Shares of social curation platform Reddit showed 20% growth after the company posted its Q2 results, which reported double-digit growth in its earnings, across profitability and cash flow metrics, according to its official release on Thursday.
“Reddit is built for this moment. In a world where connection is increasingly rare, our communities show how valuable human conversation and knowledge really are,” said Reddit’s CEO, Steve Huffman, in an official statement.
“We’re focused on growing globally, scaling sustainably, and making Reddit the most trusted place on the internet,” he also added.
Revenues for the quarter were $500 million, reflecting a 78% increase on a y-o-y basis. Of this, ad revenue increased by 84% to $465 million, forming a huge portion of total revenue. Other forms of revenue increased by 24% to $35 million.
Profitability metrics showed positive growth with net income of $89 million and adjusted EBITDA of $167 million. Cash flow metrics also registered a significant increase with an operating cash flow of $111 million and a free cash flow of $111 million.
The company predicts further growth for future earnings with estimates of $535 million to $545 million for revenues and $185 million to $195 million for adjusted EBITDA.
Source: Google Finance