Since its founding in 2005, Reddit has raised over $1.3 billion from investors and reported revenues of $804 million in 2023, a 21% increase from the previous year. The company expects similar growth in 2024. Despite its user growth and revenue, Reddit has operated at a loss each year. The company recently entered a $60 million a year deal with Google to train AI models and hosts approximately 100,000 forums, gaining mainstream attention for its role in the "meme stock" phenomenon.
Key takeaways:
- Reddit, co-founded by CEO Steve Huffman and Alexis Ohanian, is going public on the New York Stock Exchange under the ticker symbol RDDT, with a targeted share price of $31 to $34, valuing the company up to $6.4 billion.
- The company is offering 74,000 of its active moderators and users the opportunity to purchase stock at the price set the day before the company goes public.
- Reddit has raised more than $1.3 billion from investors since its founding and its 2023 revenues totaled $804 million, up 21% year over year. However, the company has run at a loss each year.
- The U.S. Federal Trade Commission has opened an inquiry into Reddit's AI data licensing business, which the company expects to bring in more than $200 million in revenue over the next few years.