Q4 2024 Reddit Inc Earnings Call Transcript

Feb 12, 2025 / 10:00 PM GMT

Transcript 10-K8-K

Key Points

Positve

Reddit Inc (RDDT) achieved a 71% year-over-year revenue growth in Q4, marking a strong financial performance.
The company reported GAAP profitability for the second consecutive quarter, with total revenue growing 3.5 times faster than total costs.
International growth was robust, with a 46% increase in daily active users, highlighting Reddit's expanding global presence.
Reddit's advertising business grew 60% year-over-year, driven by diverse industry participation and strong international ad revenue growth.
The introduction of AI-powered tools like Reddit Answers and machine translation in multiple languages is enhancing user engagement and accessibility.

Negative

Reddit Inc (RDDT) experienced volatility due to a Google Search algorithm change, affecting traffic from search, particularly for logged-out users.
Despite Q4 profitability, the company ended 2024 with a significant loss of $484 million, primarily due to a $595 million accounting charge related to stock-based compensation.
The company faces challenges in maintaining and expanding profitability amidst fluctuating search engine referrals and evolving privacy regulations.
There is a need for continued investment in infrastructure and hiring, which could impact cost management and profitability.
Reddit's international user base is still underdeveloped compared to peers, with significant room for growth in non-US markets.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

RDDT.N - Reddit Inc
Q4 2024 Reddit Inc Earnings Call
Feb 12, 2025 / 10:00PM GMT

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Presentation
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Unidentified_1 [1]
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Good afternoon. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to Reddit's 4th quarter and full year 2024 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. And if you would like to withdraw your question again press one.

Thank you. I would now like to turn the call over to Jessie Rose, head of investor relations. Jessie, you may begin your conference.

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