Reddit (RDDT) Q4 2024 earnings summary

Executive summary

• Achieved over $1 billion in annual revenue for the first time, with Q4 revenue of $428 million, up 71% year-over-year.

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

• GAAP profitable for the second consecutive quarter; Q4 net income was $71 million, and adjusted EBITDA reached $154 million.

• Significant progress in international expansion, AI-driven product innovation, and advertiser diversification.

• Full-year net loss of $484.3 million, despite Q4 profitability.

Financial highlights

• Q4 revenue grew 71% year-over-year to $428 million; full-year revenue up 62% to $1.3 billion.

• Q4 advertising revenue rose 60% year-over-year to $395 million, with international ad revenue up 77%.

• Gross margin reached 92.6% in Q4; adjusted EBITDA margin was 36%, and net income margin was 17%.

• Operating cash flow for Q4 was $90 million; free cash flow margin was 21%.

• 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 adjusted EBITDA projected at $80 million-$90 million, or 700%-800% growth.

• Focus remains on scaling profitably, driving innovation, and expanding internationally.