Reddit The company reported second-quarter results on Tuesday that beat analyst expectations.
Here’s how the company performed compared to LSEG’s forecasts:
- Loss per share: 6 cents vs. 33 cents loss
- Revenue: $281 million vs. $254 million estimate
Second-quarter sales increased 54% compared to the same period last year. Net loss narrowed to $10.1 million from $41.1 million in the same period last year.
Online advertising revenue increased 41% year-on-year to $253.1 million. The digital advertising market continues to recover from a tough 2022, when inflation and other factors caused companies to cut promotional spending.
Reddit’s “other revenue,” which includes the company’s data licensing business, increased 691% to $28.1 million.
Reddit said it expects third-quarter revenue of $290 million to $310 million. Analysts were expecting $278.7 million.
The company said its average revenue per user in the second quarter was $3.08, beating analysts’ expectations of $3.02. Its daily active users rose 51% year over year to 91.2 million, beating analysts’ expectations of 84.5 million, according to FactSet.
This is Reddit’s second quarterly earnings report since it went public on the New York Stock Exchange in March.
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