Reddit’s third-quarter earnings, launched on Tuesday, shocked buyers with report development and profitability.
Reddit reported a revenue for the primary time in its 19-year historical past, with a internet earnings of $29.9 million, or 16 cents a share, for the quarter in comparison with a internet lack of $7.4 million on the similar time final 12 months. Analysts forecasted a lack of seven cents a share for the quarter.
Income was up, growing 68% year-over-year to succeed in $348.4 million, higher than the $312.8 million analysts anticipated. Advert income drove the majority of the rise, contributing to $315.1 million of the general complete.
The earnings additionally confirmed that Reddit’s consumer base is rising, with 97.2 million folks visiting the location day by day within the third quarter, a report excessive and a virtually 50% enhance from the identical time final 12 months. Reddit shares had been up over 22% on Tuesday after the earnings announcement.
Associated: This is Why Reddit Turned Down an Acquisition Provide From Google in Its Early Days, In keeping with Cofounder Alexis Ohanian
“I am excited to share that Q3 was a landmark quarter for Reddit,” Reddit CEO Steve Huffman wrote in his quarterly letter to shareholders. He added later that “In 2024 to date, ‘Reddit’ was the sixth most Googled phrase within the U.S., underscoring that when persons are searching for solutions, recommendation, or group, they’re turning to Reddit.”
Reddit CEO Steve Huffman. Credit score: Greg Doherty/Selection by way of Getty Photos
Huffman acknowledged that Reddit began utilizing AI to translate content material on its web site into different languages, beginning with French within the first half of the 12 months. The location has now expanded the hassle to Spanish, Portuguese, Italian, and German, per the letter.
Going ahead, it should attempt to make the search expertise higher for folks looking out internally or these navigating to Reddit from an exterior search engine like Google, in accordance with the corporate.
Associated: Reddit Site visitors Practically Triples in 8 Months, Posts Rise to the High of Google Search
Reddit was up over 120% year-to-date on the time of writing.
