Reddit filed for an initial public offering (IPO) with the SEC on Thursday. “The company will trade on the New York Stock Exchange under the ticker symbol 'RDDT,'” CNBC reported. From the report: Scheduled to make its market debut in March, it will be the first major tech initial public offering of the year. This is Pinterest's first social media IPO since it went public in 2019. According to Reddit, filings show annual revenue of $804 million in 2023, up 20% from $666.7 million the year before. The social networking company's core business relies on online advertising sales resulting from its website and mobile apps.
The company, founded in 2005 by technology entrepreneurs Alexis Ohanian and Steve Huffman, said it has had a net loss since its inception. Our net loss for the year ended December 31, 2023 was $90.8 million, compared to a net loss of $158.6 million for the prior year period. […] Reddit plans to leverage artificial intelligence to improve its advertising business, hoping to open up new revenue channels by providing tools and incentives to “continuously create, improve, and drive commerce.” He said he is doing so. We are also in the early stages of developing and monetizing a data licensing business that allows third parties to access and search data on our platform.
For example, Google on Thursday announced an expanded partnership with Reddit. This will allow the search giant to access the company's data and use it for things like training AI models. Regarding its data licensing business, Reddit said, “In January 2024, we entered into a certain data licensing agreement with a total contract value of $203 million and a period of 2 to 3 years.'' “We expect to recognize at least $66.4 million in revenue for the year ending December 31, 2024, and the remainder of the year.” On Wednesday, Reddit gave its 75,000 most loyal users a share of the IPO stock. announced that it plans to sell the division.