Reddit CEO Steve Huffman hugs mascot Snoo as Reddit begins trading on the New York Stock Exchange on March 21, 2024.
Reddit shares jumped as much as 20% after the company reported second-quarter earnings on Thursday that beat on sales and guidance.
Here's how the company did compared with LSEG estimates:
Earnings per share: 45 cents vs. 19 cents expected
45 cents vs. 19 cents expected Revenue: $500 million vs. $426 million expected
Reddit's sales grew 78% year-over-year in the second quarter and was 17% above consensus estimates, representing the biggest beat in its short history as a public company. Net income came in at $89 million in the second quarter, compared with a net loss of $10 million in the second quarter of last year due to costs associated with its IPO.
The company said third-quarter revenue will be in the range of $535 million to $545 million, ahead of Wall Street estimates of $473 million.
Adjusted EBITDA in the third quarter is projected to be in between $185 million to $195 million, ahead of StreetAccount's estimates of $160 million.
Reddit said global daily active users for the quarter grew 21% year-over-year to 110.4 million, ahead of analyst estimates of 109 million.
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