Reddit Is Profitable for the First Time in Nearly Two Decades

Reddit's third-quarter earnings, released connected Tuesday, surprised investors pinch grounds maturation and profitability.

Reddit reported a profit for the first clip successful its 19-year history, pinch a nett income of $29.9 million, aliases 16 cents a share, for the 4th compared to a nett nonaccomplishment of $7.4 cardinal astatine the aforesaid clip past year. Analysts forecasted a loss of 7 cents a stock for the quarter.

Revenue was up, expanding 68% year-over-year to scope $348.4 million, amended than the $312.8 cardinal analysts expected. Ad gross drove the bulk of the increase, contributing to $315.1 cardinal of the wide total.

The net besides showed that Reddit's personification guidelines is growing, pinch 97.2 million group visiting the tract regular successful the 3rd quarter, a grounds precocious and a astir 50% summation from the aforesaid clip past year. Reddit shares were up complete 22% connected Tuesday aft the net announcement.

Related: Here's Why Reddit Turned Down an Acquisition Offer From Google successful Its Early Days, According to Cofounder Alexis Ohanian

"I'm excited to stock that Q3 was a landmark 4th for Reddit," Reddit CEO Steve Huffman wrote successful his quarterly missive to shareholders. He added later that "In 2024 truthful far, 'Reddit' was the sixth astir Googled connection successful the U.S., underscoring that erstwhile group are looking for answers, advice, aliases community, they're turning to Reddit."

Reddit CEO Steve Huffman. Credit: Greg Doherty/Variety via Getty Images

Huffman stated that Reddit started utilizing AI to construe contented connected its website into different languages, starting pinch French successful the first half of the year. The tract has now expanded the effort to Spanish, Portuguese, Italian, and German, per the letter.

Going forward, it will effort to make the hunt acquisition amended for group searching internally aliases those navigating to Reddit from an outer hunt motor for illustration Google, according to the company.

Related: Reddit Traffic Nearly Triples successful 8 Months, Posts Rise to the Top of Google Search

Reddit was up over 120% year-to-date astatine the clip of writing.