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Reddit Tops Q3 Forecasts, Lifts Outlook as AI Ads Power Growth

Shares rose after a 68% revenue jump that reflected stronger monetization.

Overview

  • Revenue reached $585 million versus $546 million expected, with earnings per share of $0.80 beating a $0.51 consensus.
  • Fourth-quarter revenue guidance came in at $655 million to $665 million, alongside an adjusted EBITDA outlook of $275 million to $285 million.
  • Global daily active uniques increased 19% to 116 million and average revenue per user rose 41%, helped by product improvements and broader translation support.
  • Management highlighted AI-optimized ad tools that place contextually relevant ads in subreddit discussions, driving higher marketer spending and better targeting.
  • Reddit continues licensing data to Google and OpenAI and filed suits against Perplexity AI and three others over alleged scraping, while the stock climbed more than 14%.