Reddit reported its first-ever profit in the third quarter, announcing earnings results that include a profit of $29.9 million and revenue totaling $348.4 million. This represents a 68 percent increase in revenue compared to the previous year.

The company, which had not been profitable throughout its nearly 20-year history, has been experiencing financial losses since it went public. Reddit initially posted a $575 million loss during its first quarter on the market but reduced this loss to $10 million in the previous quarter before finally achieving profitability.

Over recent months, Reddit’s daily user count grew to 97.2 million, marking a 47 percent increase from the same period last year. On several days during the quarter, daily users exceeded 100 million, according to Reddit.

Advertising revenue for Reddit increased to $315.1 million, while additional revenue sources, including data licensing agreements, contributed $33.2 million. Both Google and OpenAI have engaged in agreements with Reddit to utilize its posts for training their AI models.

In a letter to shareholders, Reddit CEO Steve Huffman attributed the rise in user numbers to the platform’s AI-powered translation feature. Initially, last year, Reddit allowed users to translate posts into French before expanding to Spanish, Portuguese, Italian, and German. Huffman now plans to further expand translation capabilities across more than 30 countries by 2025.

Huffman highlighted Reddit’s growing influence on the broader internet, noting that in 2024, “Reddit” was the sixth most Googled word in the U.S. He emphasized that as people seek answers, advice, or community, they increasingly turn to Reddit. Moreover, the company aims to improve the usability and intuitiveness of its search feature.

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