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Reddit’s Achieved its First-ever Profit
Reddit’s making a profit for the first time in its almost two-decade history.
The social platform announced earnings of $29.9 million, or 16 cents per share, for the quarter ending in September, and recorded revenue of $348.4 million, exceeding analysts’ $312.8 million estimate. According to a statement from the company, Reddit’s daily user count increased to 97.2 million, up by 47% compared to the previous year.
CEO Steve Huffman Statement
Reddit CEO Steve Huffman stated in a shareholder letter that the new AI translation feature, enabling posts to be converted into various languages, was a key factor in increasing user growth, particularly in countries like France, India, and the Philippines. Huffman stated that Reddit intends to extend this feature to more than 30 countries by the year 2025.
“In 2024 so far, ‘Reddit’ was the sixth most Googled word in the U.S., underscoring that when people are looking for answers, advice, or community, they’re turning to Reddit,” Huffman wrote. “We saw this play out in real-time when the White House came to Reddit to share critical information during recent hurricanes, reaching people in the affected areas with timely updates.”
Although the company’s advertising is still the primary source of revenue, Reddit’s financial report mentions that its recent data licensing agreements are starting to have a positive impact on finances. Google and OpenAI have partnered with Reddit to develop their artificial intelligence models through training on its content.
In March, Reddit, in which OpenAI CEO Sam Altman is an investor, had its initial public offering at $34 per share. The stock has tripled in value, increasing by 34% to $110.20 during Wednesday morning trading.
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