$RDDT (-0.01%) To me seems quite an underrated pick at the moment.

What do you think?

$RDDT (-0.01%)

🔹 Revenue: $499.6M (Est. $427M) 🟢; UP +78% YoY

🔹 EPS (Diluted): $0.45 (Est. $0.20) 🟢

🔹 DAUq: 110.4M; UP +21% YoY

Q3 Guidance

🔹 Revenue: $535M–$545M (Est. $472.7M) 🟢

🔹 Adj EBITDA: $185M–$195M (Est. $159.5M) 🟢

Q2 Revenue Breakdown

🔹 U.S. Revenue: $409M; UP +79% YoY

🔹 International Revenue: $91M; UP +71% YoY

🔹 Ad Revenue: $465M; UP +84% YoY

🔹 Other Revenue: $35M; UP +24% YoY

Other Key Q2 Metrics:

🔹 Net Income: $89M vs. $(10)M YoY

🔹 Gross Margin: 90.8%; UP +130 bps YoY

🔹 Adjusted EBITDA: $167M; UP +127M YoY

🔹 Operating Cash Flow: $111M; UP +83M YoY

🔹 Free Cash Flow: $111M; UP +84M YoY

🔹 Fully Diluted Shares: 206.6M; UP +0.3% QoQ

CEO Commentary

🔸 “Reddit is built for this moment. In a world where connection is increasingly rare, our communities show how valuable human conversation and knowledge really are.”

🔸 “We’re focused on growing globally, scaling sustainably, and making Reddit the most trusted place on the internet.”

$RDDT (-0.01%)

- Revenue: $392.4M, +61% Y/Y

- Net Income: $26.2M vs $(575.1)M Y/Y

- DAUq: 108.1M, +31% Y/Y

CEO Steve Huffman: “20 years in, I have never been more excited about Reddit’s future than I am now.”

🌱Revenue & Growth

- U.S.: $313.9M, +57% Y/Y

- International: $78.5M, +82% Y/Y

- Ad revenue: $358.6M, +61% Y/Y

- Other revenue: $33.7M, +66% Y/Y

- ARPU: Global $3.63, +23% Y/Y; U.S. $6.27, +31% Y/Y; International $1.34, +22% Y/Y

💰Profits & Health

- Gross Margin: 90.5%, +190bps Y/Y

- Adjusted EBITDA: $115.3M, +$105.3M Y/Y

- Adjusted EBITDA Margin: 29.4% vs 4.1%

- Free Cash Flow: $126.6M vs $29.2M

- Operating Cash Flow: $127.6M vs $32.1M

- Diluted EPS: $0.13 vs $(8.19)

- Fully Diluted Shares: 206.0M, down 0.1% Q/Q

📌Business Highlights

- Logged-in DAUq: 48.7M, +23% Y/Y

- Logged-out DAUq: 59.4M, +38% Y/Y

- WAUq: 401.3M, +31% Y/Y

- Maintained capex <1% of revenue ($1.0M)

- Cash & equivalents: $1.95B

🔮Future Outlook

- Q2 Revenue: $410M–$430M

- Q2 Adjusted EBITDA: $110M–$130M

$RDDT (-0.01%)

- Revenue: $427.7M, +71% YoY

- Net income: $71.0M vs $18.5M YoY

- Daily Active Users (DAUq): 101.7M, +39% YoY

CEO Steve Huffman: "It was another strong quarter as we accomplished exciting milestones across revenue and international growth. However, what's most exciting is still ahead. We're focused on providing a best-in-class experience for finding community and trusted information, proving that Reddit is for everyone, everywhere."

🌱Revenue & Growth

- Total revenue: $427.7M, +71% YoY

- Ad revenue: $394.5M, +60% YoY

- Other revenue: $33.2M

- US revenue: $347.7M, +70% YoY

- International revenue: $80.0M, +76% YoY

💰Profits & Financials

- Gross margin: 92.6%, up 420 bps YoY

- Adjusted EBITDA: $154.3M vs $23.2M YoY

- Adjusted EBITDA margin: 36.1% vs 9.3% YoY

- Operating cash flow: $90.0M vs -$17.4M YoY

- Free cash flow: $89.2M vs -$22.0M YoY

- Cash and marketable securities: $1.84B

📌Business Highlights

- Weekly Active Users (WAUq): 379.4M, +42% YoY

- Global ARPU: $4.21, +23% YoY

- Fully diluted shares: 206.2M, down 0.1% QoQ

🔮Future Outlook

- Q1 2025 revenue expected: $360M-$370M

- Q1 2025 Adjusted EBITDA expected: $80M-$90M

$RDDT (-0.01%) 's community-based platform allows for contextual and interest-based advertising services. On Reddit, advertisers can reach their audience based on users' specific interests.

Can it potentially lead the competition in the contextual and interest-based ads market? Is any competitive advantage here sustainable for the long-term?🤔