Q: Thoughts on earnings?
Specifically I want to ask about these three line items from full year 2024 earnings:
"Total revenue increased 62% year-over-year to $1.3 billion, Ad revenue increased 50% year-over-year to $1.2 billion, and Other revenue reached $114.7 million
Gross margin was 90.5%, an improvement of 430 basis points from the prior year
Free Cash Flow was $215.8 million and capital expenditures were $6.2 million, less than 1% of revenue"
With gross margin being high and Cap-ex being incredibly low; is there something I am missing or is Reddit likely to be very profitable now that the baggage on the books from the IPO is behind them?
How is cap-ex so low? Is that mostly a result of their website having volunteer moderators?
Thanks.
Specifically I want to ask about these three line items from full year 2024 earnings:
"Total revenue increased 62% year-over-year to $1.3 billion, Ad revenue increased 50% year-over-year to $1.2 billion, and Other revenue reached $114.7 million
Gross margin was 90.5%, an improvement of 430 basis points from the prior year
Free Cash Flow was $215.8 million and capital expenditures were $6.2 million, less than 1% of revenue"
With gross margin being high and Cap-ex being incredibly low; is there something I am missing or is Reddit likely to be very profitable now that the baggage on the books from the IPO is behind them?
How is cap-ex so low? Is that mostly a result of their website having volunteer moderators?
Thanks.
