Reddit Reports Q2 Revenue Up 61% YoY to $805M But Shares Fall 11%
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Reddit reported second-quarter earnings that beat on the top and bottom lines, with revenue up 61% year-over-year to $805 million, surpassing estimates of $730 million. Despite this strong performance, the company's shares fell 11% due to concerns over 'choppy' search referrals and the lack of new data licensing agreements for the upcoming quarter.
The company also projected revenue for the third quarter that exceeded Wall Street estimates. However, uncertainty regarding its relationship with Google and the impact of AI on search referrals has raised market concerns, contributing to the decline in stock price after the earnings announcement.
Sources
Every quote below is verbatim from the article it is attributed to.
“Reddit Inc. projected revenue in the current quarter revenue that beat Wall Street estimates, but shares fell after the social media company failed to announce any new data licensing agreements.”
Bloomberg — Reddit Projects Strong Sales, But No New AI Deals“Reddit reported second-quarter earnings that beat on the top and the bottom, and gave a revenue forecast that topped estimates.”
CNBC — Reddit shares sink 11% on 'choppy' search referrals even as results blow past estimates“Jonathan Vanian / CNBC: Reddit reports Q2 revenue up 61% YoY to $805M, vs.”
techmeme — Reddit reports Q2 revenue up 61% YoY to $805M, vs. $730M est., forecasts Q3 revenue above est., says search referrals were "choppy"; RDDT drops 6%+ after hours (Jonathan Vanian/CNBC)
“Reddit's financial situation is looking good but uncertainty about its relationship to Google and the new AI-ified web are stirring market concerns.”
TechCrunch — Reddit reports a solid quarter but shows signs of AI’s impact
“On Thursday, Reddit stock fell despite the social media company posting Q2 results ahead of earnings sand sales estimates.”
IBD — Reddit Beats Earnings Estimates With 61% Sales Growth But Stock Falls Late
Earlier versions
- Jul 30, 9:17 PM — Reddit Reports Q2 Revenue Up 61% YoY to $805M But Shares Fall 7% (3/3)