RDDT Earnings Prediction
The chart below shows how RDDT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, RDDT sees a -0.81% change in stock price 10 days leading up to the earnings, and a +12.84% change 10 days following the report. On the earnings day itself, the stock moves by +0.47%. This data can give you a slight idea of what to expect for the next quarter's release.
RDDT Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
427.71M
71.25%
22.78%
Gross Margin
92.55%
4.67%
2.76%
Operating Margin
12.36%
921.49%
527.41%
Net Margin
16.61%
123.85%
93.82%
EPS
0.40
233.33%
150.00%
No Data Available
RDDT Earnings Analysis
Reddit Inc Corporation (RDDT.N) Earnings Conference Call
Positive
Q4 Revenue Surge: Total revenue in Q4 grew 71% year over year to $428 million, with advertising revenue increasing 60% year over year, driven by broad-based strength across objectives, channels, verticals, and geographies.
Strong Profitability and Cost Management: GAAP net income reached $71 million in Q4, with adjusted EBITDA hitting $154 million, demonstrating strong profitability and effective cost management.
Margin Improvement and Profitability: Gross margins improved to 92.6% in Q4, with an adjusted EBITDA margin of 36%, reflecting efficient operations and scaling profitability.
International Ad Revenue Surge: International ad revenue grew 77% year over year, marking the fastest growth in over two years, indicating successful expansion efforts in global markets.
User Engagement Growth: Daily Active User Queries (DAUQs) reached 101.7 million, representing a 39% year-over-year growth, with logged-in users increasing by 27%, showcasing strong user engagement and growth.
Negative
Annual Net Loss Analysis: Total net loss for the full year 2024 was $484 million, primarily driven by a $595 million accounting charge related to stock-based compensation, indicating significant financial strain despite quarterly profitability.
Cost Management Challenges: In Q4, total adjusted costs grew by 21%, which could signal potential challenges in cost management as the company scales its operations and invests in growth initiatives.
Google Search Traffic Volatility: Despite a strong Q4, the company experienced volatility in traffic from Google Search due to an algorithm change, which could impact future user engagement and revenue generation.
Stock-Based Compensation Impact: Stock-based compensation in Q4 was $97 million, representing about 23% of revenue, suggesting a high cost structure that may affect profitability if not managed effectively.
Stock-Based Compensation Impact: The company anticipates slightly elevated sequential stock-based compensation costs in Q1 2025 due to higher employer taxes, which could further pressure margins in the upcoming quarter.
RDDT FAQs
How does RDDT typically perform around its earnings report dates?
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RDDT Earning Call Sentiment
Earnings call transcript: Reddit Q4 2024 beats EPS forecast, stock dips
RDDT.N
-4.95%Positive
The earnings call presented strong financial performance with revenue and EBITDA growth, improved gross margins, and positive cash flow. The Q&A section highlighted confidence in profitability and ad innovations, though some uncertainty remains regarding Google's algorithm changes. The guidance is optimistic, with a focus on growth and profitability, which should positively impact stock price. Despite some non-specific responses, the overall sentiment is positive, suggesting a likely stock price increase of 2% to 8%.
