Core Insights - Reddit reported strong third-quarter earnings, with earnings per share of 80 cents, significantly higher than the 16 cents per share from the previous year and surpassing analyst expectations of 52 cents per share [2] - Revenue for the quarter increased by 68% to $585 million, exceeding estimates of $549 million [2] - Daily active users averaged 116 million, a 19% year-over-year increase, surpassing the forecast of 113.9 million [3] Financial Performance - Earnings per share for the September-ended quarter: 80 cents, compared to 16 cents a year earlier [2] - Revenue for the quarter: $585 million, up from $349 million a year earlier, beating estimates of $549 million [2] - Guidance for the current quarter indicates sales of $660 million at the midpoint, higher than the previous forecast of $638 million [5] User Growth and Engagement - Daily active users averaged 116 million, reflecting a 19% increase year-over-year [3] - Reddit's ranking as the third most-visited website in the U.S. highlights its growing user engagement [4] - The platform is seen as a starting point for users seeking trusted perspectives and community engagement [5] Stock Performance - Reddit stock rose 3.5% to $201.60 in after-hours trading following the earnings report [6] - Year-to-date, Reddit stock is up 19%, although it has pulled back approximately 30% from its record high of $282.95 on September 18 [7] - Prior to the earnings report, Reddit stock had an IBD Composite Rating of 91 out of a possible 99, indicating strong growth potential [8]
Reddit Stock Gains After Beating Estimates With 68% Revenue Growth