Reddit Achieves First Profit with AI-Driven Revenue Surge

The social media platform's revenue soared 68% as user growth and AI initiatives fueled profitability.

Reddit reported a net profit of $29.9 million for the third quarter, marking its first profitable quarter since going public.
The company's revenue reached $348.4 million, surpassing analyst expectations and reflecting a 68% increase from the previous year.
Daily active users on Reddit grew by 47% year-over-year, totaling 97.2 million, driven by AI-powered translation features.
Licensing deals with Google and OpenAI contributed significantly to revenue growth, particularly in the 'other revenue' category.
Reddit forecasts fourth-quarter revenue between $385 million and $400 million, exceeding Wall Street estimates.