Reddit is getting bigger.

Reddit just turned a profit for the first time. As part of its third quarter earnings results released on Tuesday, the company reported a profit of $29.9 million, along with $348.4 million in revenue — a 68 percent increase year over year.

The company hasn’t been profitable at any point in its nearly 20-year history. Since going public, Reddit lost $575 million during its first quarter on the market, but it decreased that loss to $10 million last quarter and is now finally in the black.

Reddit’s advertising revenue grew to $315.1 million, while “other” revenue reached $33.2 million on account of “data licensing agreements signed earlier this year.” Both Google and OpenAI have cut deals with Reddit to train their AI models on its posts.

  • merthyr1831@lemmy.mlEnglish
    17·
    6 days ago

    So they sold their data for a one off payment and stuffed the platform with so many bots and astroturf accounts that it is effectively poisoned against being a reliable source for future AI data licensing.

    Yeah they’re so fucking cooked hahahahaha

    • Tom742 [any]@hexbear.netEnglish
      8·
      6 days ago

      This is also “profitable” with some big air quotes, they still have to make back all of that money they lost.

      • merthyr1831@lemmy.mlEnglish
        2·
        4 days ago

        Yeah most of these venture capitalists are gonna start unloading debt onto Spez the moment the forecasts start going down again