Reddit simply turned a revenue for the primary time. As a part of its third-quarter earnings results released on Tuesday, the corporate reported a revenue of $29.9 million, together with $348.4 million in income — a 68 % improve yr over yr.
The corporate hasn’t been profitable at any level in its almost 20-year historical past. Since going public, Reddit misplaced $575 million throughout its first quarter available on the market, nevertheless it decreased that loss to $10 million final quarter, and is now lastly within the inexperienced.
Reddit additionally grew to 97.2 million every day customers over the previous few months, marking a 47 % improve from the identical time final yr. That quantity exceeded 100 million customers on some days throughout the quarter, Reddit says.
Reddit’s promoting income grew to $315.1 million, whereas “different” income reached $33.2 million on account of “knowledge licensing agreements signed earlier this yr.” Each Google and OpenAI have reduce deals with Reddit to coach their AI fashions on its posts.
In a letter to shareholders, Reddit CEO Steve Huffman attributed the latest improve in customers to the platform’s AI-powered translation function. Reddit began letting users translate posts into French final yr earlier than increasing it to Spanish, Portuguese, Italian, and German. Now Huffman says Reddit plans to broaden translation to over 30 international locations by means of 2025.
“Reddit’s affect continues to develop throughout the broader web,” Huffman wrote. “In 2024 thus far, ‘Reddit’ was the sixth most Googled phrase within the U.S., underscoring that when individuals are in search of solutions, recommendation, or group, they’re turning to Reddit.” The platform can also be working to make its search function “simpler and extra intuitive.”