Steve Huffman, co -founder and director of Reddit, speaks during the WSJ Tech Live Conference, which is October 21, 2024.
Frederic J. Brown | AFP | Getty Images
Reddit The shares fell more than 15% on Wednesday after the company reported the user numbers weaker than expected in its earnings in the fourth quarter.
Here’s how the company is compared to LSEG estimates:
- Earnings per share: 36 cents compared to 25 cents expected
- Income: $ 428 million Compared to $ 405 million expected
Global Daily Active Unique, or Dauq, rose by 39% compared to the year an average of 101.7 million for the fourth quarter. This was lagging behind the Wall Street estimate of 103.1 million.
The change of Google Search Algorithm caused some “volatility” with users’ growth in the fourth quarter, but the traffic connected to the search has since recovered in the first quarter, said Reddit CEO Steve Huffman in a letter to shareholders.
“What happened was not an unusual-pore from a search from time to time to fluctuate, and they primarily affect reported users,” Huffman wrote. “Our teams started in numerous algorithm updates and adapting to these latest changes.”
Reddit used to benefit from Google search updates And the internal improvement of the sites that have helped him get a significant amount of new and return users, which a social company calls reported users in the last year and a half. Reddit said that he was working on the belief of reported users to create accounts as reported users who are more lucrative for his business.
Global reported Dauq increased 27% compared to 46.1 million in the quarter, while Global reported Dauq rose to 51% to 55.6 million, the company announced.
Despite the disappearance of the user issue, the company otherwise reported on a strong quarter and provided optimistic guidelines.
Reddit’s sale jumped 71% in a quarter with $ 250 million a year earlier, which is the fastest growth rate for any quarter of 2022.
The company said sales in the first quarter will be between $ 360 to $ 370 million, on the eve of an average estimate of analysts of $ 358 million.
The net income was almost doubled to $ 71 million or $ 36 per share, $ 18.5 million, or Breakeven based on a year earlier. Reddit reported in the fourth quarter about a custom earned of $ 154 million, which outweighed the expectations of analysts in the amount of $ 128 million.
Reddie’s earnings in the fourth quarter followed several other internet technological companies that recently reported on their last three -month earnings.
Last week, Amazon reported The fourth quarter’s earnings, saying His online advertising company recorded $ 17.29 billion, which is more than 18% compared to the year before. In his earnings in the fourth quarter, Pinterest he said sales During this period, it increased 18% compared to the year to $ 1.15 billion.
Also last week, Alphabet He said his Google Advertising Sales increased by 11% compared to the year before $ 72.46 billion, while YouTube’s advertisements jumped to 14% to $ 10.47 billion in USD Fourth quarter. SnapMeanwhile, he reported Fourth quarter revenue A 14% growth compared to $ 1.56 billion.
At the end of January, Target said His revenue in the fourth quarter was $ 48.39 billion, which is 21% compared to the previous year. Microsoft also reported That news sales increased 21% compared to the year in the last quarterly earnings. Microsoft does not detect specific quarterly sales information.
Watch:: I would buy Amazon over the meta, says Hightower’s Stephanie Link
