Reddit shares fell more than 11% after the company reported quarterly results that beat revenue and earnings expectations. In the third quarter, revenue reached $895 million and earnings per share came in at $1.40, while fourth-quarter sales guidance of $1 billion to $1.03 billion fell below market estimates. Reddit said search referral traffic from Google declined significantly and that it expects the trend to continue, and it will test requiring some users to log in during the fourth quarter outside the United States. Daily active uniques grew 12% year over year to 130.3 million, while average revenue per user reached $6.87 and other revenue, which includes data licensing, rose 35% to $48 million. Reddit remains in negotiations with Google over its data-licensing agreement, which also includes OpenAI as one of its largest partners.
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