Reddit plans to restrict content access for non-logged-in users, scheduled for testing in the fourth quarter

Social forum platform Reddit (RDDT.US) stated that it plans to shift the user experience to a login account-based model to enhance user engagement and improve the advertising business that continues to drive robust company performance. Reddit CEO Steve Huffman announced on Thursday that the company will ultimately restrict the scope of content accessible to users without registered accounts. Reddit plans to begin testing different approaches in markets outside the United States in the fourth quarter. This strategy marks a significant shift for Reddit. For the past 20 years, the company has allowed users to browse its forums without registering an account. Chief Operating Officer Jen Wong acknowledged on Thursday that this move may restrict the platform’s reach in the short term, but in the long run, it will bring more growth opportunities. On Thursday, Reddit forecasted that quarterly sales will exceed 1 billion dollars for the first time. However, although the company expects fourth-quarter revenue to reach 1 billion to 1.03 billion dollars, this outlook falls short of Wall Street’s average expectation of 1.05 billion dollars.