Core Insights - Reddit Inc. reported a revenue of $584.91 million for the quarter ended September 2025, marking a 67.9% increase year-over-year and exceeding the Zacks Consensus Estimate by 6.31% [1] - The earnings per share (EPS) for the quarter was $0.80, significantly up from $0.16 in the same quarter last year, representing a surprise of 50.94% over the consensus estimate of $0.53 [1] Financial Performance Metrics - Daily Active Uniques (DAUq) globally reached 116 million, surpassing the average estimate of 113.88 million [4] - Average Revenue Per User (ARPU) globally was $5.04, exceeding the average estimate of $4.85 [4] - DAUq in the U.S. was 51.6 million, slightly below the average estimate of 51.8 million, while international DAUq was 64.4 million, above the estimate of 62.02 million [4] - U.S. ARPU was $9.04, higher than the estimated $8.52, while international ARPU was $1.84, exceeding the estimate of $1.70 [4] - Logged-out DAUq globally was 65.8 million, above the estimate of 63.25 million, with U.S. logged-out DAUq at 28.5 million, slightly above the estimate of 28.12 million [4] - Weekly Active Uniques (WAUq) globally reached 443.8 million, surpassing the estimate of 430.85 million [4] Revenue Breakdown - Revenue from the United States was $480 million, significantly above the average estimate of $444.44 million, reflecting a year-over-year increase of 66.7% [4] - International revenue was reported at $105 million, slightly below the average estimate of $106.64 million, but still showing a year-over-year increase of 73.8% [4] Stock Performance - Reddit Inc.'s shares have returned +4% over the past month, outperforming the Zacks S&P 500 composite's +3.6% change [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating potential for further outperformance in the near term [3]

Reddit Inc. (RDDT) came out with quarterly earnings of $0.8 per share, beating the Zacks Consensus Estimate of $0.53 per share. This compares to earnings of $0.16 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +50.94%. A quarter ago, it was expected that this company would post earnings of $0.2 per share when it actually produced earnings of $0.45, delivering a surprise of +125%.Over the last four quarters, the company has su ...

Financial Performance - Revenue for Q3 2025 was $584.9 million, marking a 68% increase compared to the same period last year[102]. - Average Revenue Per Unique (ARPU) was $5.04 for Q3 2025, reflecting a 41% year-over-year increase[124]. - Net income for Q3 2025 was $162.7 million, significantly up from $29.9 million in Q3 2024[102]. - Adjusted EBITDA for Q3 2025 was $236.0 million, compared to $94.1 million in Q3 2024[102]. - Free Cash Flow for Q3 2025 was $183.1 million, up from $70.3 million in Q3 2024[102]. - Revenue for the three months ended September 30, 2025, was $584,911,000, representing a 68% increase from $348,351,000 in 2024[133]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $518,027,000, a significant increase of 374,350,000 compared to $143,677,000 in 2024[133]. - Net income for the nine months ended September 30, 2025, was $278,118,000, a substantial recovery from a net loss of $555,312,000 in 2024[133]. User Engagement - Daily Active Uniques (DAUq) reached 116.0 million for Q3 2025, a 19% increase year over year[102]. - Global DAUq grew 19% year over year, driven by a 31% increase in the rest of the world[110]. Expenses - Operating expenses for Q3 2025 were $393.9 million, compared to $306.9 million in Q3 2024[102]. - Research and development expenses for the three months ended September 30, 2025, were $196,379,000, compared to $166,701,000 in 2024, reflecting ongoing investment in product development[145]. - Sales and marketing expenses for the three months ended September 30, 2025, were $128,707,000, compared to $74,510,000 in 2024, highlighting increased investment in marketing efforts[145]. - Cost of revenue for the nine months ended September 30, 2025, was $135,498,000, an increase from $91,750,000 in 2024, indicating higher operational costs associated with revenue generation[145]. - Cost of revenue for the three months ended September 30, 2025, increased by $17.9 million, or 52%, primarily due to increased hosting usage to support user growth[149]. - Research and development expenses for the three months ended September 30, 2025, increased by $29.7 million, or 18%, driven by higher employee-related costs[150]. - Sales and marketing expenses for the three months ended September 30, 2025, increased by $54.2 million, or 73%, primarily due to increased marketing expenses[151]. - General and administrative expenses for the three months ended September 30, 2025, increased by $3.1 million, or 5%[153]. Cash Flow and Liquidity - Cash, cash equivalents, and marketable securities totaled $2.2 billion as of September 30, 2025[102]. - The company reported net cash provided by operating activities of $185,159,000 for the three months ended September 30, 2025, compared to $71,622,000 in 2024, showcasing improved operational efficiency[132]. - Net cash provided by operating activities was $424.1 million for the nine months ended September 30, 2025, compared to $132.1 million for the same period in 2024, reflecting a significant increase[165]. - Free Cash Flow increased to $420.5 million for the nine months ended September 30, 2025, from $126.7 million in the prior year, driven primarily by an increase in net income[170]. - The company had cash and cash equivalents of $911.7 million and marketable securities of $1.3 billion as of September 30, 2025, indicating strong liquidity[176]. - The available balance under the Revolving Credit Facility was $494.6 million as of September 30, 2025[160]. - The company believes its cash flows from operations and existing resources will be sufficient to meet its working capital needs for at least the next 12 months[163]. Investment and Financing Activities - Net cash used in investing activities was $(13.1) million for the nine months ended September 30, 2025, compared to $(397.6) million in 2024, indicating a substantial reduction in cash outflow[168]. - Net cash used in financing activities was $(61.5) million for the nine months ended September 30, 2025, compared to $380.2 million provided in 2024, primarily due to cash payments for taxes related to restricted stock units[169]. - The company made additional purchases of marketable securities totaling $1.6 billion during the nine months ended September 30, 2025[168]. Tax and Regulatory Matters - The company has maintained a full valuation allowance against its U.S. deferred tax assets, with a potential release expected within the next 18 months based on positive operating results[143]. - The company did not have any off-balance sheet financing arrangements or relationships with unconsolidated entities during the periods presented[171]. - The company has not entered into any foreign currency exchange contracts for hedging purposes, although it may consider doing so in the future as operations grow[177]. IPO and Market Position - The company completed its IPO in March 2024, resulting in net proceeds of $600.0 million[157].

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]

TRENDING: Palantir, Robinhood Earnings Due After Market's Tricky October Reddit (RDDT) stock rallied late Thursday after the social mediacompany reported third-quarter results that beat Wall Street's consensus expectations. Reddit said that it earned 80 cents per share for the September-ended quarter, compared with earnings of 16 cents per share a year earlier. That beat the earnings of 52 cents per share that analysts polled by FactSet were forecasting. Meanwhile, sales jumped 68% to $585 million, ahead of ...

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]