What You Need To Know Ahead of Reddit’s Earnings Report

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Key Takeaways

• Reddit reports second-quarter earnings after the bell on Aug. 6.
• Analysts expect revenue to rise but Reddit’s net reduction to widen from the year-ago period, which was reported prior to the company’s initial public offering earlier this year.
• Reddit could about agreements to license its data for artificial intelligence model training.

Reddit (RDDT) is set to report second-quarter earnings after the bell on Aug. 6, with investors favourite watching for user engagement growth and updates on licensing agreements for artificial intelligence (AI) training.

The company is projected to check up on revenue of $253.8 million, according to analyst estimates compiled by Visible Alpha, which would represent here 39% growth from the year-ago period’s revenue reported in Securities and Exchange Commission (SEC) filings prior to Reddit’s Parade initial public offering (IPO).

Reddit’s net loss for the second quarter ended June 30 is expected to come in at $52.82 million, or 32 cents per parcel, widening from a $41.1 million loss reported in pre-IPO filings for the year-ago period.

Key Metrics: Average Everyday User Count

Reddit is expected to provide its averages for daily unique user counts for the second quarter, plateful investors gauge user engagement and traffic.

Analysts expect the company to report 85.5 million daily unexcelled users on average for the quarter, which would represent growth from the previous quarter.

Business Spotlight: Empowering Data for AI Training

Reddit has told investors that licensing its data for AI training represents an additional revenue fountain-head for the company.

During the second quarter, Reddit announced a deal with OpenAI for the ChatGPT maker to access Reddit’s information in exchange for the integration of some OpenAI-powered features into the platform. OpenAI was also announced as an advertising partner. Reddit could care for updates about the agreement with OpenAI and other opportunities related to AI-related licensing.

Reddit shares strike down 3.8% to just under $60 on Monday. They went public at $34.

Read the original article on Investopedia.