Rddt

$RDDT (-9.82%) '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?🤔

$RDDT (-9.82%) | Reddit Q3'24 Earnings Highlights

🔹 Revenue: $348.4M (Est. $312.8M) 🟢; +68% YoY

🔸 Advertising Revenue: $315.1M (Est. $277M) 🟢

🔸 Other Revenue: $33.2M (Est. $35.9M) 🔴

🔹 Net Income: $29.9M (Est. -$13.8M loss) 🟢

🔹 Adjusted EBITDA: $94.1M (Est. $58.9M) 🟢; +229% YoY

🔹 Free Cash Flow: $70.3M 🟢

🔹 Gross Margin: 90.1% (up 280 basis points YoY)

Q4'24 Guidance:

🔹 Revenue: $385M-$400M (Est. $356.2M) 🟢

🔹 Adjusted EBITDA: $110M-$125M (Est. $87M) 🟢

User Metrics:

🔹 Daily Active Users (DAUs): 97.2M (Est. 96.36M) 🟢; +47% YoY

🔸 US DAUs: 48.2M (Est. 48.26M)

🔸 International DAUs: 49M (Est. 48.95M) 🟢

Revenue Per User (ARPU):

🔹 Global ARPU: $3.58 (Est. $3.22) 🟢

🔹 US ARPU: $5.88 (Est. $5.19) 🟢

🔹 International ARPU: $1.32 (Est. $1.24) 🟢

Operating Expenses:

🔹 R&D Expenses: $166.7M

Operational Highlights:

🔹 Ad Revenue Growth: +56% YoY

🔹 International DAUs: Now exceed US users 

🔹 Net Income: Achieved profitability with an 8.6% net margin

🔹 Workforce Compensation: Invested $66M to net-settle 1.2M employee shares

CEO Commentary:

"Our communities continue to grow, and we are unlocking new revenue streams while reaching profitability. With opportunities available that few companies have, we are well-positioned for long-term growth." – Steve Huffman, CEO