Financial Data and Key Metrics Changes - Reddit reported total revenue of $585 million for Q3 2025, representing a 68% year-over-year increase [3][11][17] - The company achieved a net income of $163 million, with a net margin of 28%, an improvement of $133 million from the previous year [3][17][24] - Adjusted EBITDA margin reached 40%, marking the first time this profitability goal set at IPO was achieved [3][17][24] - Average revenue per user (ARPU) grew 41% year-over-year to $5.04 [19] Business Line Data and Key Metrics Changes - Advertising revenue grew 74% year-over-year to $549 million, driven by broad-based strength across objectives, verticals, and geographies [11][19] - Other revenue, including data licensing, reached $36 million, up 7% year-over-year [19] - The total active advertiser count expanded by over 75% year-over-year in Q3 [11] Market Data and Key Metrics Changes - Revenue growth in the U.S. was 67% year-over-year, while international revenue grew 74% [19] - The company reported 116 million daily active users (DAUQ) and 444.444 million weekly active users (WAUQ), both growing around 20% year-over-year [3] Company Strategy and Development Direction - Reddit's strategy focuses on enhancing user experience through product improvements, search capabilities, and international growth [5][8] - The company aims to grow app users by improving retention and diversifying traffic sources, including organic, paid, and publisher-driven [8] - Investments in advertising solutions and unique ad formats are intended to drive performance and efficiency for advertisers [12][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operating environment, noting stability but low visibility due to external factors like tariffs [72] - For Q4 2025, revenue is estimated to be between $655 million and $665 million, representing 53% to 55% year-over-year growth [24] - The company aims for a North Star adjusted EBITDA margin of over 50% in the medium term [75] Other Important Information - Reddit is focusing on improving onboarding experiences to enhance user engagement and retention [27][50] - The company is investing in tools for moderators to help grow and strengthen communities [5][6] Q&A Session Summary Question 1: User growth trends and traffic diversification - Management noted that product initiatives, including machine translation, were significant contributors to user growth, with a focus on improving the first session user experience [31][32] Question 2: Revenue opportunity from Reddit Pro - Reddit Pro is seen as a way to bring value to the platform by increasing engagement and potentially converting that into revenue [36][38] Question 3: Marketing spend and user acquisition - The company is currently spending low to mid-single digits as a percentage of revenue on marketing, with a focus on quality user acquisition [40] Question 4: Engagement of users acquired through performance ads - Management highlighted that brand campaigns have led to increased app installs and awareness, providing a foundation for future performance [44][46] Question 5: Simplified onboarding flow results - Early results from the simplified onboarding flow are expected soon, with a focus on streamlining the user experience [50] Question 6: LLM licensing and data value - Management stated that relationships with LLM companies are healthy, focusing on mutual benefits and enhancing user experiences [53][66]

with those results. Sure. >> Credit beating on the top and bottom lines.Earnings of 80 cents per share, far ahead of expectations of 51 cents per share. Revenues of $585 million ahead of estimates of 546 million. The company also guiding to Q4 revenue and Ebida in ranges ahead of analyst expectations.I just spoke with CEO Steve Huffman, who told me that Reddit's ad business continues to outpace its peers with 74% year-over-year growth and 75% growth in total advertiser count. He said AI is helping across th ...

The social-media company posted a profit of $162.7 million, driven by higher advertising demand as it continues to draw in more users. ...

Core Insights - Growth in search and Reddit Inc.'s globalization efforts significantly exceeded Wall Street's expectations in its third-quarter results [1] Group 1 - Reddit's third-quarter performance showcased strong growth driven by its search capabilities [1] - The company's efforts to expand globally contributed to its positive financial results [1]

Core Insights - Reddit reported strong third-quarter earnings, with earnings per share of 80 cents, significantly higher than the 16 cents per share from the previous year and surpassing analyst expectations of 52 cents per share [2] - Revenue for the quarter increased by 68% to $585 million, exceeding estimates of $549 million [2] - Daily active users averaged 116 million, a 19% year-over-year increase, surpassing the forecast of 113.9 million [3] Financial Performance - Earnings per share for the September-ended quarter: 80 cents, compared to 16 cents a year earlier [2] - Revenue for the quarter: $585 million, up from $349 million a year earlier, beating estimates of $549 million [2] - Guidance for the current quarter indicates sales of $660 million at the midpoint, higher than the previous forecast of $638 million [5] User Growth and Engagement - Daily active users averaged 116 million, reflecting a 19% increase year-over-year [3] - Reddit's ranking as the third most-visited website in the U.S. highlights its growing user engagement [4] - The platform is seen as a starting point for users seeking trusted perspectives and community engagement [5] Stock Performance - Reddit stock rose 3.5% to $201.60 in after-hours trading following the earnings report [6] - Year-to-date, Reddit stock is up 19%, although it has pulled back approximately 30% from its record high of $282.95 on September 18 [7] - Prior to the earnings report, Reddit stock had an IBD Composite Rating of 91 out of a possible 99, indicating strong growth potential [8]

Reddit Inc. (NYSE:RDDT) shares climbed after the company released its third-quarter earnings report after Thursday's closing bell, beating estimates on the top and bottom lines. RDDT stock is moving. See the real-time price action here.The Details: Reddit reported quarterly earnings of 80 cents per share, which beat the analyst estimate of 52 cents by 55%.Quarterly revenue came in at $585 million, which beat the analyst consensus estimate of $545.71 million by 7.2%.Read Next: Elon Musk’s Tesla Fleet Dream—A ...

Financial Performance - Revenue grew 68% year-over-year to $585 million, with ad revenue increasing 74% to $549 million[3] - Net income reached $163 million, representing 28% of revenue, an increase of $133 million from the prior year[3] - Adjusted EBITDA was $236 million, accounting for 40% of revenue, an improvement of $142 million from the prior year[3] - Operating cash flow was $185 million, an increase of $114 million from the prior year[3] - Free Cash Flow was $183 million, up $113 million from the prior year[3] - Reddit, Inc. reported revenue of $584.9 million for the three months ended September 30, 2025, representing a 68% increase from $348.4 million in the same period of 2024[24] - The company achieved a net income of $162.7 million for the three months ended September 30, 2025, compared to a net income of $29.9 million in the prior year, marking a significant improvement[24] - Adjusted EBITDA for the three months ended September 30, 2025, was $236.0 million, with an adjusted EBITDA margin of 40.3%, compared to 27.0% in the prior year[26] Cash Flow - Operating cash flow for the three months ended September 30, 2025, was $185.2 million, up from $71.6 million in the same period of 2024, resulting in an operating cash flow margin of 31.7%[27] - Free cash flow for the three months ended September 30, 2025, was $183.1 million, compared to $70.3 million in the same period of 2024, with a free cash flow margin of 31.3%[27] Assets and Liabilities - Total current assets increased to $2.77 billion as of September 30, 2025, from $2.22 billion as of December 31, 2024, reflecting strong liquidity[23] - Reddit's total assets reached $2.88 billion as of September 30, 2025, compared to $2.34 billion at the end of 2024, indicating robust growth[23] - The company reported total liabilities of $265.7 million as of September 30, 2025, an increase from $205.8 million at the end of 2024[23] - The company’s accumulated deficit decreased to $922.7 million as of September 30, 2025, from $1.20 billion at the end of 2024, reflecting improved financial performance[23] Research and Development - Research and development expenses for the three months ended September 30, 2025, were $196.4 million, up from $166.7 million in the same period of 2024, highlighting continued investment in innovation[24] User Engagement - Daily Active Uniques (DAUq) increased 19% year-over-year to 116.0 million[1] - Average Revenue Per Unique (ARPU) increased 41% year-over-year to $5.04 globally[22] Future Guidance - Revenue guidance for Q4 2025 is estimated to be between $655 million and $665 million[7] - Adjusted EBITDA guidance for Q4 2025 is projected to be between $275 million and $285 million[7]

Core Insights - Reddit's third-quarter earnings exceeded expectations, with significant revenue growth and net income increase, but user growth for logged-in users showed signs of slowing down [1][4]. User Growth - Global daily active uniques grew 19% year-over-year to 116 million, surpassing analyst estimates of 114 million [1]. - Logged-in DAUq in the U.S. rose 7% year-over-year to 23.1 million, a slowdown from the 12% growth in the previous quarter [2]. - Global logged-in DAUq increased 14% year-over-year to 50.2 million, while logged-out DAUq jumped 24% to 65.8 million [2]. Financial Performance - Sales surged 68% year-over-year in the third quarter, with net income reaching $163 million, a 23% increase from $133 million in the same period last year [4]. - The company expects fourth-quarter sales between $655 million and $665 million, exceeding Wall Street's expectation of $638 million [4]. - Adjusted earnings for the fourth quarter are projected to be between $275 million and $285 million, surpassing projections of $259 million [5]. Revenue Metrics - Third-quarter global average revenue per user was $5.04, exceeding analyst estimates of $4.82 [5]. - Revenue in the U.S. was $480 million, surpassing expectations of $445 million, while international sales reached $105 million, ahead of the projected $104 million [5]. - The "Other revenue" category, including data licensing, rose 7% year-over-year to $36 million [6]. Earnings Summary - Earnings per share were reported at 80 cents, compared to the expected 51 cents [7]. - Total revenue for the quarter was $585 million, exceeding the expected $546 million [7].

Core Insights - Reddit forecasts fourth-quarter revenue to exceed Wall Street estimates, driven by its artificial intelligence-powered advertising tools that enhance marketing spending on the platform [1] Company Summary - The anticipated revenue growth is attributed to the implementation of advanced advertising technologies, which are expected to attract increased marketing investments [1]

Welcome back to Market on Close. Another stock in focus after the close today is Reddit. It will report its earnings for the third quarter.Estimates calling for adjusted EPS of 52 cents on revenue of $550 million. And the company has topped both revenue and earning estimates for six consecutive quarters. Shares are up more than 20% so far this year.And that means it's time for Options Corner. Of course, we are looking at Reddit today ahead of those earnings. Joining us in studio here, Rick Dat, our lead mar ...