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Feb 23, 09:50 PM
Reddit Files for IPO Under $RDDT, Reports $90.8M Losses, 21% Revenue Growth
Economics
Business

Reddit Files for IPO Under $RDDT, Reports $90.8M Losses, 21% Revenue Growth

Authors
  • Forbes
  • TechCrunch
  • WIRED
48

Reddit has officially filed for its Initial Public Offering (IPO), revealing plans to list on the New York Stock Exchange under the ticker symbol $RDDT. The company's filing with the US Securities and Exchange Commission (SEC) has drawn significant attention for several reasons, including its financial performance, strategic partnerships, and potential risks. Reddit reported a loss of $90.8 million and a 21% revenue growth in 2023. A notable aspect of the IPO is Reddit's deal with Google on AI data harvesting, as well as its decision to allow active users to participate in the IPO, a move seen as an experiment. The company's CEO received a total compensation of $193M in 2023, while the COO made $92mm, highlighting the compensation disparity with volunteer moderators who manage the platform for free. Reddit's filing also lists the r/WallStreetBets subreddit as a key risk to its stock, citing the potential for market disruption similar to past events with stocks like GameStop and AMC. Furthermore, the company's reliance on Google for traffic and revenue, as well as its investment in cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and MATIC, are identified as significant factors in its business strategy.

Written with ChatGPT (GPT-4).

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