{"id":45650,"date":"2024-11-04T15:45:03","date_gmt":"2024-11-04T20:45:03","guid":{"rendered":"https:\/\/mjtsai.com\/blog\/?p=45650"},"modified":"2024-11-04T15:45:03","modified_gmt":"2024-11-04T20:45:03","slug":"reddit-is-finally-profitable","status":"publish","type":"post","link":"https:\/\/mjtsai.com\/blog\/2024\/11\/04\/reddit-is-finally-profitable\/","title":{"rendered":"Reddit Is Finally Profitable"},"content":{"rendered":"

Emma Roth<\/a> (Slashdot<\/a>):<\/p>\n

Reddit just turned a profit for the first time. As part of its third quarter earnings results released on Tuesday<\/a>, the company reported a profit of $29.9 million, along with $348.4 million in revenue — a 68 percent increase year over year.<\/p>

[…]<\/p>

Reddit’s advertising revenue grew to $315.1 million, while “other” revenue reached $33.2 million on account of “data licensing agreements signed earlier this year.” Both Google and OpenAI<\/a> have cut deals with Reddit<\/a> to train their AI models on its posts.<\/p>

In a letter to shareholders<\/a>, Reddit CEO Steve Huffman attributed the recent increase in users to the platform’s AI-powered translation feature. Reddit started letting users translate posts into French<\/a> last year before expanding to Spanish, Portuguese, Italian, and German.<\/p><\/blockquote>\n\n

Dare Obasanjo<\/a>:<\/p>\n

\n

Both Reddit and Netflix reaping massive financial benefits from user hostile moves like banning 3rd party apps and blocking password sharing is setting an interesting precedent.<\/p>\n<\/blockquote>\n\n

Jack Raines<\/a>:<\/p>\n

Reddit’s daily users increased 47% year over year, and there was an interesting anecdote in their shareholder letter:<\/p>

“Reddit” was the sixth most Googled word in the US. With AI slop increasingly prevalent, Reddit is largely seen as an source of human information and stories.<\/p><\/blockquote>\n\n

Previously:<\/p>\n