- cross-posted to:
- technology@lemmit.online
- cross-posted to:
- technology@lemmit.online
Social media company Reddit filed its IPO prospectus with the Securities and Exchange Commission on Thursday after a yearslong run-up. The company plans to trade on the New York Stock Exchange under the ticker symbol “RDDT.”
Reddit said it had $804 million in annual sales for 2023, up 20% from the $666.7 million it brought in the previous year, according to the filing.
The company said it has incurred net losses since its inception. It reported a net loss of $90.8 million for the year ended Dec. 31, 2023, compared to a net loss of $158.6 million the year prior.
Its market debut, expected in March, will mark the first major tech initial public offering of the year. It’s the first social media IPO since Pinterest went public in 2019.
Reddit first filed a confidential draft of its public offering prospectus with the Securities and Exchange Commission in December 2021.
There was another article today about them getting a contract from Google to train their AI on their content for millions a month. This should close the gap and lead to a possibly positive year for the first time ever this year.
They saw a 20% increase in revenue, likely due to consolidating people on their app, getting them the ad revenue boost. That impact is only a little over 6 months old. I’m curious what a year looks like.
The article I read said that Google will be paying 60 million dollars per year, so that still leaves them 30 million in the red considering the 90 million net loss of 2023.
If the 20% revenue boost was a result of the api changes, the difference may be made the difference of 6 vs 12 months of the increase. Also, other LLM data buyers may become customers now that they know it’s for sale and the approximate cost.
That’s actually not so bad, I still think they could have gotten more with that Google deal, at least 5x what they got, but it subs like Google is going to be boosting their traffic too which will likely be a benefit.