When did Reddit go public and become profitable?

Reddit went public in 2024 and became profitable for the first time in its history that same year.

How many daily users does Reddit have?

The platform now attracts more than 120 million daily users across over 100,000 active communities.

What percentage of Reddit's revenue comes from advertising?

In its latest quarterly results, 94% of Reddit's revenue came from advertising.

Which AI companies has Reddit made licensing deals with?

In 2024, Reddit signed licensing deals with Google and OpenAI, granting them legal access to the platform's archive of conversations for AI training and products.

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Reddit's COO targets 1 billion users as the platform bets on AI licensing deals and authentic human conversation to grow beyond its niche origins.

Fortune AI19h ago5 min read

Key takeaway

Reddit has turned profitable for the first time following its 2024 public listing, powered by growth to more than 120 million daily users and advertising revenue that now accounts for 94% of total revenue. The company has also signed licensing deals with Google and OpenAI to monetize its archive of human conversations for AI training. COO Jen Wong says Reddit aims to reach 1 billion users, but preserving the authentic, human-centered conversations that attract users, advertisers, and AI companies alike will be critical to sustained growth.

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3 Key Points

What happened
Reddit went public in 2024 and became profitable for the first time in its history, driven by growth in users and advertising revenue. The platform now attracts more than 120 million daily users across over 100,000 active communities. The company has also signed licensing deals with Google and OpenAI in 2024, creating a new revenue stream by selling legal access to its archive of conversations for AI training and products.
Why it matters
Reddit's value lies in its reputation for authentic, human-generated conversation at a time when users increasingly seek trustworthy recommendations over AI-generated content and SEO-driven websites. The licensing deals represent a shift in how social platforms monetize—selling the conversations themselves as a product, not just advertising space. However, the company faces a balancing act: if AI-generated content infiltrates Reddit or users feel their unpaid contributions are being exploited, it could undermine the authenticity that makes both the platform and its archive valuable.
What to watch
Wong states the company's goal is 1 billion users, positioning Reddit as still in early stages of monetization and product development. A key challenge will be whether volunteer moderators—who are not on Reddit's payroll and operate independently—will support commercialization efforts without prioritizing the company's business goals over their communities' values.

FAQ

When did Reddit go public and become profitable?: Reddit went public in 2024 and became profitable for the first time in its history that same year.
How many daily users does Reddit have?: The platform now attracts more than 120 million daily users across over 100,000 active communities.
What percentage of Reddit's revenue comes from advertising?: In its latest quarterly results, 94% of Reddit's revenue came from advertising.
Which AI companies has Reddit made licensing deals with?: In 2024, Reddit signed licensing deals with Google and OpenAI, granting them legal access to the platform's archive of conversations for AI training and products.

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