Reddit has announced its financial results for the first quarter of 2024 today in a post on its investors blog, and they are showing very strongly for the social network with this being the first round of results following the company's decision to go public on the New York Stock Exchange back in March 2024.
CEO and Co-Founder Steve Huffman said that "It was a strong start to the year and a milestone quarter for Reddit and our communities as a public company." and that "We see this as the beginning of a new chapter as we work towards building the next generation of Reddit."
Key measures of the site's performance, such as Daily Active Uniques (abbreviated to DAUq), show significant increases in user traffic with a 37% bump to 82.7 million year-on-year. Its revenue also increased 48% to $243 million, nearly doubling the growth rate from the prior quarter. Finally, it reports an operating cash flow of $32.1 million and a positive free cash flow of £29.2 million.
However, despite all of this, the site's net loss increased from $60.9 to $575.1 million, which the site attributes to the IPO charges from going public as well as Stock-based compensation expense and related taxes and the % change is marked as not meaningful (NM) in the highlights table included in the post.
Reddit also estimates that it will have consistent revenue going into the second quarter of 2024 of a range between $240 million and $255 million, and its Earnings before interest, taxes, depreciation and amortization (EBITDA) in the range of $0 to $15 million which is a measure that attempts to represent the cash profit generated by its operations.
Finally, Reddit took the time to announce an update to its Board of Directors in this post. Sarah Farrell, co-founder and Managing Partner of Waygrove Partnership, joins the Board of Directors, having been a board observer since 2021 and increasing the Board to eight directors total.
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