Reddit ad revenue rises 74% in Q3 to $549 mn: Report

Reddit, Inc. reported a strong third quarter, driven largely by growth in advertising revenue. Ad revenue rose 74% year-over-year to $549 million, forming the bulk of Reddit’s total revenue of $585 million, which increased 68% from the same period last year.

The platfrom's gross margin expanded to 91%, up 90 basis points year-over-year. Net income reached $163 million, or 28% of revenue, compared with $30 million in the prior year. Adjusted EBITDA rose to $236 million, accounting for 40% of revenue, and operating cash flow improved to $185 million.

Commenting on the report, Steve Huffman, CEO, Reddit, said, “Reddit provides something rare on the Internet. 444 million people come here each week for authentic conversations they can’t find anywhere else, and increasingly, for engagement with brands, institutions and publishers.”

In geographic terms, U.S. revenue totaled $480 million, up 67%, while international revenue increased 74% to $105 million. The platform’s Daily Active Uniques (DAUq) grew 19% year-over-year to 116 million.

The platform ended the quarter with $2.23 billion in cash, cash equivalents, and marketable securities.

Looking ahead, the platform projects fourth-quarter revenue between $655 million and $665 million and adjusted EBITDA between $275 million and $285 million, citing continued advertiser demand and engagement growth on the platform.