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.shares jumped 22% in extended trading Tuesday, topping $100 for the first time, after the social media company reported third-quarter results that topped analyst estimates and issued an optimistic forecast for the current period.Sign up for NBC Philadelphia's News Headlines newsletter.

Reddit said fourth-quarter revenue will be between $385 million and $400 million, beating the average analyst estimate of $357.9 million. Adjusted earnings for the fourth quarter will be in the range of $110 million to $125 million, higher than the $85.2 million average estimate. 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.

Reddit is trying to get logged-out users to sign up to the service and is making it easier for them to do so, HuffmanThe 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.Donald Trump

 

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Reddit shares soar 22% on earnings beat and better-than-expected forecastReddit reported third-quarter results that exceeded analysts' estimates and gave a forecast for the current period that was well ahead of estimates.
Source: CNBC - 🏆 12. / 72 Read more »