NEW YORK (AP) — Reddit has made a profit for the first time as a public company.
The social platform claimed profit of $29.9 million, or 16 cents per share, for the period ending in September, and reported sales of $348.4 million, beating analysts' estimates of $312.8 million. The number of daily users of Reddit also increased to 97.2 million, a 47% increase from the same period last year. a company statement,
one in letter to shareholdersReddit CEO Steve Huffman said its new AI translation feature — which allows readers to convert posts between English, French, Spanish, Portuguese, Italian and German — will be particularly useful in countries like France, India and the Philippines. was the primary driver of user growth. , Huffman wrote that Reddit plans to expand the feature to more than 30 countries by 2025.
Huffman wrote, “So far in 2024, 'Reddit' was the sixth most Googled term in the US, underscoring that when people are looking for answers, advice or community, they turn to Reddit.” Let's turn towards.” “We saw this in real time when the White House came to Reddit to share critical information during the recent hurricane, and reached out to people in affected areas with timely updates.”
While advertising remains the company's main source of revenue, Reddit's earnings summary notes that Recent Data Licensing Agreements Starting to pay off financially. Both Google and OpenAI have signed deals with Reddit to train 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. Earlier, it had booked profits in Q1 2021 and Q4 2023.
Since the initial public offering, the stock has tripled, rising 42% to close at $116.05 on Wednesday.
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This story has been updated to correct that Reddit made its first profit since going public, not in its 20-year history.