Home Reddit becomes profitable for first time and reaches record daily users

Reddit becomes profitable for first time and reaches record daily users

Almost 20 years on, Reddit has reported a profit for the first time in its history and its figures show a steady climb upwards in comparison to what was reported last year.

The news came through its submitted third-quarter earnings which were published on Tuesday (October 29). In the earnings, the company shared they had a net profit of $29.9 million, with revenue totaling $348.4 million.

This is a huge increase when compared to the same period of last year, with a 68% increase in revenue.

“It was another strong quarter for Reddit and our communities as we achieved important milestones, including new levels of user traffic, revenue growth, and profitability,” said Steve Huffman, Co-Founder and CEO of Reddit.

“Reddit continues to be one of the most visited and trusted sites in the world with opportunities available to us that aren’t available to most companies.”

The last few months have also seen the website grow to 97.2 million daily users which is a whopping 47% increase from the same time last year. The number exceeded 100 million users on some days throughout the quarter.

Reddit is profitable, with majority of revenue coming from advertising

The platform is social news aggregation where registered users can submit content to the site and then others can vote on their posts or reply back to the many different subreddits. The website was launched in 2005 and was founded by University of Virginia roommates Steve Huffman, Aaron Swartz, and Alexis Ohanian.

It was in March of 2024 when the company went public and it wasn’t the smoothest of transitions, especially as it lost $575 million in its first quarter on the stock market.

Since then, however, Reddit has made steady progress and that loss was lowered to $10 million in the last quarter.

The majority of reported revenue came from advertising which has grown to $315.1 million, with an additional $33.2 million being generated from other income streams including data licensing deals.

It was only in February that the company signed an AI content licensing deal with Google, with the contract rumored to be worth about $60 million per year. Just a few months later, in May, a partnership agreement with OpenAI was announced too.

Featured Image: Photo by Brett Jordan on Unsplash

About ReadWrite’s Editorial Process

The ReadWrite Editorial policy involves closely monitoring the tech, gambling and blockchain industries for major developments, new product and brand launches, AI breakthroughs, game releases and other newsworthy events. Editors assign relevant stories to in-house staff writers with expertise in each particular topic area. Before publication, articles go through a rigorous round of editing for accuracy, clarity, and to ensure adherence to ReadWrite's style guidelines.

Sophie Atkinson
Tech Journalist

Sophie Atkinson is a UK-based journalist and content writer, as well as a founder of a content agency which focuses on storytelling through social media marketing. She kicked off her career with a Print Futures Award which champions young talent working in print, paper and publishing. Heading straight into a regional newsroom, after graduating with a BA (Hons) degree in Journalism, Sophie started by working for Reach PLC. Now, with five years experience in journalism and many more in content marketing, Sophie works as a freelance writer and marketer. Her areas of specialty span a wide range, including technology, business,…

Get the biggest tech headlines of the day delivered to your inbox

    By signing up, you agree to our Terms and Privacy Policy. Unsubscribe anytime.

    Tech News

    Explore the latest in tech with our Tech News. We cut through the noise for concise, relevant updates, keeping you informed about the rapidly evolving tech landscape with curated content that separates signal from noise.

    In-Depth Tech Stories

    Explore tech impact in In-Depth Stories. Narrative data journalism offers comprehensive analyses, revealing stories behind data. Understand industry trends for a deeper perspective on tech's intricate relationships with society.

    Expert Reviews

    Empower decisions with Expert Reviews, merging industry expertise and insightful analysis. Delve into tech intricacies, get the best deals, and stay ahead with our trustworthy guide to navigating the ever-changing tech market.