Reddit's Latest Earnings: A Surprise Boost

In a big leap, Reddit's shares surged by 22% in after-hours trading. The reason? The company's third-quarter earnings report was a hit, with profits jumping way higher than expected. Let's break it down. Reddit made 16 cents per share, while people were expecting a loss of 7 cents. That's a big deal. And the revenue? A cool $348. 4 million, beating the estimated $312. 8 million. Reddit's also expecting the fourth quarter to be even better, forecasting revenue between $385 million and $400 million. The company's daily active users grew by 47% from the same time last year, reaching 97. 2 million. That's more than analysts thought, who were predicting 96. 5 million. And each user brought in $3. 58 on average, which is more than the expected $3. 24. Reddit's CEO, Steve Huffman, was happy with these results. He said Reddit hit some big milestones, like more user traffic and better profitability. "Reddit continues to be one of the most visited and trusted sites in the world, " he said. Since going public in March, Reddit's stock value has almost tripled. That's a lot of growth in just a few months. The company's market cap is now a whopping $13. 6 billion. Reddit's been getting a lot of new users from Google's search updates, but these users don't bring in as much advertising money as long-time users. So, Reddit's working on getting these new users to sign up for real. Huffman said the company's own traffic is strong, even if Google's search rules change. Global logged-out users grew by 70% to 53. 1 million, and logged-in users increased by 27% to 44. 1 million. That's a big jump in users.