loss of $90.8 million in 2023. The filing attributes the full-year loss primarily to IPO-related expenses. Full-year Adjusted EBITDA was $298.0 million (22.9% margin), operating cash flow was $222.1 million, and cash, cash equivalents and marketable securities totaled $1.84 billion at December 31, 2024.
Daily active uniques (DAUq) reached 101.7 million in the fourth quarter, up 39%, with international DAUq growing 46%. For the first quarter of 2025, Reddit estimates revenue of $360 million to $370 milliond and Adjusted EBITDA of $80 million to $90 million. The shareholder letter notes that Google Search traffic volatility in late Q4 2024 has recovered so far in Q1 2025, and highlights the launch of Reddit Answers, an AI-powered search product in beta in the U.S.
02—Key points
Key Highlights
- Q4 2024 revenue of $427.7 million, up 71% year-over-year; advertising revenue of $394.5 million, up 60%
- Q4 2024 net income of $71.0 million (16.6% net margin) versus $18.5 million in Q4 2023; diluted EPS of $0.36
- Q4 2024 Adjusted EBITDA of $154.3 million (36.1% margin) versus $23.2 million a year earlier
- Gross margin of 92.6% in Q4 2024, an improvement of 420 basis points from the prior year
- Full-year 2024 net loss of $484.3 million, compared with $90.8 million in 2023, driven primarily by IPO-related expenses
- Q1 2025 guidance: revenue of $360 million to $370 million and Adjusted EBITDA of $80 million to $90 million
- DAUq of 101.7 million in Q4 2024, up 39% year-over-year, with international DAUq up 46%
03—Questions
Frequently Asked Questions
How did Reddit's revenue perform in the fourth quarter and full year of 2024?
Fourth quarter revenue was $427.7 million, up 71% year-over-year, including $394.5 million of advertising revenue and $33.2 million of Other revenue. Full-year 2024 revenue was $1.3 billion, up 62% from $804.0 million in 2023. U.S. revenue grew 70% in the quarter and International revenue grew 76%.
Is Reddit profitable?
Reddit reported GAAP net income of $71.0 million in Q4 2024, its second consecutive GAAP profitable quarter according to the shareholder letter, with diluted EPS of $0.36. For the full year, it reported a net loss of $484.3 million, which the letter says was driven primarily by IPO-related expenses. Full-year stock-based compensation expense was $801.6 million, per the cash flow statement.
What guidance did Reddit provide for the first quarter of 2025?
Reddit estimates Q1 2025 revenue of $360 million to $370 million and Adjusted EBITDA of $80 million to $90 million. The company states these are based on current estimates and are not guarantees of future performance, and it did not provide a reconciliation of its non-GAAP guidance to GAAP equivalents.
How is Reddit's user base growing?
Average DAUq in Q4 2024 was 101.7 million, up 39% year-over-year, with U.S. DAUq at 48.0 million (up 32%) and International DAUq at 53.7 million (up 46%). Average WAUq was 379.4 million, up 42%. Logged-in DAUq grew 27% and logged-out DAUq grew 51%.
What was Reddit's cash position at year-end 2024?
At December 31, 2024, Reddit held $562.1 million in cash and cash equivalents and $1.28 billion in marketable securities, totaling $1.84 billion. Operating cash flow was $222.1 million for the full year, and Free Cash Flow was $215.8 million.
04—Continue