- Reddit files for long-awaited IPO after hitting over $800 million in revenue in 2023.
- The company remains unprofitable but saw a rare net profit in Q4 2023.
- Reddit plans an unorthodox IPO by reserving shares for 75,000 users before public trading.
Reddit’s IPO filing
Reddit has filed for an initial public offering, potentially kicking off a wave of tech IPOs in 2024.
While revenue grew to over $800 million in 2023, Reddit remains unprofitable on a GAAP and adjusted basis. However, it posted a rare net profit in Q4 2023.
Reddit plans an unorthodox IPO by reserving shares for 75,000 users at the IPO price before public trading begins.
The company also struck a $60 million annual data deal with Google, providing a new revenue stream from AI models.
Unorthodox IPO plans
Reddit touts strong user growth, claiming over 500 million monthly visitors in December 2023 alone.
It aims to capitalize on this by growing advertising, which it claims has a $1.4 trillion total addressable market excluding China and Russia.
If Reddit prices well and trades strongly, it could encourage other late-stage private tech firms to pursue IPOs. This would benefit venture investors seeking liquidity after years of waiting.
