Reddit has filed to take the company public

Social media platform, Reddit, has confidentially filed to take the company public.
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3 min read
Reddit

Reddit has confidentially filed to take the company public. At the current stage, further detail is not known, including how many shares the company will sell or the price of those shares.

In August 2021, Reddit also announced it would raise $700 million at a valuation of $10 billion. In Q2 Reddit made over $100 million in advertising revenue for the first time, which was almost a 200% increase for that quarter. But it is known that Reddit is still not profitable, some say the company may hit a profit in the coming years, even as early as 2022.

Reddit primarily generates its income in 3 ways:

  • Reddit Premium subscriptions: this gives users an ad free experience, access to some communites and free coins every month.
  • Coins: Reddit users can purchase coins which can then be used towards giving awards on posts credted by other users. The purpose of this is to give some form of recognition to what others have contributed on the platform.
  • Advertising: For everyone but Reddit Premium users, the platform has advertisements in many places.

It is currently unknown how many of the 430 million + Reddit users are currently subscribed to Reddit premium as Reddit does not release information on this, the same goes for how much users spend on purchasing Coins.

As of January 2021, the social media platform claims to have over 50 million unique daily active users, over 100,000 active communities and over 50 billion monthly views. The company was founded in 2005 and in recent times has seen a surge in popularity including becoming home to many popular communities like ‘WallStreetBets’.

WallStreetBets was where the famous ‘meme stock’ investing began, which saw stocks such as GameStop and AMC surging in price this year. The subreddit is still extremely active.

In the recently released ‘Reddit Recap’ for 2021, the company has detailed some statistics from the platform:

  • Over 366 million posts were created, up 19% year over year.
  • As of Novemeber 9th 2021, Reddit has seen 2.3 billion total comments, an increase of 12% year over year.
  • WallStreetBets was home to the top 3 most upvoted posts. The top upvoted post had 431,000+ upvotes.
  • Cryptocurrency was the most view topic of the year, with Dogecoin being the most popular community. Overall crypto has been mentioned 6.6 million times on Reddit this year.

Reddit has also provided recaps for individual users which can be viewed on the app or website. You can read the full platform-wide Reddit Recap here.

More detail is yet to come on Reddit going public since at this stage only a confidential filing has been made.

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