Reddit said it is shifting to a mainly logged-in experience to protect its data from AI scraping and open the way for lucrative licensing deals with model providers, as search referral traffic declines. In Q3, global daily active users were flat at 130.3 million, while U.S. DAU fell from 53.2 million to 50.7 million, down 2% year-over-year. Search referrals dropped by more than 1 million on average per week in October; if the trend continues, DAU could fall by a low-double-digit percentage next quarter. Still, revenue rose 53% to $895 million, ahead of about $875 million expected by Wall Street, and net income climbed 74% to $283 million. Advertising revenue grew 54% to $847 million, while non-advertising revenue, which includes AI data licensing, rose 35% to $48 million.
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