July 31 (Reuters) - Reddit ( RDDT ) forecast

third-quarter revenue above Wall Street estimates on Thursday,

betting on growing digital advertising driven by its artificial

intelligence-powered marketing tools.

The forecast follows bigger rival Meta's upbeat

second-quarter results and strong revenue outlook on Wednesday,

lifted by the Facebook and Instagram parent's core ad business.

Advertisers are increasingly turning to platforms such as

Reddit ( RDDT ), Meta, and TikTok, which offer advanced

AI-powered tools for automated ad creation, precise audience

targeting and access to fast-growing user bases.

Reddit ( RDDT ) offers marketers various ad formats, including

conversation placement ads, which allows brands to advertise

directly within discussion threads in its interest-based

communities known as subreddits.

The San Francisco, California-based company last month

launched two new AI-powered ad features designed to help brands

drive engagement by tapping into user conversations on the

platform.

Reddit ( RDDT ) expects third-quarter revenue of $535 million to $545

million, well above analysts' average estimate of $473 million,

according to data compiled by LSEG.

Second quarter revenue rose 78% to $500 million, beating

estimates of $426 million.

Daily active unique visitors increased 21% to 110.4 million

in the quarter ended June 30, while global average revenue per

user jumped 47% to $4.53, the company said.