Reddit triples profit to $253M but flags volatile search referrals

Reddit said on Thursday that it had a net income of $253 million in the second quarter. That’s about three times the $89 million it earned a year earlier.

But executives warned that search-engine traffic grew choppy late in the quarter, a weak spot for a company betting on turning its giant audience into daily users.

Reddit’s revenue climbed 61% for an eighth straight quarter

The headline numbers were released on the July 30 earnings call and were strong across the board. Total revenue was up 61% to $805 million from a year ago. That was the eighth straight quarter with growth above 60%. Advertising revenue jumped 64% to $762 million, with the company citing higher ad prices and more impressions.

Adjusted EBITDA was $343 million, a 43% margin, up more than 100% year-over-year. Diluted earnings per share were $1.25. The company’s cash flow from operations was $262 million in the quarter, bringing the trailing-twelve-month figure to over $1 billion for the first time, CFO Andrew Vollero told analysts. Reddit projects revenue of $860 million to $870 million for the current quarter.

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