Reddit Inc.’s stock jumped on Thursday following the release of its fourth‑quarter earnings, which showed robust growth across both revenue and profitability metrics, and the unveiling of a new $1 billion share‑repurchase programme.
Quarterly Performance Beats Expectations
The social‑media platform reported fourth‑quarter revenue of $2.03 billion, a 70 % increase year‑over‑year, propelling its annual revenue past the $2 billion threshold for the first time—a 69 % rise from the prior year. Adjusted earnings came in at $1.24 per share, comfortably surpassing analysts’ consensus forecasts.
Profitability Highlights
Net income for the quarter turned positive, reflecting the company’s continued focus on monetising its user base and improving operating efficiencies. The earnings beat reinforced confidence in Reddit’s business model and its ability to scale advertising revenue.
Share‑Buyback Initiative
Alongside the earnings release, Reddit announced its inaugural share‑repurchase programme, authorising up to $1 billion of stock buybacks. The move is intended to return capital to shareholders, enhance earnings per share and signal management’s confidence in the company’s long‑term outlook.
Guidance and Outlook
Management provided optimistic guidance for the upcoming fiscal year, projecting continued double‑digit revenue growth and further expansion of its advertising ecosystem. The combination of strong quarterly results, a sizeable buyback, and upbeat guidance has positioned Reddit as a standout performer in the digital media sector.
Market Reaction
Investors responded positively, with Reddit’s shares climbing sharply in after‑hours trading. Analysts upgraded their ratings for the stock, citing the company’s accelerating growth trajectory and the shareholder‑friendly capital allocation strategy.
