Reddit Boasts Its First Profitable Earnings Report In 20 Years As Profits Hit $29.9M

It’s the success that Reddit has been waiting for 20 years and it looks like 2024 is the year.

The company just rolled out its quarterly earnings report for Q3 and it’s safe to say it’s finally made a profit. The very long wait saw the app attain $384M in revenue which is a massive 68% growth YoY.

Profits hit $29M for the company which is yet to make such a declaration in two decades of existence. After going public for the first time, the firm spoke about losing $575M during Q1 but the loss went down $10M in Q2 of this year. Now, it’s finally seeing green as displayed in the latest report.

Reddit also spoke about growth in daily users which reached 97M in just a few months. This again is a 47% rise from the same time period of 2024. The figures went above 100M on a few days during this quarter, it adds.

The advertising revenue rose to $315M while its revenue reserved for the ‘Other’ category hit $33 million thanks to data licensing documents signed during the year’s start. Let’s not forget how Google and OpenAI cut deals with apps like Reddit that will be training AI models on similar posts.

Another letter was rolled out to shareholders where Reddit’s CEO contributed to a rise in users on the app’s translation feature. Reddit also began letting users translate posts into the French language in the past before an expansion to others was noted. Reddit now hopes to expand on this further to include 30 more nations by next year.

Reddit’s impact also rises around the world and today the company says it’s the sixth most commonly searched word on Google in the US alone. So people searching for replies, advice, and more on Google do turn to Reddit. It’s also interesting to note how Reddit is making the search feature simpler and intuitive in use.

Reddit has made a series of changes to the platform which is the main reason behind its success. The goal was to produce more revenue and entail more ad deals with famous sports leagues while upgrading posts like ‘Ask Me’. it also hopes to crack down on web crawlers who take information from its website for free and without consent.

Image: DIW-Aigen

Read next: Google Reports 15% Revenue Growth In Q3 of 2024 As AI Features Expand on Search and Cloud
by Dr. Hura Anwar via Digital Information World