Reddit Set to Report Earnings Tomorrow: What Analysts Forecast

Reddit (NYSE:RDDT) is set to announce its earnings results this Thursday after the bell. Analysts predict revenue growth of 55.4% year on year, a slowdown from the 61.5% increase seen in the same quarter last year.

In the previous quarter, Reddit surpassed analysts’ revenue expectations, reporting revenues of $725.6 million, up 69.7% year on year. The company also beat EBITDA estimates, showcasing a strong performance.

Reddit recorded 52.5 million daily active users, reflecting a 9.4% increase year on year. This growth is a positive indicator for the company heading into earnings.

Over the last 30 days, most analysts covering Reddit have reaffirmed their estimates. This suggests they expect the company to maintain its current trajectory.

In the consumer internet segment, peers have reported varying results. Booking reported a year-on-year revenue growth of 16.2%, while Coursera achieved a 9.1% increase, both meeting analysts’ expectations.

Investor sentiment in the consumer internet space has been positive, with share prices averaging a 16.2% increase over the last month. Reddit’s shares have risen 19.5% during this same period.

As Reddit approaches its earnings announcement, the average analyst price target stands at $223.34, significantly higher than the current share price of $148.40.

Investors are keen to see if Reddit will continue its trend of exceeding Wall Street’s expectations. The earnings report will provide critical insights into the company’s performance.

In summary, Reddit’s revenue growth is expected to decelerate, but strong user engagement and reaffirmed analyst estimates suggest a stable outlook. The results will be available after the market closes on Thursday.