Reddit's third-quarter results beat estimates, with revenue of $895 million up 53% year on year and adjusted EPS of $2.07, yet the stock drew a significant negative market reaction. Revenue guidance of $1.02 billion for the fourth quarter sat below analyst estimates of $1.04 billion. In the Q&A, analysts pressed on the shift to a logged-in-only experience, the sharp drop in traffic from Google, and how to model user monetization. CEO Steve Huffman said logged-in and app users make up the vast majority of engagement and over 80% of the monetization on Reddit, described the transition as a test that will be permanent, and confirmed it will make Reddit harder to scrape.
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