6 sources·Business

Reddit Reports First-Ever Profit in Q3 Earnings with Strong User Growth

Reddit announces a $29.9 million profit for Q3, driven by user growth and new AI features, exceeding analysts' expectations.

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Updated: Oct 30th, 2024, 4:41 PM ET

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In its third-quarter earnings report, Reddit achieved its first-ever profit of $29.9 million, supported by a 68% revenue boost to $348.4 million. Daily users grew by 47% to 97.2 million, bolstered by an AI translation feature. The stock surged over 40% following the announcement. Reddit forecasts Q4 revenues between $385 and $400 million, surpassing expectations. CEO Huffman attributed user growth to international expansions and highlighted data licensing agreements with Google and OpenAI as significant revenue contributors. Analysts praised the company's strong performance and potential for continued growth in advertising and AI partnerships.

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