Core Insights - Reddit's stock experienced volatility following a pre-market jump of nearly 8% as the market digested the earnings report details [1] Financial Performance - Reddit reported an adjusted EPS of $1.24, significantly exceeding the analyst consensus of $0.94 [2] - Revenue reached $726 million, representing a 70% year-over-year increase, primarily driven by a 75% rise in advertising revenue [2] - Daily Active Uniques (DAUq) increased by 19% to 121.4 million, with international growth at 28%, outpacing U.S. growth [2] Market Reactions - Despite strong Q4 numbers, concerns arose from slowing growth in U.S. logged-in users, which increased by only 5%, indicating potential market saturation [3] - CEO Steve Huffman announced that Reddit will cease reporting the split between "logged-in" and "logged-out" users, which some analysts interpret as an attempt to obscure deceleration in high-value user growth [3] - Prior to the earnings report, Reddit's stock had declined approximately 31% over the last nine days, leading some investors to take profits following the post-earnings surge [3]
Reddit Stock Reverses While The Market Rips Higher: Here's Why