Reddit’s Surge: User Growth Fuels First Profit in Years

Reddit finally cracks the code—turning a profit after bleeding cash for years. User growth isn’t just vanity metrics anymore; it’s paying the bills.

The Viral Engine

Forget ‘build it and they’ll come.’ Reddit built it, they came… and now advertisers are throwing money at the chaos. Daily active users? Up. Revenue? Up. The math works—this time.

Wall Street’s Cynical Bet

Of course, the suits will spin this as ‘community-driven innovation.’ Really, it’s another platform monetizing free labor (hello, unpaid mods) and eyeballs. But hey—profit is profit, right?

Reddit’s not out of the woods yet, but for once, the numbers don’t lie. Now watch every legacy media exec scramble to copy the playbook.

Key Takeaways

• Growth in its revenue base helped Reddit turn a profit and post better-than-expected results.
• The social media platform reported a 78% year-over-year increase in revenue, and 84% rise in ad revenue.
• Average daily active users grew 21%.

Shares of Reddit (RDDT) soared more than 15% Friday, a day after the social media platform turned a profit and beat revenue forecasts as it added more users.

The company reported GAAP earnings per share (EPS) of $0.45 after posting a loss per share of $0.06 the year before. That was well above the average estimate of analysts surveyed by Visible Alpha, as was the non-GAAP EPS of $0.91. Revenue grew 78% year-over-year to $499.6 million, while the Visible Alpha analysts were looking for $426.3 million. Advertising revenue jumped 84% to $465.3 million, also much more than expected.

Average daily active users increased 21% to 110.4 million, and average revenue per user gained 47% to $4.53.

CEO and co-founder Steve Huffman noted that this was Reddit's most-profitable quarter ever, saying that the results were "a testament to our work, our users, and the power of Reddit's communities." Huffman added that the firm got a boost through international expansion, explaining that its "machine translation is now live in 23 languages, unlocking Reddit for millions of people across Asia, Europe, and Latin America."

The company sees current-quarter revenue in a range of $535 million to $545 million, and adjusted EBITDA of $185 million to $195 million.

The news sent Reddit shares into positive territory for the year. 

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