Reddit shares jump following strong quarterly results
Reddit reported third-quarter earnings on Thursday that exceeded analyst expectations on both revenue and profit, while also issuing a strong outlook for the current quarter.
Shares of the social media company rose more than 5% in after-hours trading following the announcement, News.Az reports, citing foreign media.
For the quarter, Reddit posted earnings of 80 cents per share, beating the expected 51 cents. Revenue reached $585 million, ahead of the $546 million forecast by LSEG. The company’s sales surged 68% year-over-year, while net income climbed to $163 million, up 23% from $133 million during the same period last year.
Looking ahead, Reddit said it expects fourth-quarter revenue to range between $655 million and $665 million, above Wall Street’s consensus of $638 million.
The company also projected adjusted earnings for the fourth quarter between $275 million and $285 million, surpassing StreetAccount’s estimate of $259 million.
Reddit reported that its global average revenue per user was $5.04 for the third quarter, topping analyst expectations of $4.82.
In the U.S., revenue totaled $480 million, exceeding StreetAccount’s estimate of $445 million, while international revenue reached $105 million, slightly above the projected $104 million.
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