$RDDT jumps 9% after Q1 beat; revenue rises 69% to $663M
Original: Reddit reports 69% jump in revenue, topping analyst estimates View original →
$663 million in quarterly revenue and a more than 9% after-hours stock move pushed Reddit $RDDT back into the earnings spotlight on April 30. The company reported diluted EPS of $1.01 against an LSEG consensus of 58 cents, while revenue rose 69% from a year earlier and cleared the $611 million sell-side estimate. Net income increased to $204 million from $26 million a year earlier.
The company’s primary filing was the Q1 2026 shareholder letter filed with the SEC. That document shows global revenue of $663.4 million, U.S. revenue of $525.6 million and international revenue of $137.8 million. It also shows global DAUq of 126.8 million, up 17% year over year, and global ARPU of $5.23, up 44%. Logged-out user growth remained especially important, with logged-out DAUq rising 26% to 74.8 million.
Guidance was another reason the market rewarded the quarter. CNBC reported that Reddit expects second-quarter sales in a range of $715 million to $725 million, above the $712 million analyst consensus, while adjusted earnings guidance of $285 million to $295 million also topped estimates. That matters because the market had already seen strong prints from Meta and Alphabet a day earlier, and Reddit’s numbers suggest the digital-ad recovery is broadening rather than staying confined to the largest platforms.
Management also continued to frame Reddit as both an ad platform and a data asset. In the shareholder letter, CEO Steve Huffman argued that authentic human conversation is becoming scarcer as AI usage expands. That framing matters for investors because it supports two revenue lines at once: advertising against growing user traffic and licensing or product monetization tied to Reddit’s corpus of discussions.
The next step is whether Reddit can turn a strong Q1 into a more durable full-year re-rating. Investors will watch Q2 execution against the new guide, international monetization, search product adoption, and whether logged-out traffic can keep scaling without compressing engagement quality.
Not investment advice. Verify all figures with primary sources before acting.
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