Reddit posts strong Q2 growth as US user headwinds weigh on stock
Reddit delivered a strong Q2 with revenue up 61% to $805 million and net income of $253 million, driven by a 64% rise in advertising and an 84% jump in international monetization; gross margin expanded to 91.3% and adjusted EBITDA rose to $343 million. Global daily active users rose 18% to 130.3 million, with weekly uniques surpassing 514.6 million. For Q3, Reddit guided revenue of $860–$870 million and EBITDA of $385–$395 million. Despite the solid results, the stock fell about 9% in pre-market trading after concerns about a decline in US DAUs and questions about the pace of US user growth.