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

Reddit just turned a profit for the first time. As part of the third quarter The result was announced on Tuesdaythe company reported a profit of $29.9 million along with $348.4 million in revenue — a 68 percent year-over-year increase.

The company has not been profitable at any point in its nearly 20-year history. Since going public, Reddit lost $575 million during its first quarter on the market, but it cut that loss to $10 million last quarter and is now finally in the green.

Reddit also grew to 97.2 million daily users over the past few months, up 47 percent from the same time last year. That number surpassed 100 million users on a few days during the quarter, Reddit says.

Reddit’s ad revenue grew to $315.1 million, while “other” revenue reached $33.2 million due to “data license agreements signed earlier this year.” Both Google and OpenAI have made deals with Reddit to train their AI models on their posts.

IN a letter to shareholdersReddit CEO Steve Huffman attributed the recent increase in users to the platform’s AI-powered translation feature. Reddit started letting users 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 wider Internet,” Huffman wrote. “In 2024 so far, ‘Reddit’ was the sixth most Googled word in the US, highlighting that when people are looking for answers, advice or community, they turn to Reddit.” The platform is also working to make its search function “easier and more intuitive.”