Reddit, founded in 2005, is preparing for its first major tech initial public offering (IPO) of the year, with no date or share price set yet. The company reported 73 million unique daily visits on average in Q4 2023 and over 100,000 active online communities. Revenue grew 20% to $804 million in 2023, up from $667 million in 2022, and the net loss was $90.8 million, down from a loss of $159 million the previous year. Reddit plans to reserve some of its IPO shares for eligible users and moderators who have contributed to the platform.
Key takeaways:
- Sam Altman, CEO of OpenAI, is the third largest shareholder of Reddit, owning 8.7% of the company and having a voting power of 9.2%.
- Reddit is planning for an initial public offering (IPO), and if the company's valuation reaches at least $5 billion, Altman's stake would be worth around $435 million.
- Reddit has recently formed a partnership with Google, allowing the search engine giant to train its AI models on Reddit’s user-generated content.
- Reddit's revenue grew 20% to $804 million in 2023, up from roughly $667 million in 2022, and it reported a net loss of $90.8 million, down from a loss of about $159 million the previous year.