Reddit’s IPO filing reveals $90.8 million losses, 21% revenue growth in 2023
In Reddit’s recently disclosed IPO filing, the platform unveiled a staggering $90.8 million in losses alongside a substantial revenue growth of about 21% in 2023. This disclosure comes as Reddit prepares for its much-anticipated stock market debut in March, almost two decades after its inception.
Despite its immense popularity, Reddit has yet to reach the same commercial success as its social media counterparts, such as Facebook and Twitter (now X). The IPO filing indicates a net loss of $90.8 million for the year ending Dec. 31, with revenue climbing to $804 million from $666.7 million in the previous year.
With Reddit’s valuation at $10 billion following a funding round in 2021, the company’s upcoming IPO launch is generating significant buzz. It plans to offer nearly 10% of its shares to the public in the share sale. Alongside this, Reddit has reportedly struck a deal with Google’s Alphabet to provide its content for the tech giant’s AI models, with an estimated annual value of $60 million.
As Reddit gears up for its IPO, it has enlisted Morgan Stanley and Goldman Sachs as lead underwriters, signaling a strong push towards its stock market listing. The move comes at a time when the U.S. IPO market is showing signs of recovery amid improving economic conditions.
Having initially filed for the IPO in late 2021, Reddit faced delays due to challenging economic circumstances and the underperformance of tech stocks. However, with the market outlook becoming more favorable, Reddit is now poised to make its mark with one of the most highly anticipated IPOs in recent years.
As Reddit’s IPO unfolds, industry experts will be closely watching to see how the platform navigates the public market and whether it can harness its massive user base to drive sustainable growth and profitability.
