Reddit's user base continues to grow, with the number of global daily active unique users climbing 27% in the three-month period ended December 31, 2023. The company believes it has the opportunity to grow revenue through advertising and is in the early stages of using machine learning and prediction models to better match supply and demand for its advertisers. The company estimates its total addressable market globally from advertising alone to be $1.4 trillion, excluding China and Russia.
Key takeaways:
- Reddit has filed to go public and is expected to kick off 2024's IPO cycle. Despite growing revenues, the company remains unprofitable.
- In an unorthodox move, Reddit plans to reserve an undetermined number of shares for 75,000 of its users, allowing them to buy shares at the IPO price before trading begins.
- Reddit has reached a deal with Google to allow the search giant to use its data, a deal valued at around $60 million per year, which could provide a significant boost to its 2024 results.
- Reddit is focusing on growing its revenue through advertising, estimating its total addressable market globally from advertising alone to be $1.4 trillion.