Reddit needs time, but is on the way to profitability: Analyst

Reddit (RDDT) released its first quarter earnings report following its March IPO, revealing that revenue increased 48% to $243 million. The company also issued second quarter guidance that topped analysts' estimates.

Roth MKM Managing Director Rohit Kulkarni joins Yahoo Finance to give insight into Reddit's performance and why he believes the company is headed in the right direction.

At the time of Reddit's stock listing, some felt the social media platform had not pursued monetization aggressively enough. However, Kulkarni is optimistic about Reddit's monetization process: "They're very, very early with monetization. They have a lot of low-hanging fruit to just clean up their ads manager, clean up at ad tech, and put the right ads in front of the right people at the right time. So all of those things are just coming together slowly, but it will be a multi-quarter process. But what we are seeing right now is a right step in monetization, and we are confident that there are several revenue catalysts ahead."

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Nicholas Jacobino