Reddit plans to test requiring people outside the U.S. to log in before accessing its platform, a significant change for a service long open to anonymous browsing. CEO Steve Huffman linked the move to a sharp decline in referrals from Google, as AI Overviews and other AI features alter how search directs people to websites. Reddit has not set a date for a broader rollout or decided what logged-out visitors will still be able to view. Its strategy is to build direct visits, app use and logged-in activity, which are more valuable for ad targeting and less dependent on search traffic.
The announcement came alongside third-quarter results that beat expectations: revenue was $895 million and earnings per share were $1.40. Revenue rose 53% year over year, while daily active unique users increased 12% to 130.3 million, below analyst forecasts; U.S. daily users fell 2% to 50.7 million. Average revenue per user exceeded expectations, and data-licensing revenue grew 35% to $48 million. However, Reddit forecast fourth-quarter revenue of $1 billion to $1.03 billion, short of the $1.05 billion analysts expected, and its shares fell more than 15%. Huffman said the company will keep spending on marketing to counter weaker search referrals and is still negotiating with Google over its data-licensing agreement.
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