Looking ahead, CEO Steve Huffman highlighted plans for new product developments, global expansion, and growth in advertising as key focuses for Reddit.

A new AI translation feature, supporting multiple languages, has contributed to user growth and is set to expand to over 30 countries by 2025.

While Reddit's AI partnerships have provided immediate revenue benefits, analysts caution that they may not drive long-term growth.

Following the earnings announcement, Reddit's stock prices increased by 35%, capturing the attention of investors.

On October 30, 2024, Reddit experienced a brief outage affecting thousands of users, but normal operations resumed shortly after.

The global average revenue per user (ARPU) rose by 14% to $3.58, indicating a solid foundation for future growth.

Reddit reported a remarkable revenue of $348.4 million for the third quarter, a 68% increase from the previous year, surpassing analyst expectations of $312.2 million.

In a landmark achievement, Reddit posted its first profit in nearly two decades, earning $29.9 million, or 16 cents per share, for the quarter ending in September 2024.

Citigroup analysts attributed the revenue surge primarily to a 56% growth in advertising revenue, driven by increased user engagement and more efficient ad placements.

This financial turnaround follows Reddit's decision to charge for API access, which was implemented in May 2023 and marked a significant shift towards profitability.

However, this move faced criticism as it negatively impacted many third-party apps, leading to closures.

The platform's daily active users surged to 97.2 million, reflecting a 47% year-over-year growth.