Reddit, Inc. (NYSE:RDDT) reported its third-quarter results after Tuesday's closing bell. Here's a look at the details from the report.
The Details: Reddit reported quarterly earnings of 16 cents per share, which beat the analyst consensus estimate for losses of 8 cents. Quarterly revenue came in at $348.4 million, which beat the consensus estimate of $311.42 million.
- Daily Active Uniques (DAUq) increased 47% year-over-year to 97.2 million.
- Gross margin was 90.1%, an improvement of 280 basis points from the prior year.
- Net income was $29.9 million, as compared to net loss of $7.4 million in the prior year.
- Adjusted EBITDA was $94.1 million, as compared to a loss of $6.9 million in the prior year.
- Operating cash flow was $71.6 million, an improvement of $79.3 million from the prior year.
- Free Cash Flow was $70.3 million and capital expenditures were $1.4 million, less than 1% of revenue.
"It was another strong quarter for Reddit and our communities as we achieved important milestones, including new levels of user traffic, revenue growth, and profitability," said Steve Huffman, CEO of Reddit. "Reddit continues to be one of the most visited and trusted sites in the world with opportunities available to us that aren't available to most companies."
Outlook: Reddit sees fourth-quarter revenue in a range of $385 million to $400 million, versus the $356.716 million estimate. The company expects adjusted EBITDA of between $110 million and $125 million for the fourth quarter.
RDDT Price Action: According to Benzinga Pro, Reddit shares are up 17.45% after-hours at $96 at the time of publication Tuesday.
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