The Morning Ledger: Reddit Sets Its Sights on Turning a Profit, Boosted by Targeted Ads

Good morning. Reddit is getting closer to turning a profit, driven in part by more targeted advertising, after the social-media platform made its public market debut earlier this year, reports Kristin Broughton .

San Francisco-based Reddit set a goal to turn a profit once it was public—first on an adjusted basis, excluding certain nonrecurring and other charges, and then as calculated under generally accepted accounting principles, or GAAP. On the first goal, Reddit has met its mark. On the second, the math is coming together, Chief Financial Officer Drew Vollero said. Reddit narrowed its net loss during the second quarter to $10.1 million, from $41.1 million a year earlier. Revenue, meanwhile, climbed 54%, to $281.2 million. Analysts expect the company to turn a quarterly profit in the next year or so, boosted by more targeted advertising, as well as revenue from data-licensing agreements with companies including Google and OpenAI.

What’s happening is the financials are inflecting and becoming very profitable, very quickly.

—Reddit Chief Financial Officer Drew Vollero

The Day Ahead

Earnings

• Cintas
• Jefferies Financial Group
• Micron Technology

Economic Indicators

The Census Bureau reports new residential sales data for August.

Q&A

GE Vernova CEO Appraises Nuclear Power Prospects, Offshore Wind Business

The nuclear power industry is set to add “gigawatts upon gigawatts” of capacity heading into the 2030s, while offshore wind in the U.S. sorts out its business model, according to GE Vernova CEO Scott Strazik.

Strazik leads General Electric’s spinoff of its power and wind business, which started trading as a stand-alone company in April. The energy company has emerged at a crossroads for the nuclear energy industry as companies contend with managing aging reactors while exploring newer reactor technologies—along with alternative energy sources such as onshore and offshore wind energy.

Strazik joined the Journal House in New York on Tuesday during Climate Week NYC to discuss renewable energy and the future of the power grid. The conversation focused on the future of various energy sectors, including nuclear power and onshore and offshore wind, as well as recent reported layoffs at GE Vernova, the nation’s largest wind turbine manufacturer.

Following are edited excerpts from his conversation with Ken Brown, The Wall Street Journal’s bureau chief of climate and financial enterprise. To watch the full conversation, click here.

The promise of nuclear power

WSJ: So nuclear is interesting, because we’ve heard about it all the time. The question is, is it going to come too late?

Strazik: I do think in the early 2030s this will start to scale. We’re going to be adding gigawatts upon gigawatts of nuclear capacity every year. So it’s going to take this decade to really validate the technology, get a few of the first projects cut into COD, or commercial operation date. And I’m highly confident in the 2030s this is going to be a very material part of the equation for us.

The offshore wind industry

WSJ: So where is your offshore wind business?

Strazik: I’d start by just taking a step back and saying, when we look at the energy transition over the long term, we see an important role for offshore wind, much like we talked about SMR, or small modular reactors, playing a role in the next decade. Much like carbon capture, offshore wind is important for the world. That said, as you outlined, we had a tough summer in offshore wind.

✏️ Do you agree with GE Vernova’s CEO and his outlook for nuclear power and offshore wind energy? Join the conversation at the bottom of the story here.

— Walden Siew

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About Us

The Wall Street Journal's CFO Journal offers corporate leaders and professionals CFO analysis, advice and commentary to make informed decisions. We cover topics including corporate tax accounting, regulation, capital markets, management and strategy.

Follow us on X @WSJCFO. The WSJ CFO Journal Team comprises reporters Kristin Broughton, Mark Maurer and Jennifer Williams, and Bureau Chief Walden Siew.

You can reach us by replying to any newsletter, or email Walden at walden.siew@wsj.com.