Investing.com -- Reddit soared in afterhours trading Tuesday after the social media company reported better-than-expected revenue and delivered upbeat revenue guidance for the current quarter, driven by strong user growth.
Reddit Inc (NYSE:RDDT), which made its stock market debut in March, rose more than 13% in afterhours trading Tuesday.
In Q1, Reddit reported a loss of $8.19 a share, wider than the $1.05 loss a share a year earlier, while revenue was up 48% to $243 million. That compared with analysts estimates for a loss of $6.32, if comparable, on revenue of $214M.
The losses were driven by expenses related to the company's initial public offering.
The beat on the top line was driven by a surge in user growth as daily active uniques increased 37% to 82.7 million.
The acceleration in users has helped attract more advertising dollars, with ad-revenue rising 39%.
"It was a strong start to the year and a milestone quarter for Reddit and our communities as we debuted as a public company,” said Steve Huffman, Co-Founder and CEO of Reddit.
Looking ahead, Reddit guided revenue in a range of $240M to $255M, compared with Wall Street estimates for $223M.