(Bloomberg) -- Reddit Inc. shares jumped more than 10% in extended trading after improvements to the social media platform’s advertising system helped push...
-- Reddit Inc. shares jumped more than 10% in extended trading after improvements to the social media platform ’s advertising system helped push quarterly sales higher than expected in its first results as a public company.Revenue increased 48% to $243 million in the period ended March 31, the social media company said Tuesday in a statement. Analysts, on average, estimated $211.9 million, according to data compiled by Bloomberg .
The shares hit a high of $60.40 in extended trading after closing at $49.40 in New York. While the stock got an initial boost in its first day of trading March 21, raising the market value of the company to about $8 billion, it has since dropped 2%.The text-based social media company said it now has more than 82.7 million global daily users — a jump of 37% from a year earlier — who post multiple times each day to the site’s forums.
Moving forward, Reddit plans to diversify its revenue streams by licensing its data to AI companies and boosting commerce on the platform. In its S-1 filing, the company said it entered into data licensing agreements worth $203 million, with terms ranging from two to three years. Reddit reported $20 million in data licensing revenue in the first quarter.
“We believe this will not only drive growth in the near term, but also over time will allow users from all over the world to connect regardless of the languages they speak,” Huffman said in a conference call after the results were released.Ferrari N.V.: Periodic Report on the Buyback Program
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