FILE - Reddit CEO Steve Huffman is seen on the New York Stock Exchange trading floor, prior to his company's IPO, March. 21, 2024. (AP Photo/Yuki Iwamura, File)
YINEW YORK (AP) — Reddit has turned a profit for the first time as a public company.
The social platform claimed a profit of $29.9 million, or 16 cents per share, 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% increase from the same time last year, according to .
In a , Reddit CEO Steve Huffman said its new AI translation feature — 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 feature 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 community, they’re turning to Reddit,” Huffman wrote. “We saw this play out in real-time when the White House came to Reddit to share critical information during recent hurricanes, reaching people in the affected areas with timely updates.”
While the company's advertising remains its main source of revenue, Reddit's earnings summary notes its 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 public in March at $34 a share. Before that, it booked profits in the first quarter of 2021 and fourth quarter of 2023.
Since the initial public offering, the stock has tripled, surging 42% to close Wednesday at $116.05.
___
This story has been updated to correct that Reddit turned its first profit since going public, not in its 20-year history.
The ɫtv Press. All rights reserved.
Get the latest from ɫtvNews in your inbox. Select the emails you're interested in below.
Canada is entering a new era of nation-building. From clean-energy corridors and c…
Sorry, an error occurred.
Already Subscribed!
Cancel anytime
Thank you .
Your account has been registered, and you are now logged in.
Check your email for details.
Submitting this form below will send a message to your email with a link to change your password.
An email message containing instructions on how to reset your password has been sent to the email address listed on your account.
No promotional rates found.
Secure & Encrypted
Thank you.
Your gift purchase was successful! Your purchase was successful, and you are now logged in.
| Rate: | |
| Begins: | |
| Transaction ID: |
A receipt was sent to your email.
