Financial Milestones
reported a profit of $29.9 million for the period ending in September, marking its first profitable quarter since its inception nearly two decades ago. The company also exceeded sales expectations with $348.4 million, a 68% increase year over year.
The company's stock has seen significant growth, tripling since its IPO in March, and reaching as high as $110.20 in morning trading, reflecting investor optimism after the earnings announcement.
Growth Drivers and Future Projections
Reddit's user growth to 97.2 million daily users, a 47% increase, has been attributed to its new AI translation feature and revamped AMA product, which expanded its reach internationally and enhanced user engagement.
Looking forward, Reddit plans to continue its expansion by introducing the AI translation feature to over 30 countries by 2025 and expects fourth-quarter revenue to be between $385 million and $400 million, indicating a strong growth trajectory.