Reddit beat estimates in the third quarter with EPS of $1.40 versus $1.35 expected and revenue of $895 million versus $878 million, but its shares fell over 11% on weak fourth-quarter guidance of $1 billion to $1.03 billion, below the $1.05 billion Wall Street estimate. The company plans to require users to create official accounts to access the platform, with testing starting in the fourth quarter outside the U.S., as CEO Steve Huffman said shrinking search referral traffic from Google has played a major role. Daily active uniques rose 12% year over year to 130.3 million but trailed the 133.7 million estimate, while U.S. DAUq fell 2% to 50.7 million. Huffman said the company is still growing at an industry leading rate and is focusing on app users and logged-in users, who generate most of its revenue. Its other revenue segment, including data licensing, rose 35% year over year to $48 million, and Reddit is still negotiating its data-licensing deal with Google.
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