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Reddit Surges Past Earnings, Stock Dips
30 Jul
Summary
- Reddit's Q2 revenue grew 61% year-over-year to $805 million.
- Net income nearly tripled, surpassing analyst expectations.
- Weekly active users surpassed half a billion for the first time.
Reddit Inc. announced its second-quarter financial results, showcasing significant year-over-year growth. Total revenue reached $805 million, a 61% increase, exceeding analyst consensus. The company's net income nearly tripled to $253 million, or $1.25 per diluted share, from $89 million in the previous year.
The advertising segment was a primary driver, with revenue up 64% to $762 million. International markets also showed strong performance, with overseas revenue soaring 84%. The platform experienced substantial user growth, with weekly active uniques jumping 24% to 514.6 million, marking a new milestone.
Operational efficiency improved, reflected in a gross margin of 91.3% and adjusted EBITDA more than doubling to $343 million. Looking forward, Reddit projects third-quarter revenue between $860 million and $870 million, also surpassing expectations.
