2 weeks Ago
Reddit share price jumped more than 24% in extended trading on Tuesday after the company reported its first quarterly profit, while its fourth-quarter revenue forecast beat estimates. Reddit stock price ended 2.59% higher at $81.
74 and surged 24.79% to $102 after-market hours. The company reported a profit per share of 16 cents for the third quarter ended September 2024, compared with a loss of 13 cents in the year-ago quarter.
Analysts, on average, had expected a loss of 7 cents per share. Revenue in the September quarter rose 68% to $348.4 million, beating analysts’ estimate of $312.
8 million, Reuters reported. Reddit ’s daily active unique visitors increased 47% to 97.2 million in Q3, while its global average revenue per user (ARPU) increased 14% to $3.
58. The company expects its revenue to be between $385 million and $400 million in the fourth quarter, compared with analysts’ average estimate of $357.9 million, according to data compiled by LSEG.
In 2025, the company will be modernizing its search products with improved results page, autocomplete features and integration of large language models to make search results better, CEO Steve Huffman said on a post-earnings call. Reddit's results, its third after going public in March, stoke confidence that more advertisers are turning to the platform, driven by initiatives including translation into other languages by using machine learning to tap new users. (With inputs from Reuters).
