Reddit shares surged up to 20% after the company beat second-quarter sales expectations and raised its guidance, according to CNBC. The social media company reported earnings of 45 cents per share and $500 million in revenue, surpassing expectations of 19 cents per share and $426 million in revenue. Second-quarter sales grew 78% year-over-year and beat consensus estimates by 17%, marking its largest outperformance since going public. Reddit’s global daily active users rose 21% year-over-year to 110.4 million, surpassing analyst estimates of 109 million. Reddit CEO Steve Huffman told shareholders that Reddit Answers, the company’s AI-powered tool, now has 6 million weekly users and will be integrated more deeply into search as it expands globally. He added that Reddit’s role as a community-driven platform is growing more vital as the internet evolves.
