Reddit's stock saw a dramatic increase, climbing nearly 40% to $113.94. This marks the company's largest jump since March, driven by better-than-expected third-quarter results and a positive forecast for the coming quarter.
In the third quarter, Reddit reported a revenue rise of 67.9% year-over-year, reaching $348.4 million, exceeding analyst predictions of $312.8 million. Earnings per share came in at 16 cents, surprising analysts who anticipated a loss of 7 cents per share. Additionally, Reddit achieved a net profit of $29.9 million, a significant turnaround from the previous year's net loss of $7.4 million.
Looking ahead, Reddit projects fourth-quarter revenue to range between $385 million and $400 million, surpassing the average analyst expectation of $357.9 million. The company also anticipates adjusted earnings for the fourth quarter to be between $110 million and $125 million, which is well above the average forecast of $85.2 million.
