Key facts
- Reddit is shifting to a primarily logged-in experience to protect data from AI scraping.
- The move aims to increase revenue amid declining U.S. daily active users.
- Global revenue rose 53% year-over-year to $895 million in Q3.
- U.S. daily active users fell 2% year-over-year to 50.7 million.
- Search traffic referrals dropped by over 1 million per week in October.
Reddit is transitioning to a primarily logged-in user experience as AI-powered search reduces its reliance on traditional search engines like Google. The company aims to protect its data from AI scraping and secure lucrative licensing deals with AI model providers. This strategic shift also seeks to bolster revenue amidst a decline in U.S. daily active users. Global revenue increased 53% year-over-year to $895 million in the third quarter, with net income rising 74% to $283 million. Advertising revenue grew 54% to $847 million, while non-advertising revenue, including AI data licensing, increased 35% to $48 million. Despite a 2% year-over-year drop in U.S. daily active users, average revenue per user in the U.S. rose 53% to $13.82.