Reddit Narrows Losses as Revenue Surges on Advertising Growth
- August 6, 2024
Key Takeaways
- Reddit beat analysts’ expectations on the top and bottom lines with its second-quarter results.
- The social media company reported narrowing losses as its advertising revenue surged from a year ago.
- The results marked the second time the company has reported quarterly earnings since going public in March.
Reddit ( RDDT ) beat analysts’ expectations on the top and bottom lines in its second quarterly earnings report since its March initial public offering (IPO) .
The social media platform reported second-quarter revenue of $281.2 million, up 54% year-over-year and above estimates compiled by Visible Alpha. Reddit’s loss of 6 cents per share narrowed from 70 cents a year ago and was a fraction of the 32 cents per share analysts expected.
Advertising Revenue Jumps 41% From a Year Ago
Reddit said its advertising revenue jumped 41% year-over-year to $253.1 million, while other revenue increased nearly eight-fold to $28.1 million.
Daily active users grew 51% to 91.2 million, with average revenue per user landing at $3.08. Analysts had called for DAUs of 85.5 million.
Looking ahead, Reddit projected third-quarter revenue of $290 million to $310 million, above the analyst consensus of $283 million.
Reddit shares were down 3% at $52.70 in extended trading Tuesday as of 6:10 p.m. ET following the company’s earnings release, though even at that level, they’ve gained 55% from Reddit’s IPO price of $34.