Reddit CEO Steve Huffman announced that the platform will move to "a logged-in-only experience," according to a shareholder letter released today about Q3 performance.
The company will begin testing the login requirement in select non-US markets during Q4, using those tests to shape what a fully logged-in Reddit will look like globally. Huffman said the shift will improve ad targeting and user engagement while protecting Reddit's data and helping the company adapt to global regulations.
Huffman noted that most major ad-based platforms have already made this transition. "We are excited and moving quickly," he wrote.
The login requirement comes as Reddit faces declining search referral traffic. Huffman reported that search traffic "was down meaningfully in Q3," with the largest decline coming from logged-out and web users. In October alone, search traffic dropped by more than 1 million referrals per week on average. If this trend continues, Huffman projected that total daily active unique users could fall in Q4 by a low-double-digit percentage from Reddit's current base of 130 million DAUqs.
Huffman emphasized that logged-in and app users represent Reddit's most valuable users and primary focus. "Logged-in and app DAUq are our most valuable users, and they are our primary focus," he wrote.
Reddit has already tested login requirements on desktop since at least August and recently required logins for Old.Reddit.com. The company is also testing a requirement that mobile web users access Reddit through its mobile apps, with Huffman noting that currently only 13 percent of eligible mobile web users see the app conversion prompt, leaving room to expand the test.
In Q3, Reddit reported net income of $283 million (up 74 percent year over year) on revenue of $895 million (up 53 percent year over year). Average daily active unique users increased 12 percent year over year in Q3.