Feb 22, 2024 - Business

Reddit has finally filed for its IPO

Illustration of a glowing computer in the dark with the Reddit Alien on screen looking menacing. 

Illustration: Aïda Amer/Axios

Reddit, the online forum, has officially filed to go public on the New York Stock Exchange, in a large deal that will be a major test to the U.S. IPO market.

Why it matters: The company has been hoping to list since confidentially filing in 2021, but the market downturn forced it to pump the brakes.

The big picture: The offering makes Reddit among the largest social media companies to go public since Snap's listing in 2017 and Pinterest's float after that.

  • Reddit's IPO will also be a test for the potential return of tech and media IPOs this year.
  • The company was valued at $10 billion when it raised funding in 2021, though advisors are reportedly suggesting an IPO valuation of about $5 billion, according to Bloomberg.

By the numbers: Reddit brought in $804 million in revenue in 2023, with a net loss of just under $91 million.

  • In 2022, it had $667 million in revenue, and a net loss of almost $159 million.
  • It has more than 100,000 active communities; 73.1 million average daily active uniques; 267 million average weekly active uniques; and 1 billion cumulative posts.
  • The San Francisco-based company's largest shareholders include Advance Publications (Condé Nast's owner), Fidelity, Quiet Capital, Sam Altman, Tencent, and Vy Capital.

The intrigue: Reddit is reserving IPO shares it will make available for purchase to some of its most engaged users, though this initial document doesn't specify the amount.

  • It's also setting aside about 1.3 million of its Class A common stock to fund "community-related programs that empower Redditors to bring their ideas to life."

Zoom in: Morgan Stanley, Goldman Sachs, JPMorgan, and Bank of America are leading the offering. The company will trade under the symbol RDDT.

Zoom out: The company reportedly signed an exclusive deal this week giving Google the ability to use Reddit's data to train its artificial intelligence models for $60 million a year, according to Reuters.

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