Reddit Q3 ad revenue rises 74% to $549 million as daily actives hit 116 million

New Delhi: Reddit’s September quarter ad revenue rose 74% year-on-year to $549 million, paced by a bigger and more engaged audience. 

Daily Active Uniques climbed 19% to 116.0 million, with the US at 51.6 million (up 7%) and international users at 64.4 million (up 31%).

Total revenue grew 68% to $585 million, while gross margin expanded to 91.0%. 

The platform’s Q3 ad revenue accounted for about 94% of its total revenue for the quarter. Reddit also increased its advertiser accounts by 75% YOY.

Net income was $163 million and adjusted EBITDA reached $236 million. 

For the December quarter, the company guided revenue to $655–$665 million and adjusted EBITDA to $275–$285 million. 

“Reddit provides something rare on the Internet,” CEO Steve Huffman said, citing 444 million weekly visitors and growing engagement with brands, institutions and publishers. The company said ad gains were complemented by steady growth in “other revenue,” which rose 7% to $36 million. 

Reddit ended the quarter with 206.1 million fully diluted shares outstanding and $2.23 billion in cash, cash equivalents and marketable securities.