Reddit shares rose 6% and then receded to flat in after-hours trading on Thursday after the company reported fourth-quarter earnings that beat on the top and bottom lines and gave strong guidance for the start of 2026.
Here's how the company did compared with LSEG estimates:
Earnings per share: $1.24 vs. 94 cents expected
$1.24 vs. 94 cents expected Revenue: $726 million vs. $665 million expected
The company said it expects first quarter sales to come in the range of $595 million to $605 million, which is higher than Wall Street expectations of $577 million. Adjusted earnings in the first quarter are projected to come in between $210 million and $220 million, ahead of StreetAccount's estimates of $203 million.
Reddit also announced a $1 billion share repurchase program.
The company's fourth-quarter revenue rose 70% year-over-year, while net income was $252 million, up nearly 255% compared to a year ago.
Reddit's sales in the U.S. market came in at $583 million in the fourth quarter, topping analyst estimates of $529 million.
The company's global daily active uniques, or DAUq, grew 19% year-over-year to 121.4 million in the fourth quarter, ahead of the 120 million that Wall Street was expecting.
Fourth-quarter U.S. DAUq grew 9% year-over-year to 52.5 million, slightly ahead of the 52.3 million that analysts were projecting.
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