By Jaspreet Singh<\/p>\n
(Reuters) -Reddit forecast third-quarter revenue above Wall Street estimates on Thursday, betting on growing digital advertising driven by its artificial intelligence-powered marketing tools.<\/p>\n
Shares of the company, which went public in March last year, rose more than 10% in extended trading.<\/p>\n
The forecast follows bigger rival Meta’s upbeat second-quarter results and strong revenue outlook on Wednesday, lifted by the Facebook and Instagram parent’s core ad business.<\/p>\n
Advertisers are increasingly turning to platforms such as Reddit, Meta, and TikTok, which offer advanced AI-powered tools for automated ad creation, precise audience targeting and access to fast-growing user bases.<\/p>\n
Reddit offers marketers various ad formats, including conversation placement ads, which allow brands to advertise directly within discussion threads in its interest-based communities known as subreddits.<\/p>\n
The San Francisco, California-based company last month launched two new AI-powered ad features designed to help brands drive engagement by tapping into user conversations on the platform.<\/p>\n
“Reddit just turned in a quarter that would make even its harshest subreddit proud,” Emarketer analyst Jeremy Goldman said.<\/p>\n
The company expects third-quarter revenue of $535 million to $545 million, well above analysts\u2019 average estimate of $473 million, according to data compiled by LSEG.<\/p>\n
It projected quarterly adjusted earnings before interest, taxes, depreciation, and amortization of $185 million to $195 million, compared with estimates of $160.4 million.<\/p>\n
Second quarter revenue rose 78% to $500 million, beating estimates of $426 million. Its profit came in at 45 cents per share, topping expectations of 19 cents.<\/p>\n
Reddit said its machine translation feature now supports 23 languages, helping fuel user growth across Asia Pacific, Europe and Latin America.<\/p>\n
Daily active unique visitors increased 21% to 110.4 million in the quarter ended June 30, while global average revenue per user jumped 47% to $4.53, the company said.<\/p>\n
(Reporting by Jaspreet Singh in Bengaluru; Editing by Tasim Zahid)<\/p>\n","protected":false},"excerpt":{"rendered":"By Jaspreet Singh (Reuters) -Reddit forecast third-quarter revenue above Wall Street estimates on Thursday, betting on growing digital…\n","protected":false},"author":3,"featured_media":108496,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[69191,691,738,54688,213,158,67,132,68,69192],"class_list":{"0":"post-108495","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ad-formats","9":"tag-ai","10":"tag-artificial-intelligence","11":"tag-digital-advertising","12":"tag-reddit","13":"tag-technology","14":"tag-united-states","15":"tag-unitedstates","16":"tag-us","17":"tag-wall-street-estimates"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/114949867593270665","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/108495","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=108495"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/108495\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/108496"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=108495"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=108495"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=108495"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}