Report: Xiaohongshu’s profit is expected to triple to $3 billion this year

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Xiaohongshu's profitability is accelerating, with this year's profits expected to reach $3 billion.

On September 5, according to media reports, Xiaohongshu recently informed investors that its full-year profit forecast suggests profits could triple this year to $3 billion. The report pointed out that in recent transactions, the company's valuation soared to $31 billion.

Previously, media reported that Xiaohongshu's profit exceeded $1 billion in 2024. Like many privately held companies, Xiaohongshu is under no obligation to disclose its financial status and is not subject to independent auditing. However, many startups share their performance with supporters and potential investors.

The company now stands to establish significant advantages in the social media platform sector. The estimated $3 billion profit is about 50% higher than Pinterest's projected earnings in 2024 and far surpasses competitors such as Snap. To date, Snap has yet to achieve full-year profitability.

Xiaohongshu Vigorously Developing E-commerce Business

In addition to advertising sales as its core source of revenue, Xiaohongshu is vigorously developing its e-commerce business.

The company is enhancing its app’s e-commerce functions through partnerships with e-commerce giants such as Alibaba Group and JD.com.

Previously, according to WallstreetCN Flash News, on August 28, Xiaohongshu held an e-commerce media briefing. At the event, the head of the trading marketplace, Lai Ke, shared his thoughts on the newly launched Xiaohongshu "Marketplace." He stated:

The number of users shopping on Xiaohongshu is rapidly increasing, especially among young users. Therefore, Xiaohongshu has added the "Marketplace" as a primary portal to further enhance users' intent to purchase.

Data released at the event showed that among Xiaohongshu’s monthly active e-commerce buyers, those born after 1995 account for 70%. Xiaohongshu is becoming a gathering place for a new generation of consumers.

According to data, Xiaohongshu currently has over 350 million monthly active users, with 170 million users seeking to make purchases each month within the community.

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