Tech Desk 
Oct 31, 2024
Reddit has posted its first-ever profit after almost two decades in operation, marking a pivotal milestone for the social media platform. Results released on Tuesday reveal a $29.9 million profit, with total revenue reaching $348.4 million—a 68% year-over-year increase.
Since going public, Reddit initially faced steep losses, reporting a $575 million deficit in its first quarter on the market. However, this figure reduced to $10 million by last quarter, reflecting the company's drive towards sustainable growth.
Recent months have shown even more improvement as Reddit’s daily active users surged to 97.2 million, followed by a subsequent increase to 100 million users, amounting to a 47% rise in traffic.
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Alongside user growth, Reddit’s advertising revenue has seen substantial gains, rising to $315.1 million. An additional $33.2 million came from other revenue streams, largely boosted by Reddit’s data licensing deals with companies like Google and OpenAI, which are utilising Reddit’s post data to train their AI models.
Reddit’s AI-powered translation tool has likely contributed to its recent success. Originally launched with French translations, the feature now supports languages including Spanish, Portuguese, Italian, and German, with plans to add 30 more languages. CEO Steve Huffman highlighted Reddit’s expanding reach, stating, “Reddit’s influence continues to grow across the broader internet.”
With these strategic advancements, Reddit is set to further solidify its position as a leading platform for user-generated content and online communities.
