Online community and discussion platform Reddit (NYSE: RDDT) will be reporting results this Thursday after the bell. Here’s what to expect.
Reddit beat analysts’ revenue expectations last quarter, reporting revenues of $725.6 million, up 69.7% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ revenue estimates. It reported 52.5 million daily active users, up 9.4% year on year.
Is Reddit a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Reddit’s revenue to grow 55.4% year on year, slowing from the 61.5% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Reddit has a history of exceeding Wall Street’s expectations.
Looking at Reddit’s peers in the consumer internet segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Booking delivered year-on-year revenue growth of 16.2%, meeting analysts’ expectations, and Coursera reported revenues up 9.1%, in line with consensus estimates. Coursera traded down 11.6% following the results.
Read our full analysis of Booking’s results here and Coursera’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 16.2% on average over the last month. Reddit is up 19.5% during the same time and is heading into earnings with an average analyst price target of $223.34 (compared to the current share price of $148.40).
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