Reddit has become profitable for the first time in its nearly 20 years. The company reported a net income of $29.9 million, equivalent to 16 cents per share, for the period ending in September. The social media platform exceeded sales expectations, generating $348.4 million against analysts' forecast of $312.8 million. Additionally, Reddit's daily user base soared to 97.2 million, marking a 47% year-on-year increase.
CEO Steve Huffman attributed part of this user growth to Reddit's new AI translation feature, which allows content to be translated into six languages; this upped global engagement in regions like France, India, and the Philippines. The feature is set to expand to over 30 countries by 2025. In his letter to shareholders, Huffman highlighted Reddit's pivotal role during crises, such as facilitating the White House's communication during hurricanes, while also noting that "Reddit was the sixth most Googled word in the US" in 2024.
While advertising remains Reddit's core revenue source, its financials reveal data licensing is starting to be an appreciable revenue source; the company has agreements with tech giants like Google and OpenAI to train AI models using Reddit's data. Since going public in March at $34 per share, Reddit's stock has increased 3x; it stood at $110.20 Wednesday morning. (This story was generated by Newser's AI chatbot. Source: the AP)
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