Reddit (Reddit (RDDT)) reported first-quarter results after Thursday's close, and they were a knockout. The social media platform posted revenue of $663.41 million, well above the consensus estimate of $610.88 million, and earnings of $1.01 per share crushed the 58 cents analysts were looking for.
Revenue jumped 69% compared to last year, driven by a 17% increase in daily active unique users to 126.8 million. The company also showed it's running a tight ship: operating cash flow hit $312 million, free cash flow was $311 million, and it ended the quarter with about $2.77 billion in cash and marketable securities.
CEO Steve Huffman summed it up: "Reddit is a one-of-one business powered by deeply engaged communities and authentic human conversation. That foundation is driving a rare combination of growth, profitability, and efficiency, and giving Reddit a unique advantage in the age of AI."
Looking ahead, Reddit expects second-quarter revenue between $715 million and $725 million, ahead of the $711.63 million consensus. Adjusted EBITDA is forecast at $285 million to $295 million. Executives will discuss the quarter further on an earnings call at 4:30 p.m. ET.
Investors liked what they saw. Reddit shares rose 2.56% in after-hours trading to $151 at the time of writing.
