Reddit Makes Official Filing to Go Public, Aims for NYSE Listing
Reddit has made significant strides in becoming a staple in the tech world, and it’s taking the next big step by filing with the Securities and Exchange Commission to go public. The move positions Reddit as the first major tech initial public offering (IPO) of the year, and it’s aiming for a New York Stock Exchange listing under the ticker symbol RDDT.
Founded in 2005 by Alexis Ohanian and Steve Huffman, Reddit has grown into one of the most visited websites in the U.S., boasting over 100,000 communities. Despite its popularity, Reddit has faced challenges in scaling its online advertising revenue to keep up with industry giants like Meta and Alphabet.
Financials: Reddit’s Revenue and Plans for Growth
In 2023, Reddit reported $804 million USD in revenue, marking a 20% increase from the previous year. However, despite this growth, the company continues to operate at a loss, with a net loss of $90.8 million USD for the year ending December 31, 2023.
In its Form S-1 filing, Steve Huffman expressed Reddit’s mission to become a stronger company through going public while also providing meaningful benefits to its community. The company aims to reflect users’ sense of ownership by allowing some power users, including those who have contributed significantly to Reddit’s success, the chance to buy its IPO stock before bigger investors.
Looking Ahead: New Revenue Avenues and User Economy
As part of its plan for future growth and profitability, Reddit is exploring new revenue avenues such as enhancing search capabilities and leveraging artificial intelligence to boost its advertising business. The company is also venturing into data licensing business by allowing third parties access to search its platform data. In fact, a key partnership with Google was announced on Thursday granting Google access to Reddit’s data at a price of $60 million USD.
Additionally, plans are underway for fostering a user economy on Reddit by potentially introducing features that enable the exchange of goods and services similar to platforms like Roblox and eBay. This will be supported by offering three classes of stock with varying voting rights and implementing a directed share program allowing community moderators to participate in the IPO.
Stay Tuned: Reddit’s IPO Launch
Back in January, reports surfaced that Reddit was planning to launch its IPO in March – which has now come true. Keep an eye out for further updates as we follow this exciting development.
As always we’ll be keeping you updated on all things tech – stay tuned!
