Reddit, Inc. (NASDAQ:RDDT) shares are trading higher Friday after the company reported better-than-expected second quarter financial results and issued third quarter sales guidance above estimates on Thursday after the market closed.
What To Know: The company reported earnings per share of 45 cents, beating the consensus estimate of 19 cents. In addition, Reddit reported sales of $499.60 million, beating the consensus estimate of $424.73 million and representing a 78% year-over-year jump.
The company attributed the increase to a 84% rise in sales.
Reddit said daily active users rose 21% year-over-year to 110.4 million.
The company posted net income of $89 million compared with a net loss of $10 million a year ago. Gross margin expanded to 90.8%, while adjusted EBITDA reached $167 million, representing 33% of total revenue.
Q3 Outlook: The company sees sales from $535.00 million to $545.00 million, versus the consensus estimate of $471.49 million.
Analyst Changes: Following the earnings report, multiple analysts issued price target adjustments.
- Guggenheim analyst Michael Morris maintained a Buy rating on Reddit and raised the price target from $165 to $215.
- Raymond James analyst Josh Beck reiterated a Strong Buy rating on Reddit and raised the price target from $175 to $225.
- JMP Securities analyst Andrew Boone maintained a Market Outperform rating on Reddit and raised the price target from $180 to $225.
- Piper Sandler analyst Thomas Champion maintained an Overweight rating on Reddit and raised the price target from $150 to $210.
- Morgan Stanley analyst Brian Nowak maintained an Overweight rating on Reddit and raised the price target from $170 to $230.
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RDDT Price Action: At the time of writing, Reddit shares are trading 20.2% higher at $193.04, according to data from Benzinga Pro.
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