Reddit shares soar 22% on earnings beat and better-than-expected forecast
Reddit reported third-quarter results that exceeded analysts' estimates and gave a forecast for the current period that was well ahead of estimates.
Reddit shares jumped 22% in extended trading Tuesday, topping $100 for the first time, after the social media company reported third-quarter results that topped analyst estimates and issued an optimistic forecast for the current period.
Here's how the company did compared with LSEG estimates:
Earnings per share: 16 cents vs. a loss of 7 cents expected
Revenue: $348.4 million vs. $312.8 million expected
Reddit said fourth-quarter revenue will be between $385 million and $400 million, beating the average analyst estimate of $357.9 million. Adjusted earnings for the fourth quarter will be in the range of $110 million to $125 million, higher than the $85.2 million average estimate.
Revenue in the third quarter jumped 68% from a year earlier, and the company turned profitable, reporting net income of $29.9 million, compared with a net loss of $7.4 million during the same quarter a year ago.
The company said that its daily active users grew 47% year over year in the third quarter to 97.2 million, better than analyst estimates of 96.5 million.
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