• by Colin Kirkland , Yesterday

In its latest performance update, Reddit reported another strong revenue quarter, increasing its total intake by 68% and its ad intake by 74% compared to the previous year. 

Following Q2 -- in which Reddit showed its fastest quarterly growth rate since 2022, increasing its total revenue by 78% -- the now-public forum-style social network brought in $585 billion in Q3 due to renewed interest among advertisers.

The company’s ad revenue jumped up to $549 million this quarter, increasing 74% year-over-year.

Over the past year, Reddit has continued to refine its ad stack, expanding Dynamic Product Ads and updating its Ads Manager to appeal to smaller businesses, while launching Community Intelligence -- an AI-powered engine that powers products and insights based on data collected from user posts over the past 20 years.

Reddit co-founder and CEO Steve Huffman also stated that Reddit Pro tools for publishers have attracted more news outlets to the platform, allowing them to track how their stories are being shared by Redditors. 

Advertising is responsible for 94% of Reddit’s revenue intake.

According to data from Semrush, Reddit is currently the second-most-visited website in the U.S., with 444 million people using the platform each week and 116 million people showing up daily -- an year-over-year increase of 19%.

Although overall user growth slowed for Reddit in Q2, the platform drove more attention in the U.S. while seeing a more sizable boom in international markets. It reported 64.4 million international daily active users in Q3, exceeding Bloomberg’s estimated 62.2 million.

Moving forward, Reddit is attempting to improve its search function through AI-powered tools to help users better navigate the platform and find answers and content they are seeking.