Reddit Inc. (NYSE:RDDT) shares climbed after the company released its third-quarter earnings report after Thursday's closing bell, beating estimates on the top and bottom lines.
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The Details: Reddit reported quarterly earnings of 80 cents per share, which beat the analyst estimate of 52 cents by 55%.
Quarterly revenue came in at $585 million, which beat the analyst consensus estimate of $545.71 million by 7.2%.
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Reddit reported the following third quarter highlights:
- Daily Active Uniques (DAUq) increased 19% year-over-year to 116 million
- Ad revenue increased 74% year-over-year to $549 million.
- Other revenue increased 7% year-over-year to $36 million
- Gross margin was 91%, an improvement of 90 basis points from the prior year
- Adjusted EBITDA was $236 million, an improvement of $142 million from the prior year
- Operating cash flow was $185 million, an improvement of $114 million from the prior year
- Free Cash Flow was $183 million, an improvement of $113 million from the prior year
“Reddit provides something rare on the Internet,” said Steve Huffman, Reddit CEO.
“444 million people come here each week for authentic conversations they can’t find anywhere else, and increasingly, for engagement with brands, institutions and publishers,” Huffman added.
Outlook: Reddit sees fourth-quarter revenue in a range of $655 million to $665 million, versus the $637.88 million analyst estimate.
RDDT Stock Price: According to data from Benzinga Pro, Reddit stock was up 5.20% at $204.53 in Thursday's extended trading.
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