Reddit shares soar 22% on earnings beat and better-than-expected forecast

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Reddit reported third-quarter results that exceeded analysts' estimates and gave a forecast for the current period that was well ahead of estimates.

Reddit CEO Steve Huffman told CNBC in August that the company has been making it easier for new users to create accounts.Reddit CEO Steve Huffman stands on the floor of the New York Stock Exchange after ringing a bell on the floor setting the share price at $47 in its initial public offering on March 21, 2024 in New York City.

Revenue in the third quarter jumped 68% from a year earlier, and the company turned profitable, reporting net income of $29.9 million, compared with a net loss of $7.4 million during the same quarter a year ago. The company said that its daily active users grew 47% year over year in the third quarter to 97.2 million, better than analyst estimates of 96.5 million."It was another strong quarter for Reddit and our communities as we achieved important milestones, including new levels of user traffic, revenue growth, and profitability," Reddit CEO Steve Huffman said in a statement.

The company said global logged-out users grew 70% from a year earlier to 53.1 million, while global logged-in users increased 27% to 44.1 million.

 

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