Reddit reported its first quarterly profit since the company’s inception nearly two decades ago. For the third quarter ending September 30, 2024, Reddit posted a net income of $29.9 million, coupled with revenue reaching $348.4 million, reflecting a robust 68% increase from the same period last year.
Reddit’s journey to profitability follows several transformative quarters, including a reported loss of $575 million in its initial post-IPO quarter. The company reduced that deficit significantly, eventually turning positive this quarter. Daily active users climbed to 97.2 million in Q3 2024, marking a notable 47% year-over-year increase and exceeding 100 million users on certain peak days during the period.
Driving Reddit’s revenue growth was a 56% increase in advertising income, reaching $315.1 million. Additionally, revenue from data licensing soared to $33.2 million, bolstered by partnerships with tech giants like Google and OpenAI, who are leveraging Reddit data to enhance their AI models.
Reddit CEO Steve Huffman credited the user growth in part to the platform’s AI-powered translation feature. Initially launched in French, this feature has since expanded to Spanish, Portuguese, Italian, and German, with plans to reach over 30 more languages by 2025. “It was another strong quarter for Reddit and our communities as we achieved important milestones, including new levels of user traffic, revenue growth, and profitability,” said Steve Huffman, Co-Founder and CEO of Reddit.
Reddit continues to demonstrate momentum, reinforcing its role as a central hub for online communities. With nearly 100 million daily active users and a growing revenue base, Reddit is well-positioned to sustain this success in 2024 and beyond.