Online community and discussion platform Reddit (NYSE: RDDT) will be announcing earnings results tomorrow afternoon. Here’s what to expect.
Reddit beat analysts’ revenue expectations by 4.6% last quarter, reporting revenues of $427.7 million, up 71.3% year on year. It was a satisfactory quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations. It reported 48 million daily active users, up 31.9% year on year.
Is Reddit a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Reddit’s revenue to grow 52.1% year on year to $369.5 million, improving from the 48.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.51 per share.
Analysts covering the company have generally 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, beating revenue estimates every single time since going public by 10.1% on average.
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. Snap delivered year-on-year revenue growth of 14.1%, beating analysts’ expectations by 1.3%, and Booking reported revenues up 7.9%, topping estimates by 3.6%.
Read our full analysis of Snap’s results here and Booking’s results here.
Investors in the consumer internet segment have had steady hands going into earnings, with share prices up 1.7% on average over the last month. Reddit is up 7% during the same time and is heading into earnings with an average analyst price target of $145.59 (compared to the current share price of $117.70).
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