For a long time, Reddit has been a paradox within tech companies. Very popular, the social network never managed to generate profits from its activity. Now listed on the stock exchange, the company is feeling pressure from investors and must show its credentials. This is precisely what it did by presenting spectacular quarterly results this Tuesday, October 29.
$30 million in profits
For the first time in its history, the company posted a profit of $29.9 million during the third quarter. In detail, its turnover stands at $384.4 million over the last three months, an increase of 68%.
315 million in advertising revenue
This spectacular result is mainly made possible by Reddit’s advertising activity, which reached a historic level of $315.1 million this last quarter. This total is boosted by certain agreements signed with sports leagues.
100 million users
Reddit announces that it has reached 97.2 million daily users on average over the last three months, an increase of 47% compared to the same period last year. Some days, the site even crossed the symbolic milestone of 100 million.
To explain it, Reddit CEO Steve Huffman cites AI translation features that translate posts into different languages, including French, Spanish, Italian, Portuguese and German. . He also promises to extend this tool to 30 countries by 2025.
Very satisfied, the manager comments as follows: “Reddit’s influence continues to grow across the Internet. Reddit was the sixth most searched word on Google in the United States, highlighting that when people are looking for answers, advice, or community, they turn to Reddit. » Enough to encourage him to further improve the social network’s search tools.
Juicy deals on AI
Among the other reasons which explain these flattering results for Reddit, we can also cite partnerships established with OpenAI and Google under which these companies can recover forum discussions to train their AI. We talked to you about it here and there. Recently, smart people have also used the word to try to poison the Mountain View firm’s search engine.
What to remember:
- Reddit posts spectacular numbers for the last quarter
- The company makes a profit for the first time in its history
- It managed to exceed 100 million users on certain days, which is again a record
