Reddit is turning a profit for the first time in nearly 20 years

NEW YORK (AP) — For the primary time in its practically 20-year historical past, Reddit is popping a revenue.

The social platform claimed a revenue of $29.9 million, or 16 cents per share, for the interval ending in September, and reported gross sales of $348.4 million, an quantity surpassing the $312.8 million analysts had projected. Reddit additionally grew its variety of every day customers to 97.2 million, a 47% enhance from the identical time final yr, in keeping with an organization assertion.

In a letter to shareholders, Reddit CEO Steve Huffman stated its new AI translation characteristic — which permits readers to transform posts between English, French, Spanish, Portuguese, Italian and German — was a main driver of person development, particularly internationally in nations like France, India and the Philippines. Huffman wrote that Reddit plans to broaden this characteristic to over 30 nations going into 2025.

“In 2024 thus far, ‘Reddit’ was the sixth most Googled phrase within the U.S., underscoring that when individuals are searching for solutions, recommendation, or neighborhood, they’re turning to Reddit,” Huffman wrote. “We noticed this play out in real-time when the White Home got here to Reddit to share essential data throughout current hurricanes, reaching folks within the affected areas with well timed updates.”

Whereas the corporate’s promoting stays its important income, Reddit’s earnings abstract notes its current knowledge licensing agreements are starting to repay financially. Each Google and OpenAI have signed offers with Reddit to coach their synthetic intelligence fashions on its content material.

Reddit, whose buyers embody OpenAI CEO Sam Altman, went public in March at $34 a share. The inventory has since tripled, surging 34% to $110.20 in morning buying and selling Wednesday.