After the US stock market on Tuesday, the “US Tieba” Reddit ushered in its first financial report since listing. The Q1 results surpassed Wall Street expectations and achieved a strong start to the year.

After the financial report was announced, Reddit's stock price surged more than 14% to $56.66 after the market. The previous closing was up 2.34%, and the company's total market capitalization was US$8.017 billion. Since its launch,

Q1 revenue surged 48%

According to financial reports, Reddit's first quarterRevenue of $243 millionThis is a 48% increase from $163.7 million in the same period last year, far higher than Wall Street's estimate of $214 million.

However, due to IPO fees, the company's first quarterNet loss was $575.1 millionA loss of 60.9 million US dollars was recorded in the same period last year. The loss per share was $8.19, better than market expectations of $8.71.

The adjusted profit before interest, tax, depreciation and amortization (EBITDA) was $10 million, compared to a loss of $50.2 million for the same period last year.

Judging from financial reports, although Reddit is still in a state of loss, its core business —The growth rate of advertising revenueandUser growth rateThe performance is still quite outstanding.

Among them, the company'sAd revenue increased 39% year over yearto $223 million. First quarterThe number of daily active users is 82.7 million, up 37% year over year; global average revenue per user increased 8% year over year to $2.94.

Additionally, operating cash flow was $32.1 million, an increase of $28 million over the previous year; free cash flow was $29.2 million; and capital expenditure was $2.9 million.

Regarding this performance, Reddit co-founder and CEO Steve Huffman (Steve Huffman) said,It's a good start to the year and a landmark quarter for Reddit.

“We think this is the beginning of a new chapter, and we're committed to building the next generation of Reddit.”

User economy and artificial intelligence

In March of this year, Reddit was listed on the NYSE.

As a social media platform, Reddit was founded in 2005,It's essentially a “Tieba forum”.

According to previous public information, Reddit has 267.5 million active users. These users are distributed in more than 100,000 sub-sections, covering almost all fields from entertainment to technology. Among them, the WallStreetBets trading forum is the most famous.

However, although Reddit has always been popular with users, it has been difficult to make a profit. Last year, the company reported a net loss of US$91 million and revenue of US$804 million.

So for many years, the company has been trying to achieveDiversification of the main business of digital advertising.

And with the “surge” of this wave of artificial intelligence, Reddit is also trying to train big AI models that are “hungry” for data by authorizing content generated by its users.

Earlier, Reddit revealed that it has reached an agreement with Google to train AI through data; this agreement is worth about 60 million US dollars a year.

In a letter to shareholders, Hoffman said it is expected to continueInvesting in artificial intelligence technologyto improve Reddit's content recommendations.

“I think our next biggest business model is what we're talking aboutUser economy, so it's a user making money from other users on Reddit.”

The company also plans to increase sales through international expansion and translation of Reddit posts into other languages.

Looking ahead, Reddit expects second-quarter revenue of between $240 million and $255 million compared to $223.8 million. The second-quarter adjusted profit before interest, tax, depreciation and amortization is expected to be between break-even and $15 million, compared to a loss of $18.2 million.

Mandeep Singh, senior analyst at Bloomberg Intelligence, said that Reddit's 20% to 30% increase in average daily users appears to be sustainable because the community and content on its platform are growing steadily, which increases its relevance for training large language models.