The company reported a net loss of $91 million on revenue of $804 million in 2023, an improvement from a net loss of about $159 million on revenue of $667 million a year earlier. Reddit's IPO will be led by Morgan Stanley, Goldman Sachs Group Inc., JPMorgan Chase & Co. and Bank of America Corp., and the shares will trade on the New York Stock Exchange under the symbol RDDT. The company is also exploring data licensing to third parties, including for AI training, with contracts worth $203 million already in place.
Key takeaways:
- Reddit Inc. and its investors are planning to raise up to $748 million in an initial public offering (IPO), making it one of the largest IPOs this year. They plan to sell 22 million shares for $31 to $34 each, aiming for a valuation of up to $6.5 billion.
- Reddit is setting aside about 1.76 million shares in the IPO for users and moderators who created accounts before Jan. 1. These shares won't be subject to a lockup period, allowing owners to sell them on the opening day of trading.
- Reddit reported a net loss of $91 million on revenue of $804 million in 2023, an improvement from a net loss of about $159 million on revenue of $667 million a year earlier. The company's largest shareholder is Advance Magazine Publishers Inc., part of the Newhouse family publishing empire that owns Conde Nast.
- Reddit is in the early stages of allowing third parties to license access to data on the platform, including to train artificial intelligence models. In January, it entered into data licensing arrangements with an aggregate contract value of $203 million and expects a minimum of $66.4 million of revenue from those agreements this year.