Reddit shares jump as much as 20% on second-quarter sales and guidance beat

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 revenue grew 78% year-over-year in the second quarter and was 17% above consensus estimates, 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 earnings in the third quarter are 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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