The Reddit platform turned a profit for the first time in its 20 years of existence

The Reddit platform turned a profit for the first time. In its report for the third quarter, the company reported a profit of $29.9 million, as well as $348.4 million in sales, which is 68% more than last year.

The Verge writes about it.

The company has never been profitable in its nearly 20-year history. Since going public, Reddit lost $575 million during its first quarter on the market, but last quarter it trimmed that loss to $10 million and is now finally in the black.

Over the past few months, the number of daily users on Reddit has grown to 97.2 million, a 47% increase over the same period last year. According to Reddit, on some days during the quarter, that number exceeded 100 million users.

Redditʼs ad revenue rose to $315.1 million, while "other" revenue reached $33.2 million thanks to "data licensing agreements signed earlier this year." Both Google and OpenAI have made deals with Reddit to train their AI models on its posts.

In a letter to shareholders, Reddit CEO Steve Huffman attributed recent user growth to the AI-powered translation feature. Last year, Reddit allowed users to translate posts into French, and later expanded the feature to Spanish, Portuguese, Italian, and German. Now, according to Huffman, Reddit plans to expand translation to more than 30 countries by 2025.

"Redditʼs influence continues to grow across the Internet. In 2024, Reddit was the sixth most searched word on Google in the US, highlighting that when people are looking for answers, advice or community, they turn to Reddit,” says Hoffman.

The platform is also working to make its search "simpler and more intuitive.”

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