Core Insights - Reddit Inc. reported quarterly earnings of $0.8 per share, exceeding the Zacks Consensus Estimate of $0.53 per share, and showing significant growth from $0.16 per share a year ago, resulting in an earnings surprise of +50.94% [1] - The company achieved revenues of $584.91 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 6.31% and increasing from $348.35 million year-over-year [2] - Reddit Inc. has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Performance - The earnings surprise for the previous quarter was +125%, with actual earnings of $0.45 per share compared to an expected $0.2 per share [1] - The current consensus EPS estimate for the upcoming quarter is $0.81, with projected revenues of $634.08 million, and for the current fiscal year, the EPS estimate is $1.88 on revenues of $2.06 billion [7] Stock Performance - Reddit Inc. shares have increased approximately 29% since the beginning of the year, outperforming the S&P 500's gain of 17.2% [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating expectations of continued outperformance in the near future [6] Industry Outlook - The Internet - Software industry, to which Reddit Inc. belongs, is currently ranked in the top 30% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Revenue for Q3 2025 was $584.9 million, marking a 68% increase compared to the same period last year[102]. - Average Revenue Per Unique (ARPU) was $5.04 for Q3 2025, reflecting a 41% year-over-year increase[124]. - Net income for Q3 2025 was $162.7 million, significantly up from $29.9 million in Q3 2024[102]. - Adjusted EBITDA for Q3 2025 was $236.0 million, compared to $94.1 million in Q3 2024[102]. - Free Cash Flow for Q3 2025 was $183.1 million, up from $70.3 million in Q3 2024[102]. - Revenue for the three months ended September 30, 2025, was $584,911,000, representing a 68% increase from $348,351,000 in 2024[133]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $518,027,000, a significant increase of 374,350,000 compared to $143,677,000 in 2024[133]. - Net income for the nine months ended September 30, 2025, was $278,118,000, a substantial recovery from a net loss of $555,312,000 in 2024[133]. User Engagement - Daily Active Uniques (DAUq) reached 116.0 million for Q3 2025, a 19% increase year over year[102]. - Global DAUq grew 19% year over year, driven by a 31% increase in the rest of the world[110]. Expenses - Operating expenses for Q3 2025 were $393.9 million, compared to $306.9 million in Q3 2024[102]. - Research and development expenses for the three months ended September 30, 2025, were $196,379,000, compared to $166,701,000 in 2024, reflecting ongoing investment in product development[145]. - Sales and marketing expenses for the three months ended September 30, 2025, were $128,707,000, compared to $74,510,000 in 2024, highlighting increased investment in marketing efforts[145]. - Cost of revenue for the nine months ended September 30, 2025, was $135,498,000, an increase from $91,750,000 in 2024, indicating higher operational costs associated with revenue generation[145]. - Cost of revenue for the three months ended September 30, 2025, increased by $17.9 million, or 52%, primarily due to increased hosting usage to support user growth[149]. - Research and development expenses for the three months ended September 30, 2025, increased by $29.7 million, or 18%, driven by higher employee-related costs[150]. - Sales and marketing expenses for the three months ended September 30, 2025, increased by $54.2 million, or 73%, primarily due to increased marketing expenses[151]. - General and administrative expenses for the three months ended September 30, 2025, increased by $3.1 million, or 5%[153]. Cash Flow and Liquidity - Cash, cash equivalents, and marketable securities totaled $2.2 billion as of September 30, 2025[102]. - The company reported net cash provided by operating activities of $185,159,000 for the three months ended September 30, 2025, compared to $71,622,000 in 2024, showcasing improved operational efficiency[132]. - Net cash provided by operating activities was $424.1 million for the nine months ended September 30, 2025, compared to $132.1 million for the same period in 2024, reflecting a significant increase[165]. - Free Cash Flow increased to $420.5 million for the nine months ended September 30, 2025, from $126.7 million in the prior year, driven primarily by an increase in net income[170]. - The company had cash and cash equivalents of $911.7 million and marketable securities of $1.3 billion as of September 30, 2025, indicating strong liquidity[176]. - The available balance under the Revolving Credit Facility was $494.6 million as of September 30, 2025[160]. - The company believes its cash flows from operations and existing resources will be sufficient to meet its working capital needs for at least the next 12 months[163]. Investment and Financing Activities - Net cash used in investing activities was $(13.1) million for the nine months ended September 30, 2025, compared to $(397.6) million in 2024, indicating a substantial reduction in cash outflow[168]. - Net cash used in financing activities was $(61.5) million for the nine months ended September 30, 2025, compared to $380.2 million provided in 2024, primarily due to cash payments for taxes related to restricted stock units[169]. - The company made additional purchases of marketable securities totaling $1.6 billion during the nine months ended September 30, 2025[168]. Tax and Regulatory Matters - The company has maintained a full valuation allowance against its U.S. deferred tax assets, with a potential release expected within the next 18 months based on positive operating results[143]. - The company did not have any off-balance sheet financing arrangements or relationships with unconsolidated entities during the periods presented[171]. - The company has not entered into any foreign currency exchange contracts for hedging purposes, although it may consider doing so in the future as operations grow[177]. IPO and Market Position - The company completed its IPO in March 2024, resulting in net proceeds of $600.0 million[157].

Financial Data and Key Metrics Changes - Reddit reported total revenue of $585 million for Q3 2025, representing a 68% year-over-year increase [3][11][17] - The company achieved a net income of $163 million, with a net margin of 28%, an improvement of $133 million from the previous year [3][17][24] - Adjusted EBITDA margin reached 40%, marking the first time this profitability goal set at IPO was achieved [3][17][24] - Average revenue per user (ARPU) grew 41% year-over-year to $5.04 [19] Business Line Data and Key Metrics Changes - Advertising revenue grew 74% year-over-year to $549 million, driven by broad-based strength across objectives, verticals, and geographies [11][19] - Other revenue, including data licensing, reached $36 million, up 7% year-over-year [19] - The total active advertiser count expanded by over 75% year-over-year in Q3 [11] Market Data and Key Metrics Changes - Revenue growth in the U.S. was 67% year-over-year, while international revenue grew 74% [19] - The company reported 116 million daily active users (DAUQ) and 444.444 million weekly active users (WAUQ), both growing around 20% year-over-year [3] Company Strategy and Development Direction - Reddit's strategy focuses on enhancing user experience through product improvements, search capabilities, and international growth [5][8] - The company aims to grow app users by improving retention and diversifying traffic sources, including organic, paid, and publisher-driven [8] - Investments in advertising solutions and unique ad formats are intended to drive performance and efficiency for advertisers [12][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operating environment, noting stability but low visibility due to external factors like tariffs [72] - For Q4 2025, revenue is estimated to be between $655 million and $665 million, representing 53% to 55% year-over-year growth [24] - The company aims for a North Star adjusted EBITDA margin of over 50% in the medium term [75] Other Important Information - Reddit is focusing on improving onboarding experiences to enhance user engagement and retention [27][50] - The company is investing in tools for moderators to help grow and strengthen communities [5][6] Q&A Session Summary Question 1: User growth trends and traffic diversification - Management noted that product initiatives, including machine translation, were significant contributors to user growth, with a focus on improving the first session user experience [31][32] Question 2: Revenue opportunity from Reddit Pro - Reddit Pro is seen as a way to bring value to the platform by increasing engagement and potentially converting that into revenue [36][38] Question 3: Marketing spend and user acquisition - The company is currently spending low to mid-single digits as a percentage of revenue on marketing, with a focus on quality user acquisition [40] Question 4: Engagement of users acquired through performance ads - Management highlighted that brand campaigns have led to increased app installs and awareness, providing a foundation for future performance [44][46] Question 5: Simplified onboarding flow results - Early results from the simplified onboarding flow are expected soon, with a focus on streamlining the user experience [50] Question 6: LLM licensing and data value - Management stated that relationships with LLM companies are healthy, focusing on mutual benefits and enhancing user experiences [53][66]

And right now we are 2 minutes away from the end of the trading day. Romaine Bostick alongside Katie Greifeld, taking you through to that closing bell with a global simulcast. Carol Massar Tim Stanovec join us from the radio booth as we bring together our audiences across all of our Bloomberg platforms, including our partnership with YouTube.Yesterday, guys, we faced a fire hose of earnings. We get quite a few more today, including out of some big names like Apple and Amazon. I thought you maybe forgot firm ...

Group 1: Earnings Reports - Amazon reported third-quarter net sales of $80.2 billion, beating the street estimate of $77 billion, while AWS net sales were $33 billion, missing the estimate of $34.2 billion [9][10] - Amazon's EPS was $1.95, exceeding the expected $1.58, but the operating margin was 9.7%, below the anticipated 11.1% [10] - Roku's full-year net revenue forecast was raised to $4.69 billion, slightly above the estimate of $4.66 billion, but shares fell 10% post-market [16][17] Group 2: Market Reactions - Amazon shares rose approximately 10% in after-hours trading following the earnings report, indicating positive investor sentiment [15] - Despite a strong earnings report, Zillow shares dropped about 1% in after-hours trading, despite beating revenue estimates [22] - Reddit's shares increased by 11% in after-hours trading after reporting daily active users of 116 million, surpassing the estimate of 114 million [26][27] Group 3: Company Guidance and Future Outlook - Amazon guided for fourth-quarter net sales between $206 billion and $213 billion, aligning with market expectations [12][13] - Atlassian projected fiscal second-quarter revenue to exceed street estimates, with cloud revenue expected to rise 23% year-over-year [23] - Twilio expects fiscal year adjusted operating income of $900 million to $910 million, above the street estimate of $867.9 million [28]

Group 1: Apple Q4 Earnings Overview - Apple's Q4 EPS was $1.85, exceeding the Street's estimate of $1.77 [1] - Q4 revenue reached $102.47 billion, slightly above the Street's expectation of $102.19 billion [1] - Greater China revenue was $14.49 billion, below the Street's estimate of $16.43 billion [1] Group 2: Revenue Breakdown - iPhone revenue was $49.03 billion, up 6% year-over-year, but below the consensus of $49.33 billion [2][16] - Mac revenue was $8.73 billion, surpassing the Street's estimate of $8.55 billion [2] - Wearables, home, and accessories revenue reached $9.01 billion, exceeding expectations of around $8.6 billion [2] - Services revenue was $28.75 billion, beating the Street's estimate of $28.18 billion [2][17] Group 3: Analyst Insights - Analysts noted that while the top and bottom lines were acceptable, iPhone sales and China revenue were disappointing [4] - Services growth exceeded expectations, with a projected growth rate of 12-13% going into 2026 [5][19] - The September quarter is typically supply-driven, and the December quarter's commentary will be more critical for future performance [7][10] Group 4: Future Expectations - There is a focus on the upcoming holiday quarter and the performance of the base model iPhone in China [9][10] - Analysts are looking for positive commentary from Tim Cook regarding Apple's AI strategy and its rollout plans for 2026 [14][15] - The company is expected to maintain a consistent growth rate in services, despite earlier concerns about sustainability [19][20]

with those results. Sure. >> Credit beating on the top and bottom lines.Earnings of 80 cents per share, far ahead of expectations of 51 cents per share. Revenues of $585 million ahead of estimates of 546 million. The company also guiding to Q4 revenue and Ebida in ranges ahead of analyst expectations.I just spoke with CEO Steve Huffman, who told me that Reddit's ad business continues to outpace its peers with 74% year-over-year growth and 75% growth in total advertiser count. He said AI is helping across th ...

with those results. Sure. >> Credit beating on the top and bottom lines.Earnings of 80 cents per share, far ahead of expectations of 51 cents per share. Revenues of $585 million ahead of estimates of 546 million. The company also guiding to Q4 revenue and Ebida in ranges ahead of analyst expectations.I just spoke with CEO Steve Huffman, who told me that Reddit's ad business continues to outpace its peers with 74% year-over-year growth and 75% growth in total advertiser count. He said AI is helping across th ...

Reddit projected fourth-quarter sales that beat analysts’ expectations, a sign that its advertising business will continue to grow at a steady clip a year-and-a-half after going public https://t.co/Q5sRkeCPfK ...

The social-media company posted a profit of $162.7 million, driven by higher advertising demand as it continues to draw in more users. ...