Reddit Beats Q4 Estimates and Greenlights $1 Billion Buyback as Shares Slip
Reddit reported Q4 revenue of $795 million, beating the $775 million estimate, and delivered an adjusted EBITDA of $150 million versus $145 million expected. The company also authorized a $1 billion share buyback, yet shares declined roughly 3% on the day.
1. Earnings Beat and Revenue Growth
Reddit’s Q4 revenue climbed to $795 million, surpassing consensus estimates of $775 million, driven by higher advertising spend and growth in premium membership subscriptions.
2. Adjusted EBITDA Performance
The platform achieved an adjusted EBITDA of $150 million, topping analyst forecasts of $145 million, reflecting improved operating leverage and cost controls.
3. $1 Billion Buyback Authorization
The board approved a $1 billion share repurchase program to return capital to investors, signaling confidence in cash flow generation and undervaluation concerns.
4. Market Reaction and Next Steps
Despite the stronger-than-expected results and buyback plan, shares fell about 3% as investors weighed muted user growth and awaited guidance for the new fiscal year.