Reddit Releases Positive Third-Quarter Financial Results

For the first time in its nearly 20-year existence, Reddit made money. The social media company posted a profit of almost $30 million in the third quarter of 2024. Revenue increased 68% to $348.4 million.

The number of active Reddit users averaged 97 million in the most recent period, representing a 47% surge over Q3 2023. Alongside user growth, the company brought in more advertising revenue — just over $315 million.

“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 Reddit CEO Steve Huffman. “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.”

In March, Reddit went public and saw a $575 million loss in its first quarter. Yet, the company managed to cut that loss to $10 million in the second quarter.

Fourth-quarter revenue is expected to range between $385 million and $400 million. Driving this growth are investments in advertising technology and artificial intelligence.

Reddit’s Strategy for Growth

Reddit now has an AI-powered feature that translates posts into French, Spanish, Portuguese, Italian, and German. According to Huffman, machine translation increased user traffic fourfold over the last quarter. As such, the company will introduce the technology to about 30 countries by the end of next year.

“As Reddit becomes a truly global platform, we are focused on ensuring everyone, regardless of their language, can participate in and benefit from the communities on Reddit,” Huffman wrote in a letter to shareholders.

Reddit has also been looking to improve its ads business by utilizing generative AI. The social network launched an automated headline generator for sponsored posts, which makes it appear as if another Redditor had written them.

Reddit is also optimizing ad placements. It is increasing the number of ads within comment threads just underneath a user’s original post. This strategy increased conversation page views by 40% in the third quarter.