Core Insights - Reddit's stock surged over 13% following the announcement of third quarter revenue that exceeded Wall Street forecasts, with revenue reaching $585 million, a 68% increase year-over-year [1][7] - Daily active users (DAUs) grew 19% to 116 million, surpassing analyst expectations, although this growth rate has been slowing over the past five quarters [2][5] Revenue and Earnings - The reported revenue of $585 million for Q3 was above the expected $549 million, indicating strong performance [1][7] - Earnings per share for the quarter were $0.80, a significant increase from $0.16 in the same period last year [6] User Growth Metrics - DAUs increased to 116 million, exceeding the expected 114 million, but the growth rate has been decelerating, raising concerns among analysts [2][5] - International users contributed positively, with 64.4 million international DAUs reported, above the anticipated 62.2 million, while US users were slightly below expectations at 51.6 million [4] Future Outlook - The company provided an optimistic forecast for Q4, expecting revenue of $660 million, surpassing the Wall Street expectation of $636 million [7] - The forecast for Q4 adjusted EBITDA is $280 million, also ahead of the expected $258 million [8]
Reddit stock soars after Q3 revenue, daily active users beat Wall Street estimates