Core Insights - Reddit reported a fourth-quarter revenue of $726 million, representing a 70% year-over-year increase, surpassing analyst expectations of approximately $660 million [4] - Earnings per share reached $1.24, exceeding the consensus estimate of $0.94 [4] - Despite strong earnings, Reddit's stock fell 7.4% to around $140 per share, reflecting broader market concerns and a sector selloff [5] Revenue and Growth Metrics - The company achieved strong ad revenue of $690 million, a 75% year-over-year increase [6] - Daily active unique users grew by 19% to 121.4 million [4] - Reddit announced a $1 billion share repurchase program [4] User Growth Concerns - U.S. daily active unique users increased by 9% to 52.5 million, but logged-in users grew only 5% to 23 million, marking a decline from previous quarters [7] - This slowdown in logged-in user growth is the sixth consecutive quarter of deceleration, raising concerns about market saturation in the U.S., which is Reddit's most profitable market [7][8] - Reddit plans to stop disclosing logged-in versus logged-out user metrics later in 2026 [8]
Maybe I Wasn’t So Wrong About Reddit After All