Reddit Inc (NYSE:RDDT) reported fourth-quarter financial results after the market close on Wednesday. Here’s a look at the key metrics from the quarter.
Q4 Earnings: Reddit reported fourth-quarter revenue of $427.71 million. It beat the consensus estimate of $405.26 million, according to Benzinga Pro. The company also reported:
See Also: Stocks Trim Losses After Hot Inflation, Bonds Remain Pressured, Tesla Rebounds: What’s Driving Markets Wednesday?
The daily actives number appears to be weighing on shares. In a letter to shareholders, Reddit said it experienced “some volatility with Google Search triggered by a periodic algorithm change.” The company noted that traffic from search has regained momentum in the first quarter.
“What happened wasn't unusual—referrals from search fluctuate from time to time, and they primarily affect logged-out users. Our teams have navigated numerous algorithm updates and did an excellent job adapting to these latest changes effectively,” the company said.
Reddit generated operating cash flow of $90 million and free cash flow of $89.2 million in the quarter. The company ended the quarter with cash and cash equivalents of $1.84 billion.
Outlook: Reddit expects first-quarter revenue to be in the range of $360 million to $370 million versus estimates of $358.08 million. The company sees first-quarter adjusted EBITDA of $80 million to $90 million.
Reddit executives will further discuss the quarter on a conference call with investors and analysts at 5 p.m. ET.
According to Reddit CEO Steve Huffman, “what’s most exciting is still ahead.”
Price Action: Reddit shares were down 15.2% after hours, trading at $183.99 at the time of publication Wednesday, according to Benzinga Pro.
Read Next:
Photo: Shutterstock.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.