Reddit soared in after-hours trading on Tuesday after reporting better-than-expected revenue and offering upbeat revenue guidance for the current quarter, driven by strong user growth. The company, which went public in March, saw its stock rise more than 13%. Despite wider losses in Q1 due to IPO-related expenses, Reddit's revenue jumped by 48%, propelled by a 37% increase in daily active unique users. This user growth resulted in a 39% rise in advertising revenue. Looking forward, Reddit expects revenue between $240 million to $255 million, compared with Wall Street's estimates of $223 million.
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