Overview

* Reddit ( RDDT ) Q3 revenue grows 68% yr/yr, beating analyst expectations, per LSEG data

* Net income for Q3 beats analyst estimates, reaching $163 mln

* Adjusted EBITDA for Q3 beats consensus, reaching $236 mln

Outlook

* Company expects Q4 revenue between $655 mln and $665 mln

* Reddit ( RDDT ) forecasts Q4 adjusted EBITDA between $275 mln and $285 mln

Result Drivers

* ADVERTISING REVENUE - Ad revenue grew 74% yr/yr to $549 mln, driving overall revenue growth

* GROSS MARGIN EXPANSION - Gross margin improved by 90 basis points yr/yr to 91%

* NET INCOME GROWTH - Net income improved by $133 mln yr/yr to $163 mln

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $585 mln $545.71

Revenue mln (23

Analysts

)

Q3 EPS Beat $0.80 $0.50

(18

Analysts

)

Q3 Net Beat $163 mln $99.92

Income mln (16

Analysts

)

Q3 Beat $236 mln $195.46

Adjusted mln (22

EBITDA Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 8 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the online services peer group is "buy"

* Wall Street's median 12-month price target for Reddit Inc ( RDDT ) is $242.50, about 13.1% above its October 29 closing price of $210.77

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)