Reddit simply turned a revenue for the primary time. As a part of its third quarter earnings outcomes launched on Tuesday, the corporate reported a revenue of $29.9 million, together with $348.4 million in income — a 68 p.c enhance yr over yr.
The corporate hasn’t been worthwhile 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, but it surely decreased that loss to $10 million final quarter and is now lastly within the black.
Reddit additionally grew to 97.2 million every day customers over the previous few months, marking a 47 p.c enhance from the identical time final yr. That quantity exceeded 100 million customers on some days in the course of the quarter, Reddit says.
Reddit’s promoting income grew to $315.1 million, whereas “different” income reached $33.2 million on account of “information licensing agreements signed earlier this yr.” Each Google and OpenAI have reduce offers with Reddit to coach their AI fashions on its posts.
In a letter to shareholders, Reddit CEO Steve Huffman attributed the latest enhance in customers to the platform’s AI-powered translation characteristic. Reddit began letting customers translate posts into French final yr earlier than increasing to Spanish, Portuguese, Italian, and German. Now, Huffman says Reddit plans to increase translation to over 30 international locations via 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 be working to make its search characteristic “simpler and extra intuitive.”
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