Reddit reported a quarterly profit for the first time in its 20-year history, stating a profit of $29.9m and nearly 100 million monthly users, a remarkable increase.
CEO Steve Huffman attributed the increase in users to the platform's new AI-driven translation feature, which translates English posts into multiple languages. This expansion aims to further attract diverse user bases.
Analysts noted that Reddit's revenue of $348.4m, a 68% increase year over year, outperformed expectations, thanks largely to AI content licensing deals with Google and OpenAI.
While Reddit's AI partnerships have significantly boosted revenue, analysts like Jeremy Goldman caution that these are more of a stabilizing factor than a sustainable source of long-term growth.
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