Changes in US stocks | Fourth quarter revenue outlook falls short of expectations Reddit (RDDT.US) results plummeted more than 27% after results

Zhitongcaijing · 2d ago

The Zhitong Finance App learned that on Friday, the social forum platform Reddit (RDDT.US) opened sharply lower. As of press release, the decline was over 27%, with a cumulative drop of more than 37% in October. According to the news, Reddit announced the third quarter results and fourth quarter outlook. The company's third-quarter revenue was US$895 million, and the market is expected to be US$869.6 million; the company expects fourth-quarter revenue of US$1 billion to US$1.03 billion, which is lower than Wall Street's average forecast of US$1.05 billion.

Additionally, Reddit CEO Steve Huffman announced that the company plans to shift the user experience to a model where the user experience is mainly based on login accounts, which will eventually limit the scope of content that users without registered accounts can access the platform, and plans to begin testing different solutions in markets outside the US in the fourth quarter. For the past 20 years, the company has allowed users to browse its forums without registering an account.

Reddit's chief operating officer Jen Wong acknowledged that the move could limit platform coverage in the short term, but said it would bring more growth opportunities in the long run.