Reddit’s shares soared 14% in late trading on Tuesday after it released its first quarter report since going public in March. The stock, traded under the ticker “RDDT,” climbed to over $58.
Despite posting a loss per share of $8.19, the company surpassed revenue forecasts, hitting $243 million compared to $212.8 million expected by the London Stock Exchange Group.
Its ad revenue surged 39% from the previous year to $222.7 million.
However, Reddit reported a hefty net loss of $575.1 million, mainly due to stock-based compensation expenses related to its IPO.
Looking ahead, Reddit anticipates second-quarter revenue between $240 million to $255 million, surpassing analyst projections.