Reddit Inc. reported weaker-than-expected user growth in its fourth quarter, leading to a 15% decline in shares during after-hours trading.

The social media platform averaged 101.7 million daily active users, falling short of analysts’ expectations of 103.8 million.

The slower growth was attributed to a change in Google’s search algorithm, which affected traffic.

Reddit’s visibility largely depends on search engines, with Google accounting for up to 50% of its daily traffic.

Despite missing user growth targets, Reddit’s holiday quarter sales rose 71% to US$427.7 million, surpassing the US$405 million analyst estimate.

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