The digital ad market is improving, leading to better-than-expected results for Reddit in the second quarter.

• Reddit reported earnings for the second time as a public company.
• The company's revenue exceeded analysts' expectations, and their loss was less than anticipated.
• The company's data-licensing revenue is providing an additional boost to its already thriving advertising business.

reported second-quarter results on Tuesday that topped analysts' estimates.

Here are the key numbers:

• LSEG expected to lose 33 cents per share, compared to the 6 cents loss.
• Revenue: $281 million vs. $254 million expected by LSEG

In the second quarter, the company's net loss decreased by 77.6% compared to the same quarter the previous year.

The digital ad market is recovering from a tough 2022, when businesses pulled back on promotional spending due to inflation and other factors, resulting in a 41% increase in online advertising revenue to $253.1 million.

The company's data licensing business, which accounts for its "other revenue," experienced a 691% increase to $28.1 million.

Reddit anticipates third-quarter sales to be between $290 million and $310 million, while analysts predicted $278.7 million.

In the second quarter, the company's average revenue per user was $3.08, surpassing analyst predictions of $3.02. Additionally, the number of daily active users increased by 51% year-over-year to 91.2 million, exceeding analyst estimates of 84.5 million, as reported by FactSet.

Since going public on the New York Stock Exchange in March, this is Reddit's second quarterly earnings report.

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