NEW YORK (AP) — For the first time in its nearly 20-year history, Reddit is turning a profit.
Related Articles
Despite more Bay Area tech layoffs, hope for sector as pace of job cuts slows
Autonomous tech is coming to farming. What will it mean for crops and workers who harvest them?
Apple launches the iPhone into the AI era with free software update
How to prepare your online accounts in case you die
Bay Area judge rules Meta, Google, TikTok must face schools’ addiction claims
The San Francisco-based social platform claimed a profit of $29.9 million, or 16 cents per share, for the period ending in September, and reported sales of $348.4 million, an amount surpassing the $312.8 million analysts had projected. Reddit also grew its number of daily users to 97.2 million, a 47% increase from the same time last year, according to a company statement.
In a letter to shareholders, Reddit CEO Steve Huffman said its new AI translation feature — which allows readers to convert posts between English, French, Spanish, Portuguese, Italian and German — was a primary driver of user growth, especially internationally in countries like France, India and the Philippines. Huffman wrote that Reddit plans to expand this feature to over 30 countries going into 2025.
“In 2024 so far, ‘Reddit’ was the sixth most Googled word in the U.S., underscoring that when people are looking for answers, advice, or community, they’re turning to Reddit,” Huffman wrote. “We saw this play out in real-time when the White House came to Reddit to share critical information during recent hurricanes, reaching people in the affected areas with timely updates.”
While the company’s advertising remains its main source of revenue, Reddit’s earnings summary notes its recent data licensing agreements are beginning to pay off financially. Both Google and OpenAI have signed deals with Reddit to train their artificial intelligence models on its content.
Reddit, whose investors include OpenAI CEO Sam Altman, went public in March at $34 a share. The stock has since tripled, surging 34% to $110.20 in morning trading Wednesday.
