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Reddit shares rise on earnings beat, strong forecast

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Reddit CEO Steve Huffman stands on the floor of the New York Stock Exchange (NYSE) after ringing a bell on the floor setting the share price at $47 in its initial public offering (IPO) on March 21, 2024 in New York City.

Reddit reported third-quarter earnings on Thursday in which the company beat on the top and bottom and provided strong guidance.

Shares were up more than 6% in after-hours trading on Thursday.

Here's how the company did compared with LSEG estimates:

Earnings per share: 80 cents vs. 51 cents expected

80 cents vs. 51 cents expected Revenue: $585 million vs. $546 million expected

Reddit's sales jumped 68% year-over-year in the third quarter, while net income was $163 million, representing a 23% increase from the $133 million it logged the previous year during the same period.

The company said it expects fourth-quarter sales to come in the range of $655 million to $665 million, ahead of the $638 million that Wall Street was expecting.

Reddit said it expects its adjusted earnings in the fourth quarter to be between $275 million and $285 million, topping StreetAccount's projections of $259 million.

The company said third-quarter global average revenue per user was $5.04, ahead of analyst estimates of $4.82.

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