In a remarkable turn of events, Reddit’s shares soared nearly 40% in early morning trading after the company announced its first-ever profit in nearly 20 years. For the period ending in September, Reddit reported a net profit of $29.9 million, equating to 16 cents per share, alongside sales of $348.4 million—surpassing analysts’ expectations of $312.8 million.
This impressive financial performance was bolstered by a substantial increase in daily users, which reached 97.2 million, marking a 47% rise from the previous year. CEO Steve Huffman attributed this growth to the platform’s new AI translation feature, enabling posts to be converted between multiple languages, including English, French, Spanish, Portuguese, Italian, and German. This feature has proven particularly popular in international markets such as France, India, and the Philippines, with plans to expand to over 30 countries by 2025.
Huffman highlighted Reddit’s prominence in digital culture, noting that it was the sixth most Googled word in the U.S. in 2024. He emphasized the platform’s role as a vital resource for community engagement, evidenced by the White House’s recent use of Reddit to disseminate critical information during natural disasters.
As Reddit continues to innovate and attract a diverse user base, its promising financial results suggest a bright future for the platform and its shareholders.
