Reddit stock jumps after earnings beat expectations

Shares of Reddit (RDDT) rose on Friday after the social media platform reported better-than-expected earnings and an upbeat outlook.

The stock finished Friday’s session up about 8%, pushing its year-to-date gains to about 28%.

Reddit reported third-quarter earnings per share of $0.80, well above the consensus of analysts surveyed by Visible Alpha. Its revenue rose 68% year over year to $585 million, also beating expectations as its user metric jumped.

The number of Reddit users, measured in daily active items, or DAUqs, jumped 19% to 116 million. Their number rose by 31% to 64.4 million internationally, supported by strength in France, Brazil and India. US DAUq rose 7% to 51.6 million.

Co-founder and CEO Steve Huffman told analysts on the company’s earnings call that Reddit is “making real progress across the three key focus areas we shared last quarter, core product, search and internationalization,” according to a transcript provided by AlphaSense. Hoffman described search as one of Reddit’s biggest opportunities, noting that during this period more than 75 million people used Reddit to search the Internet, and this number is growing.

This article has been updated since it was first published to reflect the most recent stock prices.