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- Reddit beat expectations for its first financial quarter as a publicly traded company.
- Strong revenue growth and record user traffic sent the stock price up 16% in after-hours trading.
- R&D expenses were up four times compared to last year.
Reddit just delivered a big first quarter as a newly public company.
The social media platform beat analyst expectations Tuesday when it reported revenue of $243 million, up 48% from the same period last year. The company also boasted a record 82.7 million daily active users, up 37% from the year before.
"It was a strong start to the year and a milestone quarter for Reddit and our communities as we debuted as a public company," co-founder and CEO Steve Huffman said in a statement. "We see this as the beginning of a new chapter as we work towards building the next generation of Reddit."
While still not yet profitable, the net loss of $8.19 a share was below the $8.75 a share loss that investors were bracing for.
Meanwhile, research and development costs soared by 300% year-over-year as the company beefs up its AI-related revenue and advertising strategy.
This story will be updated following the earnings call at 5 p.m ET.
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