Reddit Is Profitable For the First Time in 19 Years: Report

Reddit’s third-quarter earnings, launched on Tuesday, surprised investors with report development and profitability.

Reddit reported a profit for the primary time in its 19-year historical past, with a internet earnings of $29.9 million, or 16 cents a share, for the quarter in comparison with a internet lack of $7.4 million on the similar time final 12 months. Analysts forecasted a loss of seven cents a share for the quarter.

Income was up, growing 68% year-over-year to achieve $348.4 million, higher than the $312.8 million analysts expected. Advert income drove the majority of the rise, contributing to $315.1 million of the general complete.

The earnings additionally confirmed that Reddit’s person base is rising, with 97.2 million folks visiting the location every day within the third quarter, a report excessive and an almost 50% enhance from the identical time final 12 months. Reddit shares had been up over 22% on Tuesday after the earnings announcement.

Associated: Here’s Why Reddit Turned Down an Acquisition Offer From Google in Its Early Days, According to Cofounder Alexis Ohanian

“I am excited to share that Q3 was a landmark quarter for Reddit,” Reddit CEO Steve Huffman wrote in his quarterly letter to shareholders. He added later that “In 2024 to date, ‘Reddit’ was the sixth most Googled phrase within the U.S., underscoring that when individuals are in search of solutions, recommendation, or neighborhood, they’re turning to Reddit.”

^{Reddit CEO Steve Huffman. Credit score: Greg Doherty/Selection by way of Getty Pictures}

Huffman acknowledged that Reddit began utilizing AI to translate content material on its web site into different languages, beginning with French within the first half of the 12 months. The positioning has now expanded the hassle to Spanish, Portuguese, Italian, and German, per the letter.

Going ahead, it would attempt to make the search expertise higher for folks looking internally or these navigating to Reddit from an exterior search engine like Google, in response to the corporate.

Associated: Reddit Traffic Nearly Triples in 8 Months, Posts Rise to the Top of Google Search

Reddit was up over 120% year-to-date on the time of writing.