Reddit Turns Profit for the First Time Ever, Stock Skyrockets By 42%

Reddit
Photo by Brett Jordan on Unsplash

Forum-style social media platform Reddit overwhelmingly beat the analysts’ estimates with its third-quarter earnings while reporting a profit for the first time ever. This caused the company’s stock to skyrocket by 42% on Wednesday.

Reddit had revenue of $348.4 million for the third quarter of fiscal 2024, marking a 68% year-over-year increase. The analysts, on the other hand, expected the company to report revenue of $312.8 million.

For the first time since it was found in 2005, Reddit also had a quarterly profit. It ended Q3 with a net income of $29.9 million and earnings per share of $0.16, while analysts predicted a $0.07 loss per share. In the same period last year, Reddit had $7.4 million in net loss.

Reddit also saw a substantial growth in user activity. Around 97 million unique users visited the site on a daily basis, which is the most ever in a single quarter for the social media network and a 50% year-over-year improvement.

“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,” Reddit CEO Steve Huffman said in a press release.

Reddit’s stock jumped by 42% on Wednesday, closing at $116.05 per share compared to Tuesday’s closing price of $81.74. The company’s shares are now 130.08% up year-to-date.

Brian D
Brian loves music and tries to go to a music festival every summer. When he's not listening to music, he writes about movies, food, art, and anything newsy.