Reddit unexpectedly turned a profit in the third quarter of the 2024 fiscal year. The online platform reported earnings per share (EPS) of $0.16, significantly better than the -$0.077 expected by analysts and last year's value of -$0.13.

The revenue increased by nearly 68% compared to the previous year, reaching 348.35 million USD, surpassing the projected 312.1 million USD and the previous year's level of 207.5 million USD. This revenue increase indicates higher user activity and improved monetization strategies, which investors responded to positively.

In after-hours trading on the NYSE, the market responded immediately to the figures: The Reddit stock jumped by an impressive 19.88% to $97.99 at times. This price movement reflects investors' confidence in the company's sustainable growth potential despite previous challenges in monetization and user retention.

The positive results in the third quarter underline that Reddit has successfully optimized its business models and tapped into new revenue streams. In particular, the increased integration of advertising platforms and premium services may have significantly contributed to this success.

Despite impressive growth, margins and future projects remain key issues for investors. Analysts continue to closely monitor how Reddit will further increase its profitability while maintaining its position in the highly competitive social media market.