Reddit reveals $91M loss for 2023 as it files for an IPO
NY Post
Reddit disclosed $90.8 million in losses and revenue growth of roughly 21% in 2023 on Thursday, as the social media company made public its IPO filing ahead of a planned stock market debut in March.
The initial public offering filing comes almost two decades after Reddit’s launch and will be a major test for the platform that still lags the commercial success of social media contemporaries such as Facebook and Twitter, now known as X.
Reddit said it had an average of 73.1 million daily active users and 267.5 million weekly active users in the three months ended Dec. 31, 2023. The company said over 100,000 active communities used its platform, which had 1 billion cumulative posts.
In the filing, Reddit reported a net loss of $90.8 million for the year ended Dec. 31 and logged revenue growth of $804 million, up from $666.7 million a year earlier.
Reddit was valued at $10 billion in a funding round in 2021 and it is unclear what valuation the company will aim for during its share sale in the coming weeks. It is expected to seek a sale of nearly 10% of its shares in the IPO, Reuters reported earlier.
The IPO filing showed CEO Steven Huffman holds Class B common stock that is issuable upon achieving a vesting condition – that Reddit attains $5-billion market capitalization valuation after the offering.
