this post was submitted on 07 Jun 2023
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Where do you see this information on their profits?
At least for reddit, spez used saying it isn't currently profitable as a pity point in the ama today.
https://www.reddit.com/r/reddit/comments/145bram/addressing_the_community_about_changes_to_our_api/jnkd09c/?context=3
There isn't much public information because all those companies are private. But, various journalists have looked into things and declared it isn't profitable, for example:
https://www.ft.com/content/c4c01d86-85f5-49c8-9966-cbf935d834a2
Awesome. Thanks for the follow up. Crazy how hard it is to find. I’m sure their income is enough to pay them decent wages though. Not the moderators though, screw those people
The problem is that from day 1, Reddit was a Y-Combinator project, meaning it was VC backed, and the VCs want a big money-making exit. It looks like social media in general, and link aggregator website in particular are not great money-making ventures. A private company might just shrug and accept a small but steady profit. But, VCs want a big splashy money-making event, and they're willing to risk killing the company to achieve it.