(Reuters) -Reddit forecast second-quarter revenue above Wall Street estimates on Thursday, betting on growing digital ad spend on the social media platform despite uncertainty over marketing budgets resulting from the ongoing trade war.
It expects current-quarter revenue to be between $410 million and $430 million, compared with the analysts’ average estimate of $395.5 million, according to data compiled by LSEG.
Reddit’s results come after Facebook-parent Meta topped revenue expectations on strong ad sales on Wednesday. In contrast, smaller rival Snap said that it would not issue a quarterly forecast due to economic uncertainty, as advertisers favor bigger platforms in tough times.
The San Francisco, California-based Reddit is benefiting from its conversation placement ads format, where brands can advertise directly within discussion threads taking place in its interest-based communities known as subreddits.
It jostles with rival social media platforms, including TikTok, Facebook and Instagram, for digital ads, as these platforms have become a reliable go-to for marketers because of their massive user base.
The company said its revenue for the quarter ended March 31 grew 61% to $392.4 million, beating estimates of $370 million.
Its daily active unique visitors rose 31% to 108.1 million during the quarter, compared with estimates of 107.5 million.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Mohammed Safi Shamsi)
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