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].
Reddit just reported third-quarter earnings that beat on sales