Reddit, the popular online forum, has revealed its current financial numbers and user base as it gears up to go public on the New York Stock Exchange under the ticker symbol RDDT. The filing with the US Securities and Exchange Commission indicates that Reddit currently boasts 267.5 million active weekly users and 73 million daily users, with an impressive 1 billion posts on the platform.
The company reported generating revenues of $804 million in 2023, with 98 percent of that coming from advertising. However, Reddit also disclosed that it operated at a loss, with a $90.8 million deficit for the same year. To boost revenue streams, Reddit announced plans to monetize its data through commerce solutions, in addition to advertising.
In a separate agreement with Google, Reddit has granted access to its Data API, with Google paying $60 million annually for this privilege. This partnership will allow Google’s AI models to train using content from Reddit’s posts.
Interestingly, Reddit also faced backlash for plans to charge developers for API access, prompting protests and subreddit shutdowns. The company aims to introduce new ways to monetize its data and provide revenue streams beyond advertising.
To engage its top users, Reddit plans to offer stock purchasing opportunities to top moderators and users with high karma scores. Approximately 75,000 elite users and moderators will be invited to buy a piece of the company, although the initial stock price remains undisclosed.
With these developments, Reddit’s imminent IPO launch is highly anticipated, as investors and users alike wait to see how the platform’s financial performance and user base will translate into stock market success.
