Reddit stock surges 10% after Q3 revenue came in 68% higher to $585 m and EPS hits $0.80

Reddit just flipped the switch on Wall Street’s ￰0￱ Thursday, the company posted third-quarter results that wiped the floor with every ￰1￱ jumped 68% year-over-year to $585 million, while earnings per share landed at $0.80, blowing past the $0.51 ￰2￱ immediately shot up more than 8% in after-hours trading, and by Friday morning, the stock was up 10%. And folks, this is Reddit’s cleanest beat yet since going ￰3￱ income came in at $163 million, up from $133 million during the same period last year, a 23% ￰4￱ company also raised its Q4 ￰5￱ expects revenue between $655 million and $665 million, comfortably above the Street’s $638 million ￰6￱ earnings guidance for Q4 is now $275 million to $285 million, outpacing projections of $259 ￰7￱ wasn’t a “beat by a little” ￰8￱ slapped expectations off the ￰9￱ boosts revenue from users and licensing, but ￰10￱ weakens During Q3, average global revenue per user hit $5.04, higher than the $4.82 ￰11￱ U.

S. market, Reddit’s biggest money-maker, brought in $480 million, topping StreetAccount’s $445 million ￰12￱ sales also edged past expectations at $105 million, versus the $104 million analysts ￰13￱ from “Other” sources, which includes data licensing, rose 7% year-over-year to $36 million. That’s the category where Reddit counts big names like Google and OpenAI as ￰14￱ segment is getting a lot more attention as tech firms chase Reddit’s real-time, human-made content to train AI ￰15￱ daily active users (uniques) reached 116 million, a 19% increase compared to last ￰16￱ were only expecting 114 ￰17￱ logged-in DAUq globally rose 14% to 50.2 million, and logged-out DAUq surged 24% to 65.8 ￰18￱ it wasn’t all ￰19￱ the U.

S., logged-in DAUq only grew 7% to 23.1 million. That’s slower than Q2’s 12% growth, and it’s the fifth straight quarter ￰20￱ growth has ￰21￱ Steve Huffman spoke about traffic patterns during the earnings ￰22￱ said Reddit isn’t getting much boost from AI-powered chat tools like those popping up from Google or OpenAI. “I’m looking forward to continuing to work on these things with these partners, but they’re not a major traffic driver today,” Steve said. Still, he believes “there’s plenty of opportunity” ￰23￱ leans into marketing as it pushes for more sign-ups Steve also talked about getting more people to create ￰24￱ said Reddit is focused on improving the user experience and removing barriers that keep people from seeing relevant content.

“The biggest driver of retention is following subreddits that are relevant to your interests,” Steve said. “It’s not rocket science.” COO Jen Wong said Reddit is now spending more on performance-marketing campaigns, especially in countries where it’s still new and less known. “We saw an increase in Reddit app installs as a result of a brand campaign, which I think is good,” she ￰25￱ added that there were gains in brand awareness and consideration, and said that’ll help build performance ￰26￱ Google and Meta also beat earnings expectations this week, Reddit’s report stood out for how far it beat both revenue and profit targets, and for how clearly it admitted ￰27￱ growth is starting to level ￰28￱ globally, Reddit is clearly still expanding its footprint, especially by squeezing more value out of its users and its massive data ￰29￱ up to $30,050 in trading rewards when you join Bybit today