Reddit Posts 69% Q1 Revenue Growth, DAUs at 126.8M Lifts Shares 12%
Reddit's Q1 revenue surged 69% year-over-year to drive a 12% stock rally, with daily active users rising 17% to 126.8 million and average revenue per user jumping 44%. The company also issued a stronger-than-expected current-quarter sales forecast, prompting analysts to raise price targets up to $300.
1. Strong Q1 Financial Results
Reddit's first-quarter revenue rose 69% year-over-year as AI-driven advertising boosted sales and the company issued a current-quarter forecast above analysts’ expectations.
2. User Growth Metrics
Daily active users reached 126.8 million, a 17% increase from last year, while average revenue per user climbed 44%, driven by international growth and higher monetization rates.
3. Share Price Reaction
Shares jumped about 12% intraday, snapping a three-day losing streak and testing resistance near $167.50, supported by short covering amid 12.1% float interest.
4. Analyst Price Target Upside
Following the results, Evercore ISI lifted its price target to $300, contributing to a consensus 12-month target of $228.54, representing roughly 44% upside from current levels.