Reddit Shares Tumble Despite Q2 Earnings, Revenue Beats
Reddit Inc. (NYSE:RDDT) posted its second-quarter results after Thursday’s closing bell. Shares moved lower as investors appeared unimpressed by the double-beat report. Here’s a look at the details.
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Reddit Q2 Details
Reddit reported quarterly earnings of $1.25 per share, which beat the consensus estimate of 95 cents by 31.58%, according to Benzinga Pro data.
Quarterly revenue came in at $804.91 million, which beat the Street estimate of $730.26 million and was up from $499.6 million in the same period last year.
Reddit reported the following second-quarter metrics:
- Daily Active Uniques (DAUq) increased 18% year-over-year to 130.3 million
- Weekly Active Uniques (WAUq) increased 24% year-over-year to 514.6 million, crossing half a billion
- Gross margin was 91.3%, as compared to 90.8% in the prior year, up 50 bps year-over-year
- Adj. EBITDA of $343 million, 43% of revenue, up 106% year-over-year
- Operating cash flow of $262 million, 33% of revenue, up 135% year-over-year
“In an increasingly automated web, the value of real human perspective has never been higher. Reddit’s commercial momentum reflects that,” said Steve Huffman, founder and CEO of Reddit.
“Crossing $1 million in revenue per employee and maintaining eight consecutive quarters of over 60% revenue growth shows the strength of our community model and the value we deliver to advertisers,” Huffman added.
RDDT Stock Price Activity: According to data from Benzinga Pro, Reddit stock was down 5.09% to $168.97 in Thursday’s extended trading.
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