Reddit: first publication welcomed by the stock market

(CercleFinance.com) - Reddit reported better-than-expected performance last night in its first quarterly results since its IPO in March, figures that were greeted by a gain of over 2% on Wall Street today.


Last night, the social media company reported first-quarter sales up 48% year-on-year to $243 million, boosted by a 39% increase in advertising revenues ($222.7 million).

By way of comparison, the analyst consensus was for quarterly sales of around $212 million.

In other good news, the American group posted an operating profit (Ebitda) of $10 million, compared with a loss of over $50 million a year earlier.

The number of unique active users rose by 37% to 82.7 million, while the number of weekly active users increased by 40% to 306.2 million.

For the second quarter, Reddit is targeting sales of between $240 and $255 million, representing growth of between 31% and 39%, and Ebitda of between zero and $15 million, above expectations.

Although they are raising their price target from $50 to $57, BofA analysts believe that this solid performance will be difficult to repeat, as it will be boosted by new agreements concerning the use of its data, leading them to reiterate their 'neutral' opinion on the stock, which they believe incorporates a lot of good news.

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