- Reddit Q3 report revenue rose 68% to $348.4M
- It’s the first time Reddit has shown a profit in 19 years.
What happened
Reddit announces 2024 third quarter result, showing net profit of $29.9M first time ever in 19 years. Reddit’s income climbed by 68% year on year to $348.4 million, with ad revenue up 56% to $315.1 million and other revenue up 547% to $33.2 million.
They also expect revenue in the fourth quarter of 2024 to be between $385 million and $400 million, with adjusted EBITDA 2 in the range of $110 million to $125 million.
“It was another strong quarter for Reddit and our communities as we achieved important milestones, including new levels of user traffic, revenue growth, and profitability,” said Steve Huffman, Co-Founder and CEO of Reddit. “Reddit continues to be one of the most visited and trusted sites in the world with opportunities available to us that aren’t available to most companies.”
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Why it’s important
Reddit’s first profitable year after 19 years reflects the platform’s potential to generate sustainable revenue. This milestone proves that, despite years of operating losses, Reddit can convert its large user base into financial gains. The accomplishment is crucial for attracting investors, as it demonstrates that Reddit is more than just a popular social network—it’s also a viable business. Profitability reassures stakeholders that Reddit’s business model can fund growth without solely relying on outside funding.
Reddit’s success signals the value of its advertising and premium membership models, which contribute to this profitability. In a competitive social media landscape, earning a profit validates Reddit’s unique approach to content and community engagement. Achieving profitability also gives Reddit the flexibility to improve its platform, invest in new features, and build partnerships. Overall, Reddit’s first profitable year strengthens its position in the tech industry, inspiring confidence among users and investors alike, continue to provide a community for their loyal users.
