SAN FRANCISCO - Reddit, Inc. (NYSE: RDDT) reported better-than-expected second quarter results on Tuesday, as revenue jumped 54% YoY to $281.2 million, surpassing analyst estimates of $253.6 million. The social media platform also posted a narrower loss per share of $0.06, beating expectations for a $0.33 loss.
The company's strong performance was driven by significant user growth, with daily active unique users (DAUq) increasing 51% YoY to 91.2 million. Weekly active unique users (WAUq) saw an even larger jump, rising 57% to 342.3 million.
"We had a strong quarter across the board and more people are visiting Reddit than ever before," said Steve Huffman, Co-Founder and CEO of Reddit. "Our work to improve the platform is driving results and we are well positioned to continue to grow and deliver on our long term mission."
Reddit's advertising revenue grew 41% YoY to $253.1 million, while other revenue surged 691% to $28.1 million. The company's gross margin improved to 89.5%, up 530 basis points from the prior year.
Net loss narrowed to $10.1 million from $41.1 million a year ago. Adjusted EBITDA turned positive at $39.5 million, compared to a loss of $35.4 million in Q2 2023.
For the third quarter, Reddit expects revenue between $290 million and $310 million, with adjusted EBITDA of $40 million to $60 million.
The stock edged up 0.4% in after-hours trading following the earnings release.
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