Core Insights - Reddit is expected to report strong earnings with adjusted EPS projected at $1.07, an increase of over 80% from $0.59 in the same quarter last year [1] - Revenue is anticipated to reach $549 million, reflecting a 58% increase from $348 million in the previous year [2] - Daily active users are estimated at 114 million, marking a 17% increase year-over-year, but indicating a deceleration in growth [3] Financial Performance - Advertising revenue is projected to increase by 63% to $513 million in the third quarter [4] - Analysts from firms like Deutsche Bank and B Riley Securities have maintained Buy ratings on Reddit's stock, indicating positive sentiment in the market [4] User Growth and Engagement - The company has experienced five consecutive quarters of slowing growth in daily active users since a significant increase in Q2 2024 [3] - Concerns about referral traffic from Google persist, but internal initiatives may enhance user growth control [5] Licensing Deals and Partnerships - Analysts are closely monitoring updates regarding Reddit's licensing agreements with Google and OpenAI, with potential new pricing models being discussed [6] - Stock performance fluctuated due to concerns over Reddit's negotiating power following a reported decline in citations in OpenAI's ChatGPT [7]
Reddit set to report Q3 earnings with user growth, AI deals in focus