Reddit reports better-than-expected results for second quarter as digital ad market improves

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Reddit CEO Steve Huffman hugs mascot Snoo as Reddit begins trading on the New York Stock Exchange on March 21, 2024. Reddit reported second-quarter results on Tuesday that topped analysts' estimates. Here are the key numbers: Loss per share: 6 cents vs. the loss of 33 cents expected by LSEG 6 cents vs. the loss of 33 cents expected by LSEG Revenue: $281 million vs. $254 million expected by LSEG Sales in the second quarter rose 54% from a year earlier. The company's net loss narrowed to $10.1 million from $41.1 million in the same quarter a year earlier. Online advertising revenue climbed 41% from a year prior to $253.1 million. The digital ad market is continuing to recover from a tough 2022, when businesses pulled back on promotional spending because of inflation and other factors. Reddit's "other revenue" which includes the company's data licensing business, rose 691% to $28.1 million. Reddit said it expects third-quarter sales of $290 million to $310 million. Analysts were expecting $278.7 million. The company said its average revenue per user was $3.08 in the second quarter, topping analyst estimates of $3.02. The number of daily active users rose 51% year-over-year to 91.2 million, topping analyst estimates of 84.5 million, according to FactSet. This is Reddit's second quarterly earnings report since the company went public in March on the New York Stock Exchange. WATCH: TechCheck: Apple, Nvidia lead big tech stocks lower