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 shares jump more than 10% on second-quarter sales and guidance beat