Source: Reuters (via feed)
Reddit projected first-quarter revenue above Wall Street estimates on Thursday. The social media company attributed the growth to artificial intelligence-driven improvements in its advertising platform. These enhancements helped attract more marketers to its site. As a result, Reddit’s shares rose 10% in after-hours trading.
In addition, Reddit announced its first share repurchase program, authorizing up to $1 billion. The company cited strong profitability and cash flow as reasons for returning capital to shareholders. Despite this, Reddit said it would continue investing in product development.
The company’s AI-powered features appear to be increasing advertiser interest. This shift is notable given the competitive landscape for online advertising dollars. Meanwhile, Reddit’s financial strategy underscores confidence in its current operations and future prospects.
Overall, Reddit’s forecast and new share buyback program signal solid financial performance in the current quarter. Market reaction reflected optimism about its ad sales momentum and shareholder return plans.
Reddit’s revenue forecast and share repurchase highlight growing advertiser demand and strong cash flow, key factors for investor confidence.
