It sounds like they are profiting. They just aren't having high enough profits that Conde Nast is willing to cut into said profits to either spend more on servers to speed it up or hire another engineer.
Probably the situation is this: Advertising isn't very lucrative on Reddit, so Nast has told Reddit management that they must come up with some plan to steepen the profit curve, or they're toast.
And this is what they've come up with.