Reddit (RDDT) reports strong Q3 earnings results, exceeding expectations and surging in after-hours trading

From CNBC: 2024-10-29 16:30:55

Reddit CEO Steve Huffman celebrated the company’s successful IPO on the NYSE, with shares opening at $47. After reporting Q3 results that exceeded expectations, Reddit’s stock surged 22% in after-hours trading, hitting over $100 for the first time. The company posted a 68% revenue increase YoY, turning profitable with $29.9 million in net income.

For Q4, Reddit projects revenue between $385 million and $400 million, outperforming analyst estimates. Daily active users grew 47% YoY to 97.2 million, surpassing expectations, while the platform’s average revenue per user for Q3 was $3.58, higher than expected at $3.24. Reddit’s market cap now stands at $13.6 billion.

Google search updates have boosted Reddit’s online traffic, attracting new users. The company aims to convert these “logged-out users” to active users to increase ad revenue. Global logged-out users surged 70% YoY to 53.1 million, while logged-in users grew 27% to 44.1 million. Reddit remains optimistic about its growth prospects and user engagement.



Read more at CNBC:: Reddit (RDDT) Q3 earnings reports 2024