Reddit, Inc. Class A ( (RDDT) ) has realeased its Q3 earnings. Here is a breakdown of the information Reddit, Inc. Class A presented to its investors.
Reddit, Inc. operates as a leading online platform fostering community engagement and conversation, primarily in the technology and social media industry. Known for its vast array of user-generated forums, Reddit remains a highly interactive space for users worldwide.
In Reddit’s third quarter of 2024, the company announced a significant 68% revenue increase, reaching $348.4 million, alongside a notable rise in daily active uniques (DAUq) by 47% to 97.2 million. For the first time, Reddit achieved GAAP profitability with a net income of $29.9 million and a net margin of 8.6%.
Reddit’s financial success is further highlighted by an impressive adjusted EBITDA of $94.1 million, with a margin of 27.0%. The company also recorded a positive operating cash flow of $71.6 million and a free cash flow of $70.3 million, demonstrating strong operational efficiency. The growth was driven by a 56% increase in ad revenue to $315.1 million, and a substantial 547% rise in other revenue to $33.2 million.
As Reddit continues to expand its global reach, its user engagement metrics signal robust growth potential. With a gross margin of 90.1% and a significant improvement over the previous year’s losses, Reddit showcases its ability to leverage its platform profitability.
Looking ahead, Reddit’s management remains optimistic, projecting fourth-quarter revenue between $385 million and $400 million, with adjusted EBITDA ranging from $110 million to $125 million. This outlook indicates confidence in sustained growth and operational strength moving forward.
