Reddit(RDDT)

Search documents
Amazon, Coinbase, and Reddit earnings in focus
CNBC Television· 2025-08-01 01:10
Cloud Computing - Amazon's AWS is under pressure to match Microsoft Azure's Q1 growth of 39%, as AWS delivered over 60% of Amazon's operating income last quarter with triple the company average margins [2] - Amazon plans to invest $100 billion this year, while Microsoft increased its spending to $120 billion and Alphabet to $85 billion [3] E-commerce & Tariffs - Analysts are optimistic about Amazon's ability to navigate tariff impacts, expecting positive results in third-party seller performance and online sales [4][5] - The tariff force started on April 2nd, coinciding with the second quarter [4] Cryptocurrency Market - Analysts anticipate a roughly 30% drop in retail trading volumes for Coinbase compared to the same quarter last year [8] - Analysts expect a 38% year-over-year increase in revenue from stablecoins for Coinbase [8] - Speculative retail trading slowed across centralized exchanges like Coinbase as Washington's focus shifted to tariffs, with institutional inflows into crypto ETFs and buying by crypto treasury companies supporting crypto prices [7] - The SEC wants to bring all financial markets in the US on-chain [9] Reddit's Performance - Reddit's shares have gained 42% in the past two months, with 62% of analysts having a buy rating on the stock and 34% having a hold rating [13] - Analysts expect Reddit's revenue to grow nearly 52% and earnings to swing to a 19 cent per share gain from a 6 cent per share loss in the year-ago quarter [14] - There are concerns about Reddit's dependence on Google traffic and the growing negative impact from AI search [15]
Reddit Inc. (RDDT) Q2 Earnings: How Key Metrics Compare to Wall Street Estimates
ZACKS· 2025-07-31 23:01
For the quarter ended June 2025, Reddit Inc. (RDDT) reported revenue of $499.63 million, up 77.7% over the same period last year. EPS came in at $0.45, compared to -$0.06 in the year-ago quarter. Shares of Reddit Inc. have returned -6.3% over the past month versus the Zacks S&P 500 composite's +2.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. The reported revenue compares to the Zacks Consensus Estimate of $427.41 ...
Reddit says it's doubling down on native search as it reports its 'most profitable quarter yet'
Business Insider· 2025-07-31 23:00
"Reddit is one of the few platforms positioned to become a true search destination. We offer something special: a breadth of conversations and knowledge you can't find anywhere else," Reddit said in its Q2 report on Thursday. "Every week, hundreds of millions of people come to Reddit looking for advice, and we're turning more of that intent into active users of Reddit's native search." Reddit said its core search product has 70 million weekly users, while Reddit Answers — its AI-powered search tool — has re ...
Reddit Inc. (RDDT) Surpasses Q2 Earnings and Revenue Estimates
ZACKS· 2025-07-31 22:20
Reddit Inc. (RDDT) came out with quarterly earnings of $0.45 per share, beating the Zacks Consensus Estimate of $0.2 per share. This compares to a loss of $0.06 per share a year ago. These figures are adjusted for non- recurring items. This quarterly report represents an earnings surprise of +125.00%. A quarter ago, it was expected that this company would post earnings of $0.02 per share when it actually produced earnings of $0.13, delivering a surprise of +550%. Over the last four quarters, the company has ...
Reddit revenue soars as it bets on AI and advertising
TechCrunch· 2025-07-31 22:13
Core Insights - Reddit's second-quarter earnings highlight a significant increase in focus on AI, particularly in enhancing its advertising business, which generated $465 million, accounting for 93% of total revenue [1] Advertising Business - The majority of Reddit's revenue is derived from advertising, with a reported $465 million in ad revenue for the second quarter [1] - New advertising features launched include Reddit Insights, which analyzes platform data for campaign strategies, and Conversation Summary Add-ons, allowing user discussions to be included in ads [2] Other Revenue Growth - The "other revenue" category, which includes data licensing deals with AI providers, saw a 24% year-over-year increase to $35 million, up from $28.1 million [3] - Reddit has established content licensing agreements with major AI companies like Google and OpenAI, indicating a steady income stream with long-term potential [4] AI Features - The Reddit Answers tool, launched in December, has gained traction with 6 million weekly users, up from 1 million in the previous quarter [5] - The company aims to integrate the Reddit Answers tool more deeply into the core search experience, enhancing the platform's search functionality [5]
Reddit(RDDT) - 2025 Q2 - Quarterly Report
2025-07-31 22:13
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission File Number: 001-41983 _________________________ Reddit, Inc. (Exact name of registrant as specified in its chart ...
Reddit(RDDT) - 2025 Q2 - Earnings Call Transcript
2025-07-31 22:02
Financial Data and Key Metrics Changes - Revenue grew 78% year over year to $500 million, marking the fastest quarterly growth rate since 2022 [7][28] - Daily active users increased to 110 million, up 21% year over year, with growth in both the U.S. and international markets [7] - Adjusted EBITDA reached $167 million, with a margin of 33%, up over 1,900 basis points year over year [28][29] - GAAP net income was $89 million, translating to $0.48 per basic share [40] Business Line Data and Key Metrics Changes - Advertising revenue grew 84% year over year to $465 million, driven by broad-based strength across the business [20][31] - Other revenue, including data licensing, reached $35 million, growing 24% year over year [31] - Average revenue per user (ARPU) increased 47% year over year to $4.53 [31] Market Data and Key Metrics Changes - Revenue in the U.S. grew significantly, with international markets also showing strong performance, particularly in Europe [31] - The total active advertiser count expanded by over 50% year over year [20] Company Strategy and Development Direction - The company is focusing on improving the core product, enhancing search capabilities, and expanding internationally [12][15] - Strategic investments are being made in sales, marketing, and machine learning to drive user engagement and revenue growth [34][38] - The company is deprioritizing some initiatives, such as the user economy, to concentrate resources on areas that will drive immediate results [13][45] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the unique role Reddit plays in human conversation and its potential for growth [8][10] - The company sees a significant opportunity in becoming a trusted source of information in an increasingly automated world [10][12] - For Q3 2025, the company estimates revenue in the range of $535 million to $545 million, representing 54% to 56% year-over-year growth [41] Other Important Information - The company is investing in machine translation to unlock Reddit for millions of users across various regions [16] - The launch of new products like Dynamic Product Ads and Reddit Insights is expected to enhance advertiser performance and user engagement [22][24] Q&A Session Summary Question: What is one memorable discussion you had at the Cannes Lions Festival? - Management highlighted a discussion where an advertiser realized a new customer segment and expressed excitement about the quality of the team [43] Question: What projects are being prioritized over the user economy? - The focus is on improving user engagement through core app improvements and diversifying traffic sources [45] Question: How are U.S. user trends evolving? - There was a slower start in April, but traction improved throughout Q2, with higher daily active users reported in July [53][54] Question: What innovations are expected in the advertising business? - Exciting developments include Dynamic Product Ads and automation features that enhance advertiser onboarding and performance [56][57] Question: How is the search experience evolving with Reddit Answers? - The company is unifying the search experience to integrate Reddit Answers, making it more accessible for users [63] Question: How have advertiser relationships evolved? - The company has created a global accounts team to better service larger clients and is seeing increased demand for integrated advertising solutions [66] Question: What are the key learnings from marketing efforts? - There is a need to build awareness and consideration, especially outside the U.S., and to create a unique search experience on Reddit [75][78]
Reddit(RDDT) - 2025 Q2 - Earnings Call Transcript
2025-07-31 22:00
Financial Data and Key Metrics Changes - Revenue grew 78% year over year to $500,000,000, marking the fastest quarterly growth rate since 2022 [6][29] - Daily active users increased to 110,000,000, up 21% year over year, with growth in both the U.S. and international markets [6][32] - Adjusted EBITDA reached $167,000,000, with a margin of 33%, up over 1,900 basis points year over year [30][32] - GAAP net income was $89,000,000, translating to $0.48 per basic share [41] Business Line Data and Key Metrics Changes - Advertising revenue grew 84% year over year to $465,000,000, driven by broad-based strength across the business [20][32] - Other revenue, including data licensing, reached $35,000,000, growing 24% year over year [32] - Average revenue per user (ARPU) grew 47% year over year to $4.53 [32] Market Data and Key Metrics Changes - Revenue in the U.S. grew significantly, with international markets also showing strong performance, particularly in Europe [32] - The total active advertiser count expanded by over 50% year over year [20] Company Strategy and Development Direction - The company is focusing on improving the core product, enhancing search capabilities, and expanding internationally [12][15] - Strategic investments are being made in sales, marketing, and machine learning to drive user engagement and revenue growth [35][36] - The company is deprioritizing certain initiatives, such as the user economy, to concentrate resources on areas that will drive immediate results [12][46] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting a unique opportunity for Reddit as a community-driven platform in an increasingly automated world [7][16] - The company is focused on building a more personalized user experience to enhance engagement and retention [84] - Future revenue estimates for Q3 2025 are projected to be between $535,000,000 and $545,000,000, representing 54% to 56% year-over-year growth [42] Other Important Information - Machine translation is now live in 23 languages, facilitating international expansion [15] - The company is investing in marketing strategies to increase user awareness and engagement [19][20] Q&A Session Summary Question: What is one memorable discussion you had at the Cannes Lions Festival? - Management highlighted a discussion where an advertiser realized a new customer segment opportunity and praised the quality of the team [44] Question: What projects are being prioritized over the user economy? - The focus is on improving user engagement through core app improvements and diversifying traffic sources [46] Question: What innovations are expected in the ad business? - Exciting innovations include Dynamic Product Ads and automation features to enhance advertiser onboarding and performance [57] Question: How are user trends evolving in the U.S.? - User trends improved throughout Q2, with better traction noted as the quarter progressed [55] Question: How is the advertising relationship evolving? - The company is seeing growth in active advertisers and has created a global accounts team to service larger clients [68] Question: What are the early learnings from testing Reddit Lite internationally? - The test showed that simplifying the app experience leads to better engagement, and the focus is now on incorporating these improvements into the core app [102]
Reddit shares jump more than 10% on second-quarter sales and guidance beat
CNBC· 2025-07-31 20:11
Core Insights - Reddit's shares increased over 10% following the announcement of second-quarter earnings that exceeded sales and guidance expectations [1] - The company reported a 78% year-over-year sales growth in the second quarter, significantly surpassing consensus estimates by 17% [1] - Net income for the second quarter was $89 million, a turnaround from a net loss of $10 million in the same quarter last year [1] Financial Performance - Third-quarter revenue is projected to be between $535 million and $545 million, exceeding Wall Street's estimate of $473 million [2] - Adjusted EBITDA for the third quarter is expected to range from $185 million to $195 million, above the StreetAccount estimate of $160 million [2] - Global daily active users increased by 21% year-over-year to 110.4 million, surpassing analyst estimates of 109 million [2] Revenue Metrics - The second-quarter global average revenue per user was $4.53, exceeding analyst expectations of $3.90 [3] - U.S. sales for the second quarter reached $409 million, significantly higher than the StreetAccount estimate of $335 million [3] - International revenue for the quarter was $91 million, slightly above the projected $89 million [3] - "Other revenue," which includes data licensing, grew 24% year-over-year to $35 million [3] User Engagement - The second-quarter global logged-in daily active users rose 17% year-over-year to 49.3 million, while logged-out daily active users increased 24% to 61.1 million [4] Strategic Developments - The AI-powered Reddit Answers tool now has 6 million weekly users, a significant increase from 1 million last quarter, with plans for deeper integration into the search experience [5] - The CEO expressed excitement about the company's future and indicated a shift in focus by deprioritizing certain initiatives, including the user economy project [6]
Reddit(RDDT) - 2025 Q2 - Quarterly Results
2025-07-31 20:07
Exhibit 99.1 Reddit Announces Second Quarter 2025 Results Daily Active Uniques ("DAUq") increased 21% year-over-year to 110.4 million Revenue grew 78% year-over-year to $500 million Gross margin expanded year-over-year to 90.8% Net income of $89 million, 18% of revenue. Diluted EPS of $0.45 "Reddit is built for this moment. In a world where connection is increasingly rare, our communities show how valuable human conversation and knowledge really are," said Steve Huffman, Reddit Co-Founder and CEO. "We're fo ...