Overview
- The company guided fourth-quarter revenue to $655 million–$665 million versus the $637.9 million LSEG consensus and projected adjusted EBITDA of $275 million–$285 million versus $258.8 million expected.
- Third-quarter revenue rose 68% to $585 million, beating the $545.7 million estimate, with earnings per share of $0.80 versus $0.51 expected as shares gained more than 2% after hours.
- Daily active uniques reached 116 million, up 19% year over year, while average revenue per user increased 41% to $5.04, and the company highlighted 30-language machine translation as a driver of international growth.
- Management credited AI-optimized advertising that places promotions in relevant subreddit threads with boosting marketer spend and supporting the stronger outlook.
- Reddit licenses data to Google and OpenAI and last week sued Perplexity AI and three other scraping firms for alleged illegal collection to protect the value of its content.