Reddit (RDDT) reported third-quarter earnings of $1.40 per share, above the Zacks Consensus Estimate of $1.31, while revenue rose 53% to $895 million and advertising revenue grew 54% to $847 million. Search referral traffic, particularly from Google, declined significantly and deteriorated further toward September, with average weekly search referrals falling by more than 1 million in October. Management warned that if these trends persist, total daily active uniques could decline by a low-double-digit percentage sequentially in the fourth quarter. To reduce reliance on search, Reddit plans to test a primarily logged-in experience in select international markets during the fourth quarter. The company projected fourth-quarter revenue of $1 billion to $1.03 billion, up 38% to 42%.
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