Reddit’s Upcoming Earnings Report: A Deep Dive int…
From Financial Modeling Prep: 2025-04-30 10:00:00
In preparation for its Q1 2025 earnings release, Reddit (NYSE:RDDT) is expected to report an EPS of $0.03 and revenue of $369.68 million, surpassing the Zacks Consensus Estimate. The company foresees a 48% to 52% year-over-year revenue increase, indicating strong growth in the digital advertising sector.
With its earnings announcement approaching on May 1, Reddit is poised to showcase its performance in the competitive social media landscape. Analysts project revenues between $360 million and $370 million, reflecting a substantial growth rate. The company’s ability to outpace expectations highlights its strength in digital advertising and consumer engagement.
Reddit has consistently exceeded the Zacks Consensus Estimate in recent quarters, with an average surprise of 194.08%. Despite its current lack of profitability, the company is expected to achieve an EPS of 3 cents, demonstrating positive momentum. This growth trajectory underscores Reddit’s resilience in the market.
Financially, Reddit presents a mixed outlook with a price-to-sales ratio of 15.24 and an enterprise value to sales ratio of 14.83. While the company maintains a low debt-to-equity ratio and a strong current ratio, it faces challenges from heightened competition and a premium valuation. Investors should carefully evaluate these factors before the earnings report.
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