RDDT is an absolute beast of a company with real catalysts soon to come

Gross margin: 91.5%. That is seven straight quarters above 90%. For every dollar of revenue they keep over 91 cents.

That is software margin most companies only dream of.

Revenue: $663 million last quarter. Up 69% year over year. The seventh consecutive quarter of growth above 60%. Advertising alone grew 74%.

And it scales over almost nothing. Capital expenditures were $1 million. That is 0.2% of revenue. They generated $311 million in free cash flow at a 47% margin while spending basically nothing to do it.

Net income went from $26 million to $204 million in a single year. EPS up over 7x.

The biggest catalysts that could potentially happen this year are the AI licensing deals between Google and open AI. People don’t understand how important RDDTs core data is. it’s massive, human-generated, opinionated, and spans basically every topic. You can’t just scrape that elsewhere at scale. That gives Reddit real leverage.

This combined with ending of the anthropic lawsuit, we can start to see some real momentum and repricing of RDDT within the next coming months