Reddit reveals $90.8M losses, 21% revenue growth in 2023, as it prepares for IPO

Reddit reveals $90.

• Reddit Inc. has filed for an IPO with plans to list on the New York Stock Exchange under the ticker symbol RDDT, with prominent investment banks as lead underwriters.
• OpenAI CEO Sam Altman emerges as one of Reddit’s major shareholders, owning 8.7% of the company’s outstanding shares through affiliated entities.
• Despite experiencing a 20% revenue growth to $804 million in 2023, Reddit continues to face challenges, reporting a net loss of $90.8 million for the year, although it maintains a significant user base and high website traffic in the United States.

On February 22, local time, social media platform Reddit Inc. submitted its IPO prospectus to the U.S. Securities and Exchange Commission. The company plans to list on the New York Stock Exchange under the ticker symbol RDDT, with Morgan Stanley, Goldman Sachs, JPMorgan, and Bank of America serving as lead underwriters.

According to regulatory filings, OpenAI CEO Sam Altman is one of the company’s largest shareholders, with entities associated with Altman holding 8.7% of Reddit’s outstanding shares, including 7,894,456 Class A shares and 11.4 million Class B shares.

Also read: Reddit to discontinue blockchain-based community points reward program

Reddit has a solid position in the global social media market

The documents show that Reddit had revenue of $804 million in 2023, a 20% increase from the previous year’s $666.7 million. The social networking company’s core business relies on online advertising sales through its website and mobile applications. This strong growth underscores Reddit’s solid position in the global social media market and the steady growth of its advertising revenue.

The net loss narrowed compared to the last year

Reddit has consistently incurred net losses since its inception. The company reported a net loss of $90.8 million in 2023, compared to $158.6 million in the previous year. Although the net loss narrowed compared to the $158.6 million net loss in the same period last year, this figure still highlights the company’s challenges on the path to profitability.

Reddit states that it has over 100,000 communities, 73 million daily active users, and 267 million monthly active users. According to data from analytics company Semrush, Reddit is one of the largest websites in the United States in terms of traffic.