Reddit just made profits for the first time. As part of your third trimester earnings results released on TuesdayThe company reported a profit of $29.9 million, along with $348.4 million in revenue, an increase of 68 percent year over year.
The company tech/reddit-ipo-filing-business-plan/index.html”>has not been profitable at any time in its almost 20-year history. Since going public, Reddit lost $575 million during its first quarter on the market, but narrowed that loss to $10 million last quarter, and is now finally in the green.
Reddit also grew to 97.2 million daily users in recent months, which is a 47 percent increase from the same period last year. That number surpassed 100 million users on some days during the quarter, Reddit says.
Reddit's advertising revenue grew to $315.1 million, while “other” revenue hit $33.2 million due to “data licensing deals signed earlier this year.” Both Google and OpenAI have reached agreements with Reddit to train their ai models on their posts.
In a letter to shareholdersSteve Huffman, CEO of Reddit, attributed the recent increase in users to the platform's ai-powered translation feature. Reddit began allowing users to translate posts into French last year before expanding it to Spanish, Portuguese, Italian and German. Now Huffman says Reddit plans to expand translation to more than 30 countries by 2025.
“Reddit's influence continues to grow on the Internet at large,” Huffman wrote. “So far in 2024, 'Reddit' was the sixth most searched word on Google in the US, underscoring that when people are looking for answers, advice, or community, they turn to Reddit.” The platform is also working to make its search function “easier and more intuitive.”
