NYSE$RDDT

Reddit Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reddit Inc. reported strong Q3 2024 results, marked by significant user growth, revenue increase, and GAAP profitability.

Reddit Inc. announced its Q3 2024 financial results, demonstrating strong growth with a 68% increase in revenue to $348.4 million. The company achieved GAAP profitability with a net income of $29.9 million. Daily Active Uniques (DAUq) increased by 47% year-over-year, reaching 97.2 million.

  • Revenue increased by 68% year-over-year to $348.4 million.
  • Net income was $29.9 million, a significant improvement from the previous year's net loss of $(7.4) million.
  • Adjusted EBITDA was $94.1 million, compared to $(6.9) million in the prior year.
  • Daily Active Uniques (DAUq) increased 47% year-over-year to 97.2 million.

Headline financials

Total Revenue

$348M

Previous: $208M+67.9%
EPS

$0.16

Previous: -$0.12+233.3%
Global DAUq

97.2M

Previous: 66.0M+47.3%
US DAUq

48.2M

Previous: 32.0M+50.6%
International DAUq

49.0M

Previous: 34.0M+44.1%
Global WAUq

365.4M

No prior period
Global ARPU

$3.58

Previous: $3.14+14.0%
US ARPU

$5.88

Previous: $5.27+11.6%
International ARPU

$1.32

Previous: $1.14+15.8%
Capital Expenditures

-$1.35M

Previous: $3.94M-134.4%
Free Cash Flow

$28.5M

Previous: -$11.6M+344.9%
Net Income

$29.9M

Previous: -$7.38M+504.3%
Operating Income

$6.85M

Previous: -$19.6M+135.0%
Gross Profit

$314M

Previous: $178M+76.4%
R&D Expense

$167M

Previous: $106M+56.8%
Stock-Based Comp

$74.8M

Previous: $9.39M+696.0%

Revenue & EPS history

Reddit Inc · Revenue · Quarterly

$348M

Q3 2024+67.9%vs Q3 2023
Beat estimate in 9 of 9 quarters(100%)
ActualEstimate

Revenue by segment

Reddit Inc · $247M total across 1 segment · Q4 2023

  • Advertising
    $247M

Forward guidance

For the fourth quarter of 2024, Reddit estimates revenue in the range of $385 million to $400 million and Adjusted EBITDA in the range of $110 million to $125 million.

Tailwinds

  • Revenue is expected to be between $385 million and $400 million.
  • Adjusted EBITDA is projected to be between $110 million and $125 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 12 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

+9.0%

Avg return

Earnings day

+9.0%

Avg return

5 days after

+18.8%

Avg return

30 days after

67%

8 / 12 earnings

Positive

+46.0%

Q3 2023

Best reaction

-10.8%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+12.5%+13.1%+19.4%
Q4 2025-7.4%-7.8%-7.7%
Q3 2025+5.3%+1.0%+11.3%
Q2 2025+17.2%+32.5%+40.2%
Q1 2025-4.2%-11.2%-5.4%
Q4 2024-5.3%-13.6%-40.8%
Q3 2023+46.0%+33.4%+72.1%
Q3 2024+45.6%+41.8%+75.8%
Q2 2023+1.1%-3.4%+4.6%
Q2 2024-10.8%-6.9%+3.3%
Q1 2023+1.4%+17.8%+21.1%
Q1 2024+6.5%+10.9%+31.5%
Q4 2023
Q4 2022
Q3 2022
Q2 2022
Q1 2022
Q4 2021
Q3 2021
Q2 2021
Q1 2021
Q4 2020

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