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.
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