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Reddit's Sales Soar Past Expectations, Buyback Announced
6 Feb
Summary
- Reddit projects first-quarter revenue between $595 million and $605 million.
- Fourth-quarter revenue increased 70% year-over-year, reaching $726 million.
- The company announced a $1 billion share buyback program, its first since IPO.
Reddit Inc. has projected first-quarter sales to reach between $595 million and $605 million, exceeding analysts' expectations. This positive outlook comes after a period of significant growth, with fourth-quarter revenue soaring to $726 million, marking a 70% increase from the previous year. The social media platform's advertising business has been a primary driver of this success, contributing nearly all of its over $2 billion in sales last year.
In line with its strong financial performance, Reddit has authorized a $1 billion share buyback program, its first since its initial public offering in early 2024. This move underscores the company's confidence in its financial model and its ability to invest in growth and potential mergers and acquisitions. Executives are actively seeking opportunities to enhance advertising technology and incorporate new machine learning capabilities.
