For the first time in nearly 20 years, Reddit has reported a profit. On Wednesday, the social media company announced third-quarter earnings of $29.9 million, or 16 cents per share, on revenue of $348.4 million—beating analysts’ forecasts of $312.8 million.
Reddit also shared that daily active users grew by 47% year over year, reaching 97.2 million. CEO Steve Huffman attributed much of this growth to Reddit’s new AI translation feature, which converts posts into multiple languages, including English, French, Spanish, Portuguese, Italian, and German. The feature has helped boost user numbers in markets like France, India, and the Philippines, and plans are to expand to over 30 countries by 2025.
Huffman also emphasized that Reddit will rank sixth in Google searches within the U.S. in 2024, indicating that more people are turning to Reddit when seeking answers, advice, or community.
Huffman recalled a recent incident during a hurricane when the White House utilized Reddit to share crucial information, delivering timely updates to residents in affected areas.
According to Reddit’s earnings summary, recent data licensing agreements have begun to yield financial results, while advertising remains the company’s top revenue source.
Both Google and OpenAI have signed contracts with Reddit to train their AI models on the platform’s content.
Reddit went public in March at $34 per share, with investors including OpenAI CEO Sam Altman. Since then, the company’s stock price has skyrocketed by 40.83% to $110.20, tripling its value.
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