Reddit (RDDT) Q4 2024 earnings summary

Executive summary

• Achieved over $1.3 billion in full-year revenue, with Q4 revenue of $428 million, up 71% year-over-year.

• Ended 2024 with 101.7 million DAUq, a 39% year-over-year increase, led by 46% international growth.

• Q4 net income was $71 million (16.6% margin); full-year net loss of $484.3 million, impacted by a one-time $595 million stock-based compensation charge.

• Rolled out machine translation in eight languages and launched Reddit Answers, an AI-powered search tool, to enhance global accessibility and user engagement.

• Q4 Adjusted EBITDA reached $154.3 million (36.1% margin); full-year Adjusted EBITDA $298 million.

Financial highlights

• Q4 ad revenue grew 60% year-over-year to $395 million; other revenue at $33.2 million.

• Gross margin in Q4 was 92.6%; full-year gross margin 90.5%.

• Q4 EPS was $0.40 basic and $0.36 diluted; full-year EPS $(3.33) basic and diluted.

• Q4 free cash flow was $89.2 million; full-year free cash flow $215.8 million.

• Cash, cash equivalents, and marketable securities totaled $1.84 billion at year-end.

Outlook and guidance

• Q1 2025 revenue expected between $360 million and $370 million, representing 48%-52% year-over-year growth.

• Q1 2025 adjusted EBITDA projected at $80 million-$90 million, up 700%-800% year-over-year.

• Focus remains on scaling profitably, maintaining high margins, and generating meaningful cash flow.