With nearly 100 million daily users, Reddit is profitable for the first time ever

Reddit just made a profit for the first time. As part of its third-quarter results released on Tuesday, the company reported a profit of $29.9 million and revenue of $348.4 million – a 68 percent increase from a year ago.

The company has never been profitable in its almost 20-year history. Since going public, Reddit lost $575 million in the first quarter of the market, but was able to reduce that loss to $10 million in the last quarter and is now finally in the green.

Reddit also grew in recent months to 97.2 million daily users, a 47 percent increase over the same period last year. According to Reddit, that number exceeded 100 million users on some days during the quarter.

Reddit's advertising revenue rose to $315.1 million, while “other” revenue reached $33.2 million due to “data licensing agreements signed earlier this year.” Both Google and OpenAI have contracts with Reddit to train their AI models on its posts.

In a letter to shareholders, Reddit CEO Steve Huffman attributed the recent surge in users to the platform's AI-powered translation feature. Reddit began allowing users to translate posts into French last year before expanding to Spanish, Portuguese, Italian and German. Now Huffman says Reddit plans to expand translation to over 30 countries by 2025.

“Reddit’s influence continues to grow across the internet,” Huffman wrote. “So far in 2024, 'Reddit' was the sixth most Googled word in the US, underscoring that people looking for answers, advice or community are turning to Reddit.” The platform is also working to make its search function “easier and “more intuitive”.