Reddit Inc. ( RDDT ) shares are on the rise Wednesday after the company reported strong third-quarter results and provided upbeat revenue guidance. Multiple analysts also lifted price targets following the print. Here’s what you need to know.

What To Know: After the market closed on Tuesday, Reddit ( RDDT ) reported earnings of 16 cents per share for the third quarter, exceeding analyst expectations for a loss of 8 cents per share. The company said revenue reached $348.4 million in the quarter, surpassing the estimate of $311.42 million.

Gross margin improved to 90.1%, up 280 basis points from the prior year. Reddit ( RDDT ) generated $71.6 million in operating cash flow and $70.3 million in free cash flow during the third quarter. Daily active uniques increased 47% year-over-year to 97.2 million.

“It was another strong quarter for Reddit ( RDDT ) and our communities as we achieved important milestones, including new levels of user traffic, revenue growth, and profitability,” said Steve Huffman, co-Founder and CEO of Reddit ( RDDT ). “Reddit continues to be one of the most visited and trusted sites in the world with opportunities available to us that aren’t available to most companies.”

See Also: Reddit ( RDDT ) ‘Remains A Favorite’ For Wall Street After ‘Emphatic Beat And Raise’ In Q3

What’s Next: For the fourth quarter, Reddit ( RDDT ) expects revenue between $385 million and $400 million, versus estimates of $356.716 million. Adjusted EBITDA is expected to be between $110 million and $125 million.

Following Reddit’s quarterly report, several analysts raised price targets. Needham increased its target from $85 to $120, BofA Securities raised its target from $84 to $99, Piper Sandler went from $70 to $115, B. Riley Securities raised its target from $87 to $112 and Roth MKM raised from $89 to $116.

RDDT Price Action: Reddit ( RDDT ) shares were up 42.1% at 116.14 at the time of publication, according to Benzinga Pro.

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