Yazılar

Reddit Misses Daily Visitor Estimates Due to Google Algorithm Change, Shares Drop

/in /tarafından

Reddit (RDDT.N) fell short of market expectations for daily active unique visitors in the fourth quarter, impacted by a change in Google’s search algorithm that reduced its visibility in search results. This announcement sent Reddit’s shares tumbling 15% in after-hours trading on Wednesday.

The San Francisco-based company, which launched its IPO in March 2024, saw its stock surge nearly five-fold last year. However, volatility with Google search at the end of the fourth quarter affected traffic from “logged-out users”—those who browse without signing in, CEO Steve Huffman said in a letter to shareholders. Despite the setback, Huffman noted that traffic from Google search has since recovered in the first quarter of 2025.

Reddit’s daily active unique visitors grew by 39% to 101.7 million for the quarter ending December 31, but this fell short of analysts’ average estimate of 103.3 million, according to LSEG data. Growth has also slowed sequentially.

“Reddit shares are down due to missed expectations on daily active users, but it’s not a reason to lose faith in the company,” said Jeremy Goldman, senior director of briefings at eMarketer. He added that Reddit’s international expansion and AI advancements could help it become a digital advertising powerhouse.

Reddit has been leveraging AI deals with Alphabet’s Google and Microsoft-backed OpenAI, as well as conversation placement ads—where brands can advertise directly within subreddit discussions. These factors have helped Reddit forecast first-quarter revenue between $360 million and $370 million, surpassing analysts’ average estimate of $358.1 million.

The company reported fourth-quarter revenue of $427.7 million, beating the $405.3 million estimate, largely driven by holiday season ad spending. Profit per share came in at 36 cents, surpassing the 25-cent estimate. Reddit’s global average revenue per user increased by 23% to $4.21.

Additionally, Huffman mentioned ongoing discussions for data licensing deals with major industry players.

Google has yet to respond to inquiries about its algorithm changes.

ServiceTitan Targets $5.95 Billion Valuation in U.S. IPO

/in /tarafından

erviceTitan, a software startup specializing in tools for the home services industry, is aiming for a valuation of up to $5.95 billion in its U.S. initial public offering (IPO). The company announced on Tuesday that it has raised the price range for its shares to $65–$67, significantly increasing the potential proceeds from its IPO amid a resurgence in the capital markets for new listings.

While the company will sell 8.8 million shares as previously planned, the updated price range could generate as much as $589.6 million, up from the $502 million it would have raised at the higher end of its earlier price band.

The Glendale, California-based firm develops software used by technicians in the heating, ventilation, and air conditioning (HVAC) industries, carving out a strong position in this niche market.

MARKET CONTEXT AND COMPETITORS

ServiceTitan’s IPO comes at a time when the U.S. IPO market is showing signs of recovery in 2024, following a prolonged period of reduced activity. The company is set to join other venture-backed firms, such as Reddit and cybersecurity software provider Rubrik, which have gone public this year.

ServiceTitan’s founders, Ara Mahdessian and Vahe Kuzoyan, have transformed the company into a market leader within its specialized sector, which serves businesses reliant on field technicians.

The company will trade on the Nasdaq under the ticker symbol “TTAN.”

LEADERSHIP AND UNDERWRITERS

Goldman Sachs, Morgan Stanley, Wells Fargo, and Citigroup are spearheading a 14-firm underwriting syndicate for the IPO, underscoring strong institutional support for ServiceTitan’s public debut.

As the capital markets continue to recover, ServiceTitan’s IPO will be closely watched as a signal of investor appetite for venture-backed software firms targeting niche industries.

Reddit Acquires Memorable AI, a Generative AI Startup

/in /tarafından

Memorable AI Develops Technology to Optimize Ad Text, Images, and Videos for Advertisers Devamını Oku