Reddit to require user accounts for access, testing outside the U.S. in Q4

Reddit plans to require all users to create accounts to access its platform, CEO Steve Huffman said with third-quarter results, tying the change to shrinking search-referral traffic from Google.

The company says search referrals fell by more than 1 million per week in October and that the shift is also meant to protect its data from AI scraping and open licensing deals with model providers, according to its earnings announcement.

Reddit will begin testing the requirement in select markets outside the U.S. in the fourth quarter. Huffman gave no specific timing for a global rollout, saying implementation would involve a lot of complexity. The company warned daily active users could decline by a low-double-digit percentage next quarter.

The company beat third-quarter estimates, with earnings of $1.40 per share against $1.35 expected and revenue of $895 million against $878 million. Its fourth-quarter revenue guidance of $1 billion to $1.03 billion fell below expectations, and shares dropped more than 11%.