Reddit reports first-ever profit amid surge in daily users

For the first time in its nearly 20-year history, Reddit has turned a profit.

In its third-quarter earnings, the company announced a $29.9 million profit on $348.4 million in revenue, a 68% increase compared to last year. Reddit’s daily active users also surged to 97.2 million, marking a 47% year-over-year rise, occasionally surpassing 100 million daily users.

CEO Steve Huffman credits new AI translation features for helping boost users, and Reddit plans to expand this to more languages and countries by 2025. Key revenue came from ads and licensing its data to companies like Google and OpenAI for AI model training.

Since going public, Reddit has focused on growing its earnings through ad deals, upgraded features, and protecting content from unauthorized web scraping.