Reddit Hits First Profit as AI Drives Explosive Growth [Video]

For the first time in its nearly 20-year history, Reddit has posted a profit, marking a significant milestone for the platform that began as a community-driven website in 2005.

According to a statement released by Reddit, the company reported a net profit of $29.9 million, or 16 cents per share, in the quarter ending September, with revenue reaching $348.4 million.

This performance exceeded the $312.8 million revenue forecast by analysts, signaling a period of robust growth fueled by innovative AI initiatives and expanding user engagement.

Reddit CEO Steve Huffman and company employees celebrate on the New York Stock Exchange trading floor, before his company’s IPO, Mar. 21, 2024. On Wednesday, the social media platform posted a $29.9 million profit; its…Yuki Iwamura/AP Photo

AI Translation and User Engagement Boost

Central to Reddit’s recent success has been the platform’s new AI translation feature, which enables posts to be converted between six languages, including English, French, Spanish, and German.

According to Reddit CEO Steve Huffman…

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