Reddit's (NYSE:RDDT) stock tumbled 13% in after-hours trading, wiping nearly $6 billion from its valuation following a mixed fourth-quarter earnings report that fell short of investor expectations.
Revenue surged 70% year-over-year to $427.7 million, beating analyst forecasts of $405.5 million.
However, earnings per share came in at $0.36, missing the expected $0.48. Daily active users hit 101.7 million, up 40% from 2023 but below the 103.8 million expected.
CEO Steve Huffman blamed traffic “volatility” on Google’s algorithm changes but said traffic had since recovered.
Despite the disappointing earnings, Reddit’s first-quarter guidance exceeded expectations, with projected revenue between $360 million and $370 million.