Reddit just released its fourth-quarter earnings that beat on top and bottom lines

Core Insights - Reddit shares increased by 6% in after-hours trading following the release of fourth-quarter earnings that exceeded expectations on both revenue and earnings, along with strong guidance for early 2026 [1] Financial Performance - Fourth-quarter revenue rose 70% year-over-year to $726 million, surpassing analyst expectations of $665 million [8][2] - Net income for the fourth quarter was $252 million, reflecting a nearly 255% increase compared to the previous year [2] - Earnings per share were reported at $1.24, exceeding the expected 94 cents [8] Future Guidance - The company anticipates first-quarter sales to be between $595 million and $605 million, above Wall Street's expectation of $577 million [1] - Adjusted earnings for the first quarter are projected to be between $210 million and $220 million, ahead of estimates of $203 million [1] User Metrics - Global daily active uniques (DAUq) grew 19% year-over-year to 121.4 million, exceeding the expected 120 million [2] - U.S. DAUq increased by 9% year-over-year to 52.5 million, slightly above the projected 52.3 million [3] - Logged-in U.S. DAUq rose 5% year-over-year to 23 million, although this growth rate has slowed compared to the previous quarter [4] Strategic Initiatives - Reddit announced a $1 billion share repurchase program [2] - The CEO indicated plans to phase out the reporting of logged-in and logged-out user metrics later this year, as the distinction between these user types has become less relevant [6][7]