Reddit Q3 Revenue Soars 68% Driven by Global User Growth and Ad Expansion

Reddit reported a strong third-quarter performance with revenue reaching $585 million, a 68% increase year-over-year, surpassing Wall Street expectations and signaling robust advertiser confidence and operational growth. Daily active users rose to 116 million, driven mainly by international growth, which now accounts for over half of its user base, highlighting Reddit's expanding global footprint. The company’s earnings per share surged to $0.80, the highest since its 2024 IPO, fueled by improvements in advertising tools, smarter search capabilities, and new AI initiatives like Reddit Answers that enhance monetization. Despite overall user growth slowing compared to previous quarters, Reddit's diversified revenue streams and increased active advertiser base—up 75% year-over-year—underscore its growing market presence and potential sustainability. Strategic investments in AI and programmatic advertising infrastructure have contributed to a 40% adjusted EBITDA margin, reflecting efficient monetization of its engaged communities. Reddit's upbeat fourth-quarter outlook further suggests confidence in continued advertising expansion and user engagement growth, supported by strong product improvements and global expansion efforts.