Jonathan Vanian / CNBC : Reddit reports Q3 revenue up 53% YoY to $895M, vs. $878M est., DAUq up 12% to 130.3M, below est., forecasts Q4 revenue below est.; RDDT drops 9%+ after hours — Reddit plans to require all users to create official accounts to access the social media platform, marking a major departure for the site known as …
Reddit reports Q3 revenue up 53% YoY to $895M, vs. $878M est., DAUq up 12% to 130.3M, below est., forecasts Q4 revenue below est.; RDDT drops 9%+ after hours (Jonathan Vanian/CNBC)
In short
The company's recent performance highlighted solid financial gains that still failed to satisfy Wall Street due to slowing user growth. Although top-line expansion comfortably beat analyst targets, fourth-quarter sales guidance disappointed the market and sparked an immediate sell-off. Moving forward, Reddit will mandate that every user register an official account in order to access content. This unprecedented policy shift ends the platform's longstanding tradition of permitting unrestricted viewing without sign-ups.
Key points
- Disappointing forward guidance for the fourth quarter fueled an immediate decline in Redd…: Disappointing forward guidance for the fourth quarter fueled an immediate decline in Reddit stock.
- Slower user base expansion overshadowed the company's better-than-expected revenue genera…: Slower user base expansion overshadowed the company's better-than-expected revenue generation during the period.
- Platform access will soon require mandatory account creation, ending historical open gues…: Platform access will soon require mandatory account creation, ending historical open guest browsing.