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Steve Huffman, co -founder and CEO of Reddit, speaks during the WSJ Tech Live conference organized by the Wall Street Journal at Montage Laguna Beach in Laguna Beach, California, on October 21, 2024.
Frederic J. Brown | AFP | Getty images
Reddit The shares fell more than 15% on Wednesday after the company reported weaker user numbers than expected in their fourth quarter.
This is how the company did compared to LSE estimates:
- Profit per action: 36 cents vs. 25 expected cents
- Revenue: $ 428 million vs. $ 405 million
The global daily active aigos, or Dauq, increased 39% compared to the year prior to an average of 101.7 million for the fourth quarter. Which followed the estreet street estimates of 103.1 million.
A change in the Google search algorithm caused some “volatility” with user growth in the fourth quarter, but traffic related to the company’s search has been recovered since then in the first quarter, said Reddit’s CEO, said Reddit CEO, Steve Huffman, in a letter to the shareholders.
“What happened was not unusual: search references fluctuate from time to time, and mainly affect download users,” Huffman wrote. “Our teams have sailed numerous algorithm updates and did an excellent job adapting to these last changes effectively.”
Reddit has benefited from Google search updates And internal improvements of the site that have helped him obtain a significant amount of new users and that return, to which the social company refers as users without price, during the last year. Reddit has said that he is working to convince users of the session that he creates accounts as registered users, who are more lucrative for his business.
Global initiated Adauq grew by 27% year after year to 46.1 million in the quarter, while Global Stristen Dauq increased 51% to 55.6 million, the company said.
Despite the foul in the user number, the company otherwise reported a solid quarter and provided an optimistic guide.
Reddit sales increased 71% in the quarter of $ 250 million a year earlier, the fastest growth rate for any quarter since 2022.
The company said that sales of the first quarter will be between $ 360 million and $ 370 million, before the average estimate of analysts of $ 358 million.
The almost quadrupled net income at $ 71 million or 36 cents per share, of $ 18.5 million, or a balance per share, a year earlier. Reddit reported adjusted profits of $ 154 million in the fourth quarter, exceeding the expectations of analysts of $ 128 million.
Reddit’s fourth quarter’s profits followed several other online advertising technology companies that recently reported their latest quarterly gains.
Last week, Amazon reported Fourth quarter gains, saying Its online advertising business registered $ 17.29 billion, 18% more than a year ago. In your earnings of the fourth quarter, Pinterest He said that sales In the period it increased 18% year after year to $ 1.15 billion.
Also last week, Alphabet He said that his advertising sales on Google grew by 11% from one year before $ 72.46 billion, while YouTube advertising increased 14% to $ 10.47 billion in the fourth quarter. BreakMeanwhile, he reported Fourth Quarter Revenue Growth of 14% year after year to $ 1.56 billion.
At the end of January, Goal saying Its income for the fourth quarter reached $ 48.39 billion, 21% more than the previous year. Microsoft also reported That their advertising news sales increased 21% year after year in their latest quarterly gains. Microsoft does not reveal the specific quarterly sales figures of that unit.
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