Summary by Moomoo AI
Reddit delivered strong financial results for Q3 2024, with revenue jumping 68% year-over-year to $348.4 million, marking its first quarterly profit of $29.9 million. Daily Active Uniques (DAUq) grew 47% to 97.2 million users, while Average Revenue per Unique (ARPU) increased 14% to $3.58. The growth was primarily driven by increased advertising impressions and data licensing agreements.The company demonstrated improved operational efficiency with gross margin expanding to 90.1% from 87.3% in Q3 2023. Operating expenses rose to $306.9 million compared to $200.7 million last year, largely due to higher stock-based compensation expenses post-IPO. The company maintained a strong liquidity position with $1.7 billion in cash and marketable securities as of September 30, 2024.Looking ahead, Reddit continues to focus on international expansion and new revenue streams, including data licensing and user monetization initiatives. However, the company faces ongoing challenges in converting logged-out users, who comprised 75% of incremental users added since July 2023 and typically generate lower monetization. Management remains committed to investing in product improvements and innovations despite potential near-term volatility in growth rates.
