Reddit's explosive user growth and AI tools help it soar to its first profit as a public company

Reddit has turned a profit for nan first clip arsenic a nationalist company

NEW YORK -- Reddit has turned a profit for nan first clip arsenic a nationalist company.

The societal level claimed a profit of $29.9 million, aliases 16 cents per share, for nan play ending successful September, and reported income of $348.4 million, an magnitude surpassing nan $312.8 cardinal analysts had projected. Reddit besides grew its number of regular users to 97.2 million, a 47% summation from nan aforesaid clip past year, according to a institution statement.

In a letter to shareholders, Reddit CEO Steve Huffman said its caller AI translator characteristic — which allows readers to person posts betwixt English, French, Spanish, Portuguese, Italian and German — was a superior driver of personification growth, particularly internationally successful countries for illustration France, India and nan Philippines. Huffman wrote that Reddit plans to grow this characteristic to complete 30 countries going into 2025.

“In 2024 truthful far, ‘Reddit’ was nan sixth astir Googled connection successful nan U.S., underscoring that erstwhile group are looking for answers, advice, aliases community, they’re turning to Reddit,” Huffman wrote. “We saw this play retired successful real-time erstwhile nan White House came to Reddit to stock captious accusation during caller hurricanes, reaching group successful nan affected areas pinch timely updates.”

While nan company's advertizing remains its main root of revenue, Reddit's net summary notes its recent information licensing agreements are opening to salary disconnected financially. Both Google and OpenAI person signed deals pinch Reddit to train their artificial intelligence models connected its content.

San Francisco-based Reddit Inc., whose investors see OpenAI CEO Sam Altman, went nationalist successful March astatine $34 a share. Before that, it booked profits successful nan first 4th of 2021 and 4th fourth of 2023.

Since nan first nationalist offering, nan banal has tripled, surging 42% to adjacent Wednesday astatine $116.05.

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This communicative has been updated to correct that Reddit turned its first profit since going public, not successful its 20-year history.