Reddit's Q2 results beat forecasts but shares tumble
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The news: Reddit shares slid in extended trading on the New York Stock Exchange even as the social media platform's second-quarter results beat Wall Street expectations.
The numbers: Shares were down 5.11% to USD51.75 ($79.37) by 8am AEST, having tumbled 4.28% during the day before the earnings announcement.
The San Francisco-based company reported second-quarter revenue of USD281.2 million, more than doubling from USD183.1 million in the previous corresponding period and beating LSEG forecasts of $254 million.
Reddit also narrowed its net loss to USD10.1 million, compared to USD41.1 million a year ago. Adjusted EBITDA was USD39.5 million, swinging from a loss of USD35.4 million.
The number of daily active unique visitors was 91.2 million, up 51% from 60.4 million a year prior.
For the third quarter, Reddit guided revenue between USD290 million and USD310 million, higher than consensus forecasts of USD278.7 million, with expected adjusted EBITDA of USD40 million to USD60 million.
The context: Reddit, which made its NSYE debut in March, saw its shares spike in May after announcing its partnership with OpenAI to bring the social media platform's content to artificial intelligence chatbot ChatGPT.
The platform, which operates more than 100,000 online forums, dubbed "subreddits," was founded by Alexis Ohanian and Steve Huffman, but was acquired by publishing giant Condé Nast in 2006 and then spun out as an independent company in 2011.
What they said: "We had a strong quarter across the board and more people are visiting Reddit than ever before," said Reddit co-founder and CEO Steve Huffman. "Our work to improve the platform is driving results and we are well positioned to continue to grow and deliver on our long term mission."
The source: Reddit earnings release
