What impacted Reddit's net profit in Q3 2024?

Reddit's net profit in Q3 2024 was $29.85 million. Reddit's net profit in Q3 2024 was impacted by several key factors:

1. Revenue Growth: Reddit's revenue grew significantly, with a projected third-quarter revenue that surpassed Wall Street's estimates. This growth was driven by robust digital ad spending and a rebounding digital ad market, indicating a resurgence in advertiser interest and engagement on the platform.
2. Moderator Policy Changes: Reddit introduced new rules requiring moderators to submit requests for changing community types, such as switching from public to private or NSFW. These changes aimed to prevent disruptions and protect platform rules, which might have had an impact on user behavior and ad placement, potentially affecting revenue.
3. AI-Driven Features: Reddit launched AI-driven features like automatic post and comment translation, which could have increased operational costs and impacted net profit. However, these features also expanded Reddit's reach to a broader user base, potentially increasing revenue in the long term.
4. Stock Market Dynamics: As a publicly traded company, Reddit's stock price and investor sentiment can influence its financial performance. The stock experienced a decline in extended trading, which could have affected net profit if it led to decreased investor confidence or changes in stock-based compensation.

In conclusion, Reddit's net profit in Q3 2024 was positively impacted by strong revenue growth and robust user engagement, but was also influenced by operational changes, the introduction of new AI-driven features, and stock market dynamics.