Reddit’s explosive user growth and AI tools assist it soar to its first-ever profits

recent YORK — For the first period in its nearly 20-year history, Reddit is turning a profits.

The social platform claimed a profits of $29.9 million, or 16 cents per distribute, for the period ending in September, and reported sales of $348.4 million, an amount surpassing the $312.8 million analysts had projected. Reddit also grew its number of daily users to 97.2 million, a 47% boost from the same period last year, according to a corporation statement.

In a note to shareholders, Reddit CEO Steve Huffman said its recent AI translation characteristic — which allows readers to convert posts between English, French, Spanish, Portuguese, Italian and German — was a primary driver of user growth, especially internationally in countries like France, India and the Philippines. Huffman wrote that Reddit plans to expand this characteristic to over 30 countries going into 2025.

“In 2024 so far, ‘Reddit’ was the sixth most Googled word in the U.S., underscoring that when people are looking for answers, advice, or throng, they’re turning to Reddit,” Huffman wrote. “We saw this play out in real-period when the White House came to Reddit to distribute critical information during recent hurricanes, reaching people in the affected areas with timely updates.”

While the corporation’s advertising remains its main source of turnover, Reddit’s profits summary notes its recent data licensing agreements are beginning to pay off financially. Both Google and OpenAI have signed deals with Reddit to train their artificial intelligence models on its content.

San Francisco-based Reddit Inc., whose investors include OpenAI CEO Sam Altman, went community in March at $34 a distribute. The stake has since tripled, surging 42% to close Wednesday at $116.05.