The Reddit platform has made a profit for the first time. In its report for the third quarter, the company reported a profit of $29.9 million and revenue of $348.4 million, which is 68% more than last year.
This was reported by The Verge.
The company has never been profitable in its almost 20-year history. Since going public, Reddit lost $575 million during the first quarter on the market. Still, last quarter, it cut that loss to $10 million and is finally in the black.
Over the past few months, the number of daily Reddit users has grown to 97.2 million, which is 47% more than in the same period last year. According to Reddit, on some days during the quarter, the number of users exceeded 100 million.
Reddit’s advertising revenues increased to $315.1 million, and other revenues reached $33.2 million due to “data licensing agreements signed earlier this year.” Both Google and OpenAI have signed agreements with Reddit to train their AI models on its posts.
In a letter to shareholders, Reddit CEO Steve Huffman attributed the recent growth in the number of users to the AI-powered translation feature. Last year, Reddit allowed users to translate posts into French and expanded the feature to Spanish, Portuguese, Italian, and German. According to Huffman, Reddit plans to expand translation to more than 30 countries by 2025.