As of September 30, 2024, Reddit, Inc. reported significant financial growth compared to the previous fiscal period. The company achieved total revenue of $348.4 million for the third quarter, marking a 68% increase from $207.5 million in the same quarter of 2023. For the nine months ended September 30, 2024, total revenue reached $872.5 million, up 57% from $554.3 million in the prior year. This growth was primarily driven by a substantial rise in advertising revenue, which amounted to $315.1 million for the third quarter, compared to $202.4 million in the previous year.
Despite the revenue increase, Reddit reported a net income of $29.9 million for the third quarter, a turnaround from a net loss of $7.4 million in the same period of 2023. However, for the nine months ended September 30, 2024, the company recorded a net loss of $555.3 million, worsening from a loss of $109.4 million in the same period of 2023. The accumulated deficit also increased to $(1.3 billion) as of September 30, 2024.
Total costs and expenses for the third quarter were $341.5 million, up from $227.1 million in the prior year, reflecting increased operational costs, particularly in research and development, which rose by 54% to $166.7 million. General and administrative expenses also surged by 76% to $65.5 million.
In terms of strategic developments, Reddit completed an acquisition on July 15, 2024, for a total purchase consideration of $19.9 million, which included $17.1 million in cash and $2.8 million in equity. The company also underwent a significant IPO in March 2024, raising $600 million in net proceeds, which has bolstered its cash position to $1.7 billion as of September 30, 2024.
User engagement metrics showed positive trends, with Daily Active Users (DAUq) increasing by 47% year-over-year to 97.2 million. The Average Revenue Per Unique (ARPU) also improved by 14% to $3.58, driven by higher advertising revenue.
Reddit's financial position reflects a complex landscape of growth and challenges, with ongoing investments in user engagement and product development expected to drive future performance. The company continues to navigate the competitive advertising market while managing increased operational costs and a growing accumulated deficit.
About Reddit, Inc.
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