Reddit Reports 53% Revenue Growth Amid Declining U.S. Daily Active Users
Reddit (RDDT) reported third-quarter revenue of $895 million, a 53% increase year-over-year, driven largely by higher monetization per user. Despite the top-line growth and a significant 74% jump in net income to $283 million, shares fell approximately 10% in after-hours trading due to concerns regarding its core market. In the United States, daily active unique users declined by 2% to 50.7 million, with logged-out traffic falling by 4%. While Reddit successfully increased its U.S. average revenue per unique user to $13.82, all new user growth this quarter originated from international markets. This shift presents a challenge as international users currently generate significantly less revenue per capita than their U.S. counterparts.
Tickers: $RDDT
Topics: After-hours Trading Net Income Revenue Growth User Metrics
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Part of the story Reddit Shares Face Volatility Amid Strong Revenue Growth and Search Traffic Concerns (2 articles)