Overview
- Reddit will report Q2 results after the close on Thursday, July 30, with sell-side consensus calling for $731 million in revenue and $0.97 GAAP earnings per share.
- The company set Q2 guidance for $715 million to $725 million in revenue and $285 million to $295 million in adjusted EBITDA, leaving room for upside if management’s conservatism continues.
- Reddit posted very strong Q1 fundamentals — 69% revenue growth to $663.4 million, $625 million in ad revenue, and 126.8 million daily active users — but ads made up roughly 94% of Q1 revenue, concentrating risk in ad demand.
- A renegotiation with Google over a roughly $60 million-per-year content license is unresolved, with Reddit pushing for usage-based fees because Google’s AI Overviews can funnel users to summaries instead of Reddit pages.
- Shares trade below earlier highs near $179 with Wall Street maintaining a Moderate Buy stance and an average $226 price target, and investors will watch earnings commentary for signs on licensing revenue, referral traffic and international monetization prospects.