Reddit Surges 20% After Reporting Q3 Revenue of $348.4 Million, Beating Estimates

Oct 29, 2024, 08:22 PM

Reddit has reported a strong Q3 2024 performance, with revenue up 68% year-over-year to $348.4 million, surpassing Wall Street estimates of $312.8 million. The company's net income was $29.9 million, a significant turnaround from the expected loss of $13.8 million. Reddit's earnings per share (EPS) were $0.16, beating the estimated -$0.13. The platform also saw a 47% year-over-year increase in Daily Active Uniques (DAUq) to 97.2 million users. Advertising revenue was $315.1 million, and the company achieved a GAAP profitability with a net margin of 8.6%. Reddit also reported an adjusted EBITDA of $94.1 million and a gross margin of 90.1%. Reddit's stock surged 20% after hours, trading at $100 per share. For Q4, Reddit projects revenue between $385 million and $400 million, and adjusted EBITDA between $110 million and $125 million.