For the first time in its nearly 20-year history, Reddit has reported a quarterly profit, earning $29.9 million. The platform also experienced significant user growth, reaching nearly 100 million daily active users—up 47% compared to the previous year. Reddit attributed its success to multiple factors, including advertising revenue, user growth, and a content licensing deal with Google and OpenAI, according to The Verge.
Revenue Growth and Advertising Success
Reddit reported $348.4 million in revenue for the third quarter, representing a 68% year-over-year increase. This milestone comes after the platform faced heavy financial losses earlier in the year, including a $575 million loss in the first quarter following its public offering. However, gradual improvements allowed Reddit to reverse this trend and achieve profitability.
Advertising remained the platform’s primary income source, generating $315.1 million. An additional $33.2 million came from other sources, including content licensing. Notably, Google and OpenAI acquired access to Reddit data to enhance their AI models.
User Growth and Future Plans
The number of active users on Reddit has surged, with the platform reaching 97.2 million daily users. On certain days, the figure even surpassed 100 million. According to Reddit’s CEO, Steve Huffman, audience growth was fueled by new features, particularly AI-powered post translations. Initially, Reddit supported translations in French, later expanding to Spanish, Portuguese, Italian, and German. The company aims to enable translations for over 30 languages by 2025, adds NIX Solutions.
Reddit’s growing popularity is reflected in search trends, with “Reddit” ranking as the sixth most-searched term on Google in the US during 2024. Additionally, the platform continues to improve its internal search functionality, focusing on making it more user-friendly and efficient.
We’ll keep you updated on Reddit’s future developments and new features as the company continues to grow and expand its audience worldwide.