Reddit turned a profit for the first time in its nearly 20-year history

One of the world's largest platforms for sharing content and discussions, Reddit, for the first time in its almost 20-year history, was able to record a profit. In the third quarter of 2024, the company reported revenue of $348.4 million and net income of $29.9 million, a 68% year-over-year increase.

According to a report from The Verge, despite the fact that Reddit went public at the beginning of the year with a huge loss of $575 million, the company was able to reduce those losses and finish the last quarter with a positive financial result. This testifies to the success of the strategies implemented in recent months.

In addition, Reddit achieved a new record for the number of active users, which increased by 47% compared to last year, reaching 97.2 million daily visitors. On some days, the platform even exceeded 100 million users, which indicates the growing popularity of the service.

Reddit's main source of revenue was growth in advertising revenue, which totaled $315.1 million, and data licensing, which brought in $33.2 million. The company's key partners include giants like Google and OpenAI, which have signed deals to use Reddit data to train their AI models.

Reddit CEO Steve Huffman said the growth in new users was made possible in part by a new AI-powered translation feature that allows users to translate posts in five languages. The company plans to further expand this feature to more than 30 countries by 2025.

Reddit is also working on improving the search function to make it more user-friendly. Since its IPO, the company has signed advertising deals with professional sports leagues and revamped a number of features, including the popular Ask Me Anything (AMA) feature, as well as protecting the platform from third-party scanners. Reddit is actively investing in new solutions that should support growth and ensure the company's long-term profitability.