After the company’s fourth-quarter earnings revealed lower-than-expected subscriber numbers, Reddit’s stock dropped more than 15% on Wednesday.
This is how the business performed in relation to the LSEG estimates:
36 cents in earnings per share as opposed to the anticipated 25 cents
Revenue: $428 million as opposed to $405 million anticipated DAUq, or global daily active uniques, increased 39% from the previous year to an average of 101.7 million during the fourth quarter. That fell short of 103.1 million Wall Street projections.
Reddit CEO Steve Huffman’s letter to shareholders, the company’s search-related traffic has now returned in the first quarter, despite some “volatility” with user growth in the fourth quarter due to a change in Google’s search algorithm.
“What transpired wasn’t out of the ordinary—search referrals vary periodically and mainly impact users who are logged out,” Huffman said.
“Our teams have successfully navigated multiple algorithm updates and have done a fantastic job of effectively adapting to these latest changes.”
Source (CNBC)
