In its first year as a public company, Reddit delivered promising earnings metrics, including a net income of $71 million for Q4, which marks an increase from the previous year's $18.5 million. However, Wall Street's disappointment stemmed from the company reporting 101.7 million daily active unique users, below the anticipated 103.3 million. This considerably impacted Reddit's share price, which fell by 15% after-hours. CEO Steve Huffman attributed the drop in user figures to a recent Google search algorithm update, claiming search traffic has since recovered and insisting that revenue growth remains unaffected.
Although we experienced some fluctuations in search traffic due to Google's recent algorithm change, our revenue remains unaffected, reflecting strong overall growth and adaptation.
Despite the challenges, we saw a 39% increase in global active unique users this year, although we fell slightly short of Wall Street's projections.
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