Reddit shares jumped 22% in extended trading Tuesday, topping $100 for the first time, after the social media company reported third-quarter results that topped analyst estimates and issued an optimistic forecast for the current period.
Adjusted earnings for the fourth quarter will be in the range of $110 million to $125 million, higher than the $85.2 million average estimate.
The company said that its daily active users grew 47% year over year in the third quarter to 97.2 million, better than analyst estimates of 96.5 million.
Average revenue per user was $3.58 for the third quarter, which beat analyst estimates of $3.24.
The company said global logged-out users grew 70% from a year earlier to 53.1 million, while global logged-in users increased 27% to 44.1 million.
Following the social media company’s release of third-quarter results that exceeded analyst expectations and provided an optimistic outlook for the current period, Reddit shares surged 22% during extended trading on Tuesday, briefly surpassing $100.
The company’s performance in comparison to the LSEG estimates is as follows.
16 cents per share in earnings compared to… a seven-cent loss anticipated.
Revenue: $348.4 million as opposed to… Expected: $312 million to $8 million.
Revenue for the fourth quarter is expected to be between $385 million and $400 million, according to Reddit, exceeding the average analyst estimate of $357.9 million. Adjusted earnings for the fourth quarter will surpass the average estimate of $85 million by a range of $110 million to $125 million.
The company reported a net income of $29.9 million for the third quarter, up 68 percent from the same period last year, while the same quarter last year saw a net loss of $7.4 million.
The company reported that, in the third quarter, its daily active users increased 47 percent year over year to 97.2 million, exceeding analyst estimates of 96.5 million.
In comparison to analyst estimates of $3.24, the average revenue per user for the third quarter was $3.58.
Reddit CEO Steve Huffman said in a statement, “We attained significant milestones, including new levels of user traffic, revenue growth, and profitability, making it another strong quarter for Reddit and our communities.”. Reddit is still one of the most popular and reliable websites in the world, and we have access to opportunities that most businesses don’t have. “”.
Since going public in March, Reddit has released three earnings reports. According to the after-hours pop, the stock’s value has nearly tripled since its initial public offering. Reddit’s market value at the close was $13 and a half billion.
Global logged-in users increased by 27% to 44 million, while global logged-out users increased by 70% to 53 million, according to the company.
