this post was submitted on 01 Nov 2024
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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.

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[–] merthyr1831@lemmy.ml 19 points 3 days ago (1 children)

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@hexbear.net 8 points 3 days ago (1 children)

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

[–] merthyr1831@lemmy.ml 2 points 1 day ago

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