Reddit has recently achieved profitability for the first time. As per the third-quarter earnings report unveiled on Tuesday, the company disclosed a profit of $29. 9 million and revenue of $348. 4 million, marking a 68% rise compared to the previous year. The company has not been profitable at any time throughout its almost two-decade history. Since becoming a publicly traded company, Reddit incurred a loss of $575 million in its initial quarter on the market. However, this loss was reduced to $10 million in the last quarter. Subsequently, Reddit has entered a profitable phase. Reddit has also seen growth in its user base, with daily users rising to 97. 2 million over the previous few months, reflecting a 47 percent increase compared to the corresponding period last year. Reddit reports that the number of users surpassed 100 million on certain days throughout the quarter.
Reddit’s advertising revenue increased to $315. 1 million, while the revenue from “other” sources amounted to $33. 2 million due to “data licensing agreements signed earlier this year. ” Both Google and OpenAI have established agreements with Reddit to utilize its posts for training their AI models. In a communiqué addressed to the shareholders, Reddit Chief Executive Officer, Steve Huffman, credited the recent uptick in users to the advanced AI-driven translation functionality of the platform. Reddit commenced allowing users to translate posts into French last year
subsequently expanding this feature to include Spanish, Portuguese, Italian, and German. Now, Huffman has stated that Reddit intends to broaden its translation services to more than 30 countries by the year 2025. “Reddit’s influence is increasingly expanding throughout the wider Internet,” stated Huffman. In 2024, ‘Reddit’ has emerged as the sixth most frequently searched term on Google in the United States. This highlights the fact that individuals resort to Reddit when seeking solutions, guidance, or a sense of belonging. Moreover, the platform is dedicated to enhancing its search functionality to be more user-friendly and intuitive.
Subsequent to its initial public offering earlier this year, Reddit has implemented various modifications to boost its financial returns. These changes include securing advertising agreements with professional sports organizations, enhancing its “ask me anything” feature, and taking measures to combat unauthorized web crawling activities aiming to extract its content. Huffman has contemplated the notion of allowing users to establish paid subreddits and has taken measures to preclude site-wide demonstrations.
