Reddit, the popular internet discussion 'community of communities,' has filed a registration statement for its long-awaited initial public offering. The number of shares to be offered and the price range for the proposed offering have not yet been determined. Reddit intends to list its Class A common stock on the New York Stock Exchange under the ticker symbol 'RDDT'.
In the S-1 filing with the SEC, Reddit reported 2023 revenue of $804.0 million, up 21% year over year, and a net loss of $90.8 million in 2023, compared with a $158.6 million loss the year prior. In December 2023, Reddit had more than 500 million visitors and in the fourth quarter had an average of 73.1 million daily active unique users worldwide. The company had 2,013 full-time employees as of the end of 2023, up from 1,942 a year earlier.
Reddit is offering users who have 'meaningfully contributed to Reddit community programs,' including moderators, the opportunity to buy shares in the company at the IPO price. This privilege is typically reserved for employees, 'friends and family,' or investors. Eligible users and moderators who created an account on or before Jan. 1, 2024, may participate in the directed share program, organized into six phased 'priority tiers' based on their contributions to Reddit. Shares purchased through this program will not be subject to lock-up agreements or market standoff restrictions.
Reddit CEO Steve Huffman expressed his excitement for the company's future in the S-1 filing, highlighting growth opportunities in advertising, monetizing commerce on the platform, and licensing data. The filing also listed competitors such as Google, Meta (including Facebook, Instagram, Threads, and WhatsApp), YouTube, Wikipedia, Snap, X (formerly Twitter), Pinterest, TikTok, Roblox, Discord, and Twitch.
Reddit, known as 'the front page of the internet,' currently carries the slogan 'Dive into anything.' The company underwent a restructuring in June, eliminating 90 jobs to position itself to break even in 2024. Originally acquired by Condé Nast in 2006 and later spun out in 2011, Reddit's parent company, Advance Publications, retains a minority stake. Investors in Reddit include Fidelity, Vy Capital, China's Tencent, Sequoia Capital, and Andreessen Horowitz.
