Reddit beats second-quarter revenue and EBITDA guidance
The social media platform reported revenue of $805 million, exceeding its previous guidance range of $715 million to $725 million.
Reddit (RDDT), the social media platform, reported second-quarter revenue of $805 million. The result exceeded the company's previously provided guidance range of $715 million to $725 million.
Revenue grew 61% year-over-year, though this represented a deceleration from the 69% growth reported in the first quarter of 2024. Net income more than doubled from the prior year to $253 million.
Growth was driven by a combination of user expansion and higher monetization. Daily active uniques increased 18% year-over-year to 130.3 million, while weekly active uniques rose 24% to 514.6 million. Global average revenue per user increased 36% year-over-year to $6.18.
International markets outpaced domestic growth, with international revenue rising 84% year-over-year to $167 million. For comparison, U.S. revenue grew 56% to $638 million. U.S. ARPU rose 51% to $11.85, while international ARPU increased 31% to $2.26.
Adjusted EBITDA reached $343 million, surpassing the guidance range of $285 million to $295 million. The adjusted EBITDA margin expanded to 42.6% from 33.4% in the prior year, though it declined sequentially from 45.1% in the fourth quarter of 2023 and 40.1% in the first quarter of 2024. Gross margin rose 50 basis points year-over-year to 91.3%, continuing a downward trend from 91.9% in late 2023.
Reddit estimated third-quarter revenue in the range of $860 million to $870 million. The company expects adjusted EBITDA for the period to be between $385 million and $395 million.
The company repurchased 1.5 million shares of Class A common stock for $235 million during the quarter. Reddit also reached a milestone of $1 million in revenue per employee, up from $654,000 in the prior quarter.