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Reddit Inc. Class A (RDDT-6.28%) has submitted its annual report on Form 10-K filing for the fiscal year ended December 31, 2024.
The filing details Reddit's financial performance, highlighting a revenue increase to $1.3 billion, up 62% from the previous year. This growth is attributed mainly to an increase in advertising revenue driven by a rise in impressions delivered.
Cost of revenue increased by 11% to $123.6 million, primarily due to increased hosting usage to support user growth, partially offset by lower hosting prices.
Research and development expenses rose significantly by 113% to $935.2 million, driven by higher stock-based compensation expenses and other employee-related costs.
Sales and marketing expenses increased by 52% to $350.6 million, influenced by higher stock-based compensation expenses and an increase in employee-related costs.
General and administrative expenses saw a 174% increase to $451.4 million, primarily due to higher stock-based compensation expenses.
Reddit reported a net loss of $484.3 million, compared to a net loss of $90.8 million in the previous year. Adjusted EBITDA was $298.0 million, a significant improvement from a negative $69.3 million in the prior year.
The company ended the year with $1.8 billion in cash, cash equivalents, and marketable securities, and it maintains a $750 million revolving credit facility.
Reddit's user metrics showed growth, with daily active uniques (DAUq) reaching 101.7 million, a 39% increase year-over-year. Average revenue per unique (ARPU) increased by 23% to $4.21.
The filing also discusses Reddit's strategies for user growth and engagement, including expanding internationally and improving discovery and user experience.
Reddit identifies potential risks, including competition, reliance on advertising revenue, and evolving laws and regulations that could impact its operations.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Reddit Inc. Class A annual 10-K report dated February 13, 2025. To report an error, please email earnings@qz.com.