About Reddit, Inc.
Reddit, Inc. operates a digital community in the United States and internationally. The company's platform enables user to engage in conversations, explore passions, research new hobbies, exchange goods and services, create new communities and experiences, share laughs, and find belonging. It also organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. Reddit, Inc. was founded in 2005 and is headquartered in San Francisco, California.
Reddit, Inc. (RDDT) is a Communication Services company in the Internet Content & Information industry with a market capitalisation of $29B. The stock trades at 35.08x trailing earnings.
- Sector
- Communication Services
- Industry
- Internet Content & Information
- Market cap
- $29B
- P/E ratio
- 35.08
- Forward P/E
- 15.57
- EPS (TTM)
- $4.30
- Revenue (TTM)
- $2.8B
- Free cash flow
- $678.1M
- Profit margin
- 31.3%
- Beta
- 2.02
- Shares outstanding
- 146.1M
Financial health: Strong10/10
8 strengths, 0 concerns. No red flags against these benchmarks.
- Current ratio: 11.56 (Strong, benchmark > 1.5) — Short-term assets cover 11.56x short-term liabilities, against Graham's 1.5x floor. It has been broadly flat over the last 3 years.
- Return on equity: 30.7% (Strong, benchmark > 15%) — Earns 30.7% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 91.4% (Strong, benchmark > 40%) — Keeps 91.4% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 31.4% (Strong, benchmark > 10%) — Turns 31.4% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: $684.2M (Strong, benchmark positive) — Generated $684.2M of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: 61.1% (Strong, benchmark > 10%) — Revenue changed 61.1% year on year, comfortably past the > 10% mark.
- Earnings growth: 177.8% (Strong, benchmark > 10%) — Earnings changed 177.8% year on year, comfortably past the > 10% mark.
- PEG ratio: 0.75 (Strong, benchmark < 1) — At 0.75, the price looks cheap relative to expected growth — Lynch treated 1.0 as fair value.