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yesterday

Reddit Beats Q2 Earnings Estimates and Lifts Q3 Forecast

Robust DAU growth alongside expanded AI feature use supports a higher outlook for Q3 revenue and EBITDA

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Reddit's logo is displayed, at the New York Stock Exchange (NYSE) in New York City, U.S., March 21, 2024. REUTERS/Brendan McDermid/File Photo
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Overview

  • In the second quarter, Reddit delivered earnings of $0.45 per share on $500 million in revenue, surpassing expectations of $0.19 EPS and $426 million in sales
  • Global daily active users climbed 21% year-over-year to 110.4 million, exceeding analyst projections of 109 million
  • The company raised its third-quarter revenue forecast to $535–545 million and adjusted EBITDA guidance to $185–195 million, both ahead of Street estimates
  • CEO Steve Huffman reported that the AI-powered Reddit Answers tool now attracts 6 million weekly users and will be integrated more deeply into search
  • Despite traffic volatility from Google Search algorithm shifts, strong user engagement and diversified monetization continued to drive growth