The IPO comes nearly two decades after Reddit's launch and will be a significant test for the platform, which still trails behind Facebook and Twitter in commercial success. The company was valued at $10bn in 2021, but it's unclear what valuation it will aim for in its share sale. Reddit is expected to sell nearly 10% of its shares in the IPO. The company also mentioned data licensing arrangements as a revenue stream, including a deal with Google to use its content for training AI models.
Key takeaways:
- Reddit has filed for an initial public offering with the Securities and Exchange Commission and plans to trade on the New York Stock Exchange under the ticker symbol “RDDT.”
- The company sustained $90.8m in losses in 2023, despite a revenue growth of roughly 21%. Its US average revenue per user was $3.42 for the last quarter of 2023, a decrease of 2% year over year.
- Reddit was valued at $10bn in a funding round in 2021 and is expected to seek a sale of nearly 10% of its shares in the IPO. The number of shares to be offered and the price range for the proposed offering have not yet been determined.
- Reddit has entered data licensing arrangements with an aggregate contract value of $203m in January 2024. It also struck a deal with Google to make its content available to train Google's AI models, a contract worth about $60m each year.