Reddit $RDDT ( ▲ 0.35% ) just reminded Wall Street that memes can, in fact, make money. The social platform delivered a strong fourth quarter with revenue, earnings, and user growth all topping expectations, and then piled on with upbeat guidance for the current quarter. Shares moved higher after hours as investors cheered signs that Reddit’s business model is finally scaling.
This comes after a rough stretch for the stock, which had been dragged down alongside other AI-linked names this year.
Ad Dollars and Data Deals Are Doing the Heavy Lifting
Reddit posted earnings per share of $1.24, easily beating expectations and up sharply from a year ago. Revenue surged 70% year over year to $726 million, also well ahead of estimates.
Daily active uniques hit 121.4 million, up 19% from last year and slightly above Wall Street forecasts. That user growth matters because Reddit is increasingly monetizing its audience not just through ads, but also through data licensing deals tied to AI training.
Guidance Gives Bulls Something to Hold On To
For Q1, Reddit expects revenue between $595 million and $605 million, comfortably above analyst estimates. That guidance helped calm fears that recent market weakness and AI volatility might spill over into ad budgets or platform growth.
CEO Steve Huffman said the company is entering a new phase focused on sharper execution, global expansion, and product innovation built around real conversations. Translation: Reddit wants to turn its chaotic, deeply human forums into a more predictable, everyday utility for users and advertisers alike.
The big question now is whether Reddit can keep converting engagement into sustainable ad and data revenue. For one quarter at least, it looks like the upvotes are turning into actual dollars.