Reddit Q2 Earnings: Revenue Beat, EPS Beat, Strong Guidance Drives Shares Higher

Reddit Inc RDDT reported financial results for the second quarter on after the bell. Here’s a rundown of the report.

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Q2 Earnings: Reddit reported second-quarter revenue of $499.6 million, beating the consensus estimate of $424.73 million, according to Benzinga Pro. The company reported second-quarter earnings of 48 cents per share, beating analyst estimates of 19 cents per share.

Total revenue climbed 78% on a year-over-year basis as daily active unique (DAUq) users increased 21% year-over-year to 110.4 million. U.S. DAUq grew 11% year-over-year and International DAUq increased 32%.

Reddit generated operating cash flow of $111 million and free cash flow of $111 million in the quarter. The company ended the quarter with $2.06 billion in cash and cash equivalents.

“With 20+ years of conversations across 100,000+ communities, Reddit is the internet's largest archive of authentic dialogue, powering how people learn and decide and helping brands understand their audience and build better products,” the company said in a letter to shareholders.

“This same depth and breadth of human conversation also powers AI and leading large language models, making Reddit foundational to the next generation of technology.”

Guidance: Reddit expects third-quarter revenue to be in the range of $535 million to $545 million versus estimates of $471.49 million. The company anticipates third-quarter adjusted EBITDA of $185 million to $195 million.

Reddit’s management team will discuss the quarter on an earnings call with investors and analysts at 5 p.m. ET.

RDDT Price Action: Reddit shares were up 15.03% in after-hours, trading at $184.72 at the time of publication on Thursday, according to Benzinga Pro.

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