Reddit shares jump 22% as AI deals boost quarterly revenue forecast – ThePrint – ReutersFeed

(Reuters) -Reddit forecast fourth-quarter revenue above Wall Street estimates on Tuesday, helped by its AI content licensing deals and strong digital advertising spending.

Shares of the San Francisco-based company, popular for its user-led communities known as subreddits, rose 22% in extended trading.

Reddit’s quarterly results, third after going public in March, stoke confidence that more advertisers are turning to the platform, driven by initiatives including translation in other languages using machine learning to tap new users.

The company’s content licensing deals with Alphabet’s Google and Microsoft-backed OpenAI for training their AI models have also been boosting its revenue, analysts have said.

The social media platform also has deals with sports leagues with the likes of National Basketball Association, which are helping the company to bring more sports content on the platform and attract ad dollars.

Reddit expects fourth-quarter revenue to be between $385 million and $400 million, compared with analysts’ average estimate of $357.9 million, according to data compiled by LSEG.

The company’s daily active unique visitors increased 47% to 97.2 million in the third quarter ended Sept. 30, while its global average revenue per user (ARPU) increased 14% to $3.58.

Revenue rose 68% to $348.4 million in the quarter, beating analysts’ estimate of $312.8 million.

(Reporting by Jaspreet Singh in Bengaluru; Editing by Maju Samuel)

Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.

FOLLOW US ON GOOGLE NEWS

Read original article here

Denial of responsibility! Todays Chronic is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – todayschronic.com. The content will be deleted within 24 hours.

Leave a Comment