Reddit Achieves Profitability for the First Time in Its History, with Nearly 100 Million Daily Users.
Reddit is growing.
In its recent third-quarter earnings report, Reddit announced that it has achieved profitability for the first time, reporting a figure of $29.9 million in profits, along with revenues of $348.4 million, which represents a 68 percent increase compared to the previous year. Throughout its nearly 20-year history, the company had never been profitable. After going public, Reddit accumulated $575 million in losses in its first quarter, a figure that decreased to $10 million in the previous quarter, finally achieving positive numbers.
Additionally, the platform experienced an increase in its daily user count, reaching 97.2 million, which signifies a 47 percent rise compared to the same period last year. On some days during this quarter, Reddit exceeded 100 million users.
Advertising revenue also showed significant growth, reaching $315.1 million, while revenue from other sources amounted to $33.2 million, thanks to data licensing agreements signed earlier this year. Among the companies that have established contracts with Reddit are Google and OpenAI, which use the platform's posts to train their artificial intelligence models.
In a letter to shareholders, Steve Huffman, CEO of Reddit, attributed the recent increase in users to an AI-powered translation feature implemented on the platform. Reddit began allowing users to translate posts into French last year and then extended the service to other languages such as Spanish, Portuguese, Italian, and German. Huffman announced plans to expand this feature to more than 30 countries by 2025.
The executive also highlighted that Reddit's influence continues to grow on the internet. So far in 2024, "Reddit" has positioned itself as the sixth most searched word on Google in the U.S., indicating that when seeking answers, advice, or a community, users are turning to this platform. Additionally, efforts are being made to make the search function on Reddit "easier and more intuitive."