New York, NY – Reddit, the popular social platform, has achieved a significant milestone by turning a profit for the first time since becoming a publicly traded company. The company reported a profit of $29.9 million, or 16 cents per share, for the financial quarter ending in September. This surpassed analysts’ expectations with reported sales of $348.4 million. Additionally, Reddit saw a substantial increase in daily users, reaching 97.2 million, marking a 47% rise from the previous year.
CEO of Reddit, Steve Huffman, attributed the platform’s success to the implementation of a new AI translation feature. This feature enables users to convert posts into multiple languages, including English, French, Spanish, Portuguese, Italian, and German. The expansion of this feature has resulted in significant user growth, particularly in international markets like France, India, and the Philippines. Huffman outlined plans to further extend this feature to over 30 countries by the year 2025.
The company’s revenue primarily stems from advertising; however, recent data licensing agreements have proven to be financially advantageous. Reddit has inked deals with tech giants such as Google and OpenAI to train their artificial intelligence models on its content. This strategic move has not only diversified Reddit’s revenue streams but has also positioned the company as a valuable resource for AI development.
Reddit Inc., headquartered in San Francisco, went public in March at $34 per share. Since then, the company has experienced significant growth, with the stock price tripling and closing at $116.05 on Wednesday. Notably, Reddit’s success in turning a profit since going public is a key milestone that highlights the platform’s potential for future growth and innovation.