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 Street Account’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.
The company said second-quarter global average revenue per user was $4.53, topping analyst estimates of $3.90.
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Reddit’s second-quarter sales in the U.S. were $409 million, ahead of Street Account estimates of $335 million. International revenue was $91 million in the quarter, compared with $89 million
The company’s second-quarter global logged-in DAUq rose 17% year over year to 49.3 million, while its global logged-out DAUq jumped 24% to 61.1 million.
Reddit CEO Steve Huffman said in a letter to shareholders that the company’s AI-powered Reddit Answers tool, which debuted in December, now has 6 million weekly users, up from 1 million last quarter. Reddit Answers will expand globally and the company will be “integrating it more deeply into the core search experience, and making search a central feature across Reddit,” Huffman wrote in the letter.
