The San Francisco-based social platform earned $29.9 million, or 16 cents per share, for the period led to September and reported revenue of $348.4 million, an amount below analysts' forecasts surpassed $312.8 million. Reddit also increased its every day users to 97.2 million, a 47% increase from the identical period last 12 months, in accordance with an organization statement.
In a letter to shareholders, Reddit CEO Steve Huffman said its latest AI translation feature — which allows readers to convert posts between English, French, Spanish, Portuguese, Italian and German — was a key driver of user growth, particularly internationally in countries similar to France, India and the Philippines. Huffman wrote that Reddit plans to expand this feature to over 30 countries by 2025.
“So far in 2024, 'Reddit' was the sixth most Googled word in the US, underscoring that people looking for answers, advice or community turn to Reddit,” Huffman wrote. “We saw this in real time when the White House came to Reddit to share critical information during recent hurricanes and reach people in affected areas with timely updates.”
While the corporate's promoting stays its primary income, Reddit notes in its earnings report that its recent data licensing deals are beginning to repay financially. Both Google and OpenAI have signed deals with Reddit to coach their artificial intelligence models on its content.
Reddit, whose investors include OpenAI CEO Sam Altman, went public in March at $34 per share. The stock has since tripled, rising 34% to $110.20 in morning trading on Wednesday.
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