Reddit posts its first profitable quarter as a public company

On October 29, 2024, Reddit reported third-quarter results showing GAAP net income of $29.9 million on revenue of $348.4 million, its first profitable quarter and a milestone the company had not reached in roughly two decades of operation. Revenue rose about 68% year over year, driven by a 56% increase in advertising revenue to $315.1 million and a 547% surge in 'other' revenue to $33.2 million, a category that included the new AI data-licensing deals with Google and OpenAI. The result reversed a net loss of $7.4 million in the prior-year quarter, yielding a net margin of about 8.6%.

The quarter also showed record engagement, with daily active uniques reaching roughly 97 million, up nearly 50% year over year. The profit validated the strategy Reddit had pursued through its March IPO: combining advertising growth, AI content-licensing revenue, and tighter cost discipline. Investors responded positively, and the milestone helped reframe Reddit from a perennially unprofitable internet forum into a viable public company, setting the stage for record revenue and its first full profitable stretch in 2025.