Let’s look at the financial metrics sequentially:
- Revenue grew 73% YoY, reaching $427M last quarter.
- Next quarter, the company forecasts revenue of just $370M, but this is due to annual seasonality, which was particularly noticeable two years ago when revenue dropped from $200M to $163M.
- The Q4 2025 forecast projects revenue of $556M—a new company record. However, growth will be just 20% YoY, which looks modest compared to the current 73%, but remains double-digit and confirms a steady upward trend.
The company’s key advantage is its gross margin, which consistently exceeds 85% and reached 92.6% last quarter—an impressive result.
- Operating expenses were $200M a year ago but have since surged to $300–350M over the past year.
- The company should indeed control costs, but it appears to have already reached profitable operational growth.
- With Invested Capital at $411M, projected annual operating profit ($49M × 4) would be $196M. The company’s ROIC looks very compelling.
Liquidity:
- Cash & short-term investments: $1.8B
- Current liabilities $176M
- Market cap:
20B
- Loss over the past 12 months: $484M
Conclusion:
We’re looking at a fast-growing, high-margin company with low debt, significant liquidity reserves, and room for further growth.
The main negative factor is the automatic blocking system for low-karma users on the site. The platform is indeed very strict in this regard, but it doesn’t seem to hinder its growth or profitability.
RDDT stock previously declined due to risks of reduced online ad spending amid weak economic indicators and changes in pricing policies. However, the market now realizes this was just a temporary Trump-era play that’s coming to an end—and we’re getting a great entry price.
- Revenue grew 73% YoY, reaching $427M last quarter.
- Next quarter, the company forecasts revenue of just $370M, but this is due to annual seasonality, which was particularly noticeable two years ago when revenue dropped from $200M to $163M.
- The Q4 2025 forecast projects revenue of $556M—a new company record. However, growth will be just 20% YoY, which looks modest compared to the current 73%, but remains double-digit and confirms a steady upward trend.
The company’s key advantage is its gross margin, which consistently exceeds 85% and reached 92.6% last quarter—an impressive result.
- Operating expenses were $200M a year ago but have since surged to $300–350M over the past year.
- The company should indeed control costs, but it appears to have already reached profitable operational growth.
- With Invested Capital at $411M, projected annual operating profit ($49M × 4) would be $196M. The company’s ROIC looks very compelling.
Liquidity:
- Cash & short-term investments: $1.8B
- Current liabilities $176M
- Market cap:
20B - Loss over the past 12 months: $484M
Conclusion:
We’re looking at a fast-growing, high-margin company with low debt, significant liquidity reserves, and room for further growth.
The main negative factor is the automatic blocking system for low-karma users on the site. The platform is indeed very strict in this regard, but it doesn’t seem to hinder its growth or profitability.
RDDT stock previously declined due to risks of reduced online ad spending amid weak economic indicators and changes in pricing policies. However, the market now realizes this was just a temporary Trump-era play that’s coming to an end—and we’re getting a great entry price.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.