(Reuters) -Reddit provides for the second quarter revenues above Wall Street estimates Thursday, betting on the growth of digital advertising on the social media platform despite uncertainty on marketing budgets, which returned its 19% actions in prolonged exchanges.
The company benefits from its format of conversation investment announcements, where brands can advertise directly in the discussion discussions taking place in its communities based on interest called subdredits.
Reddit’s results suggest that its advertising technological investments are bearing fruit and that the company attracts advertisers at a time when the end of a rights -of -law import flaw, combined with the deepening of trade tensions, has limited the advertising budgets of certain social media platforms.
Meta, parent of Facebook, exceeded income expectations on solid sales sales on Wednesday. On the other hand, the smallest Rival Snap said that it did not issue quarterly forecasts due to economic uncertainty, as advertisers promote larger platforms in difficult times.
The company expects the current quarter income to be between $ 410 and $ 430, compared to the average estimate of analysts of $ 395.5 million, according to data compiled by LSEG.
Reddit is jostling with rival social media platforms, including Tiktok, Facebook and Instagram, for digital advertisements, because these platforms have become a reliable essential for marketing specialists because of their massive user base.
It expects adjusted profits before interest, taxes, damping and depreciation of $ 110 million to $ 130 million in the second quarter, beating estimates of $ 105.3 million.
The quarter income enclosed on March 31 increased by 61% to 392.4 million dollars, beating estimates of $ 370 million.
Unique daily active visitors increased by 31% to 108.1 million during the quarter, compared to 107.5 million estimates.
(Report by Jaspreet Singh in Bengaluru; edition by Mohammed Sadi Shamsi)
