What You Need to Know Ahead of Reddit's Earnings Tuesday

Key Metric

• Reddit will report earnings Tuesday after the market closes, with analysts expecting higher revenue but a larger net loss than the same time last year.
• Shares have surged since Reddit went public in March, with the stock more than doubling from its offer price.
• Analysts expect international growth and AI-related data licensing deals to provide avenues for growth in both daily users and revenue in the coming quarters.

Reddit (RDDT) is set to report earnings after the bell on Tuesday, with analysts expecting revenue growth, but a slightly larger net loss than it recorded the same time last year before the social media company went public.

Analysts expect revenue to rise to $311.5 million for the third quarter, up from $207.5 million a year ago and $281.2 million in the second quarter. Reddit is also expected to report an $18.1 million net loss for the quarter, more than twice the $7.4 million it lost a year ago.

Reddit shares have surged since their trading debut in March, and analysts continue to hold bullish ratings on the stock, with seven of nine analysts tracked by Visible Alpha with "buy" ratings, and two others with "hold" ratings. However, the average target price for the social media platform is $76.22, below Reddit's Thursday close above $78.