Social media company Reddit (RDDT) has reported second-quarter financial results that beat analysts’ forecasts on both the top and bottom lines.
The San Franciso-based company, which runs online message boards, announced a loss per share of $0.06 U.S., which was much better than a loss of $0.33 U.S. that had been expected.
Revenue of $281 million U.S. topped Wall Street forecasts of $254 million U.S. Sales were up 54% from a year earlier due to a sharp rise in online advertising on Reddit’s platform.
The company, which is best known for the “WallStreetBets” message board, announced that its online advertising revenue increased 41% from a year ago to $253.1 million U.S.
Reddit makes nearly all its revenue from online advertising on its platform and is benefitting as the digital ad market rebounds after businesses pulled back their spending amid high inflation.
Reddit’s “other revenue’ segment, which includes data licenses, rose 691% to $28.1 million U.S. during Q2.
The company added that its average revenue per user was $3.08 U.S. during Q2, beating consensus estimates of $3.02 U.S.
The number of daily active users on Reddit’s message boards rose 51% year-over-year to 91.2 million, topping forecasts of 84.5 million.
Looking forward, Reddit said that it expects third-quarter revenue of $290 million U.S. to $310 million U.S. That too is above Wall Street forecasts of $278.7 million U.S.
This was Reddit’s second quarterly earnings report after the company held its initial public offering (IPO) in March of this year.
Since going public, Reddit’s stock has risen 18% and currently trades at $54.36 U.S. per share.
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