Reddit is planning to launch its IPO with the ticker RIDT soon, and here’s its S1 (DRHP).
Its reported revenue is up 20% YoY to $804M in 2023, with a net loss down 43% YoY to $90.8M, 73M DAUs, and a $3.42 global ARPU. It technically isn’t making any profits as of now, but it seems to have plans for its future growth prospects.
Here are a few important slides:
High-level Revenue breakdown:
Growth Strategy:
Users per month:
Reddit came into prominence in the context of stock markets when a group of Redditors openly pumped the stock Gamestop during the short squeeze saga, resulting in a major High-frequency trading firm, Citadel Securities, losing $2B and eventually closing its operations.
An interesting line that made me think was how the draft claims Reddit’s posts can be a good source for AI training models. A deal is already closed with Google for $60M.
AI content licensing can open a new revenue stream for social media companies.
What are your thoughts on this? Do you use Reddit regularly?