Reddit reports better-than-expected results for second quarter as digital ad market improves
-Reddit reported earnings for the second time as a public company.
-Revenue topped analysts’ estimates, and the company’s loss was narrower than analysts expected.
-The company is getting a boost from data-licensing revenue on top of its advertising business.
-Revenue topped analysts’ estimates, and the company’s loss was narrower than analysts expected.
-The company is getting a boost from data-licensing revenue on top of its advertising business.
Reddit reported second-quarter results on Tuesday that topped analysts’ estimates.
Here’s how the company did compared to LSEG estimates:
Loss per share: 6 cents vs. a loss of 33 cents
Revenue: $281 million vs. $254 million expected
Here’s how the company did compared to LSEG estimates:
Loss per share: 6 cents vs. a loss of 33 cents
Revenue: $281 million vs. $254 million expected
Sales in the second quarter rose 54% from a year earlier. The company’s net loss narrowed to $10.1 million from $41.1 million in the same quarter a year earlier.
Online advertising revenue climbed 41% from a year prior to $253.1 million. The digital ad market is continuing to recover from a tough 2022, when businesses pulled back on promotional spending because of inflation and other factors.
Reddit’s “other revenue” which includes the company’s data licensing business, rose 691% to $28.1 million.
Reddit said it expects third-quarter sales of $290 million to $310 million. Analysts were expecting $278.7 million.
The company said its average revenue per user was $3.08 in the second quarter, topping analysts’ estimates of $3.02. The number of daily active users rose 51% year over year to 91.2 million, topping analysts’ estimates of 84.5 million, according to FactSet.
Online advertising revenue climbed 41% from a year prior to $253.1 million. The digital ad market is continuing to recover from a tough 2022, when businesses pulled back on promotional spending because of inflation and other factors.
Reddit’s “other revenue” which includes the company’s data licensing business, rose 691% to $28.1 million.
Reddit said it expects third-quarter sales of $290 million to $310 million. Analysts were expecting $278.7 million.
The company said its average revenue per user was $3.08 in the second quarter, topping analysts’ estimates of $3.02. The number of daily active users rose 51% year over year to 91.2 million, topping analysts’ estimates of 84.5 million, according to FactSet.
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