Stock price surged by 20%! "American Reddit" outperformed expectations in the first quarter, with a revenue growth rate of 48% beating its peers

On Wednesday, May 8th, "American forum" Reddit released its quarterly financial report for the first time since its listing in March, with company performance exceeding market expectations, driving its stock price to soar more than 13% in after-hours trading.The financial report showed that Reddit continued to incur losses but performed better than expected, with revenue growth exceeding market expectations, advertising revenue growth outperforming peers, and user growth surpassing expectations:In the first quarter, Reddit's revenue increased by 48% year-on-year to $2.43 billion, exceeding the market's expected $2.13 billion; net loss was $575 million, including $596 million in stock-based compensation expenses and related taxes, mainly due to IPO costs; loss per share was $8.19, better than the market's expected $8.71.The core business contributing the most to revenue—advertising revenue—increased by 39% year-on-year to $2.23 billion, outpacing its main competitors. In comparison, Meta's advertising revenue grew by 27% in the first quarter, Amazon by 24%, and Google's parent company Alphabet by 13%.Reddit stated that the daily active user count in the first quarter was 82.7 million, exceeding the market's expected 76.6 million. Global average revenue per user increased by 8%, rising from $2.72 per user last year to $2.94 per user.Looking ahead, Reddit expects revenue for the second quarter to be between $2.4 billion and $2.55 billion, higher than analysts' expected $2.24 billion. Data from LSEG shows that the midpoint of the guidance range indicates a revenue growth rate of approximately 32% compared to $1.83 billion in the same period last year.Since its founding in 2005 by Alexis Ohanian and current CEO Steve Huffman, Reddit has evolved into a platform with millions of online forums. Huffman stated in a declaration on Tuesday, "We see this as the beginning of a new chapter, and we are committed to building the next generation of Reddit."