Reddit Leaps on Q2 Sales

Reddit (NYSE:RDDT) shares sprang to life early Friday after the company reported second-quarter earnings on Thursday that beat on sales and guidance.Earnings per share were 45 cents vs. 19 cents expected. Revenue proved to be $500 million vs. $426 million expectedReddit’s revenue grew 78% year-over-year in the second quarter and was 17% above consensus estimates, the biggest beat in its short history as a public company. Net income came in at $89 million in the second quarter, compared with a net loss of $10 million in the second quarter of last year due to costs associated with its IPO.The company said third-quarter revenue will be in the range of $535 million to $545 million, ahead of Wall Street estimates of $473 million.Adjusted earnings in the third quarter are projected to be in between $185 million to $195 million, ahead of estimates of $160 million.Reddit said global daily active users for the quarter grew 21% year-over-year to 110.4 million, ahead of analyst estimates of 109 million.The company said second-quarter global average revenue per user was $4.53, topping analyst estimates of $3.90.Reddit’s second-quarter sales in the U.S. were $409 million, ahead of estimates of $335 million. International revenue was $91 million in the quarter, compared with $89 million that experts projected.RDDT shares jumped $24.22, or 15.1%, to $184.81.