Reddit Moves Toward Logged-In Experience to Shield Data From AI Scraping as Search Traffic Falls

Reddit is shifting to a primarily logged-in experience, a move designed to protect its data from AI scraping and strengthen its position in licensing deals with model providers, the company announced during its third-quarter earnings call.

The change comes as AI-powered search reduces traffic to websites. Global daily active users were flat at 130.3 million, while U.S. users fell to 50.7 million from 53.2 million in the previous quarter. Reddit said search referrals dropped by more than 1 million a week on average in October and warned daily users could fall by a low-double-digit percentage next quarter if the trend continues.

Monetization nonetheless remains strong. Revenue rose 53% to $895 million, beating expectations, and net income climbed 74% to $283 million. Non-advertising revenue, including AI data licensing, grew 35% to $48 million. Logged-in users typically offer richer signals for ad targeting and personalization, including its new algorithmic For You feed.

Co-founder and CEO Steve Huffman said the change is significant for someone shaped by the open internet but is the right decision for the platform and business. He acknowledged open questions about where boundaries should lie. Testing begins in select non-U.S. markets in the fourth quarter, with anonymity and incognito browsing preserved.