or the first time since its launching, the Reddit social media forum recorded a profit in the Q3 Reddit earnings report released yesterday. The Reddit
company has recorded a profit of $29.9 million and a revenue of $348.4 million which represents a 68% increase year over year.
Reddit was launched nearly 20 years ago, but until this year has not been able to make a profit. After the first quarter in the market, the social media forum managed to lose $575 million, and in the last quarter, it decreased to $10 million.
Over the past few months, Reddit experienced a growth to 97.2 million daily users, which represents a 47% boost compared with the same period last year. But this user number surpassed 100 million users during Q3.
In the Q3 earnings report, the advertising Q3 revenue increased to $315.1 million, and other Q3 revenues reached $33.2 million Reddit earnings based on the data licensing agreements that were signed earlier this year. So, in this agreement, Google and OpenAI made arrangements with Reddit to train their AI models on different forum posts.
The CEO of Reddit, Steve Huffman stated in a letter to the shareholders that the recent increase in active users is based on the recent forum update which used AI-powered technology to translate all the forum’s posts. Recently, the social media platform started to allow users to translate various posts into French language last year, expanding this feature over time with more languages such as Spanish, Portuguese, Italian, and German.
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“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.”, Steve Huffman stated.
The social media forum decided to go public earlier this year and made various changes to create more Reddit revenue such as advertising with professional sports leagues, or upgrading some of the features to make the forum more engaging for users. It seems that these approaches have finally succeeded since in this Q3 earnings report, Reddit revenue recorded a significant profit.
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