Business Reddit files to list IPO on NYSE under the ticker RDDT - Reddit are trying to sell stocks to jannies too while spez made 200 million last year lmfao

• Reddit on Thursday filed to go public.
• Its market debut will mark the first major tech initial public offering of the year and the first social media IPO since Pinterest went public in 2019.
• The social media company, founded in 2005 by technology entrepreneurs Alexis Ohanian and Steve Huffman, has raised about $1.3 billion in funding and has a post valuation of $10 billion, according to deal-tracking service PitchBook.

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.”

Its market debut, expected in March, will be the first major tech initial public offering of the year. It’s the first social media IPO since Pinterest went public in 2019.

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 social networking company’s core business is reliant on online advertising sales stemming from its website and mobile app.

The company, founded in 2005 by technology entrepreneurs Alexis Ohanian and Steve Huffman, 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 with a net loss of $158.6 million the year prior.

Reddit is one of the most-visited websites in the U.S., according to analytics firm Semrush, but it has struggled to build an online advertising business comparable to those of tech giants such as Facebook parent Meta and Google parent Alphabet.

Reddit has more than 100,000 communities, 73 million average daily active uniques, or DAUq, and 267 million average weekly active uniques, according to the filing. As of the fourth quarter of 2023, Reddit’s U.S. average revenue per user, or ARPU, was $5.51, down from $5.92 from the previous year. The company’s global ARPU was $3.42, which was a 2% year-over-year decline from $3.49.

Reddit said that by 2027 it estimates the “total addressable market globally from advertising, excluding China and Russia, to be $1.4 trillion.” Reddit said the current addressable advertising market is $1.0 trillion, sans China and Russia.

The company is building on its search capabilities and plans to “more fully address the $750 billion opportunity in search advertising that S&P Global Market Intelligence estimates the market to be in 2027.”

Reddit said it plans to use artificial intelligence to improve its ad business and that it expects to open new revenue channels by offering tools and incentives to “drive continued creation, improvements, and commerce.“

It’s also in the early stages of developing and monetizing a data-licensing business in which third parties would be allowed to access and search data on its platform.

For example, Google on Thursday announced an expanded partnership with Reddit that will give the search giant access to the company’s data to, among other uses, train its AI models.

In June, several prominent Reddit moderators locked subreddits as part of a blackout to protest the company’s decision to increase the price some third-party developers pay to use its application programming interface, or API, depending on their usage. At the time, Reddit said the pricing change was necessary because many big tech companies were using data to train large language models.

“In January 2024, we entered into certain data licensing arrangements with an aggregate contract value of $203.0 million and terms ranging from two to three years,” Reddit said, regarding its data-licensing business. “We expect a minimum of $66.4 million of revenue to be recognized during the year ending December 31, 2024 and the remaining thereafter.”

Reddit appears to be investigating a business strategy akin to that of Roblox, which derives the bulk of its revenue from digital sales on its social gaming platform, and online retailer eBay. The company wants to introduce more features to create a user economy that could include games, according to the filing. Reddit said there are currently informal exchanges of physical and digital goods and services that may create another line of revenue.

Reddit will offer three classes of stock with different voting shares. Class A stock will come with one vote per share. Class B shares will come with 10 votes per share and can be converted at any time into one share of Class A stock. Class C shares have no voting rights.

Reddit said that its non-employed moderators, known as Redditors, can participate in the company’s IPO offering through its “directed share program.” Because of this, Reddit said there’s a possibility of “individual investors, retail or otherwise constituting a larger proportion of the investors participating in this offering than is typical for an initial public offering.” Reddit said it had an average of more than 60,000 daily active moderators in December 2023.

“These factors could cause volatility in the market price of our Class A common stock,” the company warned.

Regarding risks, Reddit said its daily active unique figures “may fluctuate or decrease in one or more markets from time to time due to various factors.”

“For example, although we saw increased growth in our user base during the COVID-19 pandemic, we experienced lower levels of DAUq growth and declining DAUq as the effects of the COVID-19 pandemic subsided,” the filing said. “DAUq has also declined in the past in periods following usage peaks surrounding certain worldwide events, such as the onset of the conflict between Russia and Ukraine in the three months ended March 31, 2022, and cultural trends, including video game releases, such as Elden Ring in the three months ended March 31, 2022, and traffic related to r/wallstreetbets in the three months ended March 31, 2021.”

Reddit first filed a confidential draft of its public offering prospectus with the Securities and Exchange Commission in December 2021. The company has an employee headcount of 2,013 as of December 31, 2023, which was up from 1,942 during the previous year.

Reddit has raised about $1.3 billion in funding and has a post valuation of $10 billion, according to deal-tracking service PitchBook. Publishing giant Condé Nast bought Reddit in 2006. Reddit spun out of Conde Nast’s parent company, Advance Magazine Publishers, in 2011.

Advance now owns 34% of voting power. Other notable shareholders include Tencent and Sam Altman, CEO of startup OpenAI.

https://www.cnbc.com/2024/02/22/reddit-files-to-list-ipo-on-nyse-under-the-ticker-rddt.html (Archive)

Message some jannies received trying to sell stocks to them:

Hello,

TL;DR: – you're invited to a special program that lets redditors purchase stock at the same price as institutional investors when we IPO. Details about eligibility and next steps follow. This (long, dense) message has all the info we can provide due to legal restrictions.

As you may have heard, Reddit has taken steps toward becoming a publicly traded company with the initial public filing of our registration statement with the U.S. Securities and Exchange Commission on February 22, 2024. Yes, it's happening.

And because you have helped make Reddit what it is today, you now have the opportunity to become Reddit owners at the same price as institutional investors.

We're offering a Directed Share Program (“DSP”) that invites eligible users and moderators who have contributed to Reddit to participate in our initial public offering (“IPO”). (Including you!)

Program Requirements​

While being selected to pre-register is the first step, there are certain legal and regulatory requirements to participate in the DSP that are outside of Reddit's control. Bear with us here…

To be eligible for the DSP, you must:

• Be a current U.S. resident;

• You will be asked to provide the DSP Administrator a valid social security or permanent resident number, along with other personal information. Reddit will not have access to this data.

• Please note that U.S. residents using a VPN may face application limitations if the VPN locates them in certain non-U.S. jurisdictions.

• Be at least 18 years old;

• Provide your full legal name and an email address;

• Not be a current or former Reddit employee (FTE).

When the DSP launches (a few weeks after pre-registration ends), individuals who have been confirmed for the program will be contacted by our external DSP Administrator. You will then be asked to provide additional information securely to the DSP Administrator to confirm your eligibility.

How to pre-register​

The number of people who can participate in the DSP is limited; we will offer this opportunity to as many redditors as we are able to accommodate. If capacity is reached before the deadline, you will be added to the waitlist. Based on demand, we may also limit the number of shares available.

If you are interested in being part of Reddit's DSP, please go to https://reddit.com/dsp on desktop to complete the pre-registration form. If you are one of the confirmed participants, we will follow up with an email with more details in the coming weeks. You can also refer to the Frequently Asked Questions for more information. Due to regulatory restrictions (yeah… we know…), we are not able to respond to further inquiries or questions.

Pre-registering does not guarantee that you will be invited or able to participate in the DSP; it also does not obligate you to purchase shares.

As with any investment opportunity, you should make an individual decision based on your own personal circumstances and risk tolerance. Therefore, we urge you to review the preliminary prospectus, when available, before deciding whether to invest in Reddit.

The deadline for pre-registering for the DSP is March 5, 2024. If capacity is reached before the deadline, you will be added to the waitlist.

What happens next?​

While there won't be a confirmation email immediately after you pre-register, everyone who pre-registers will receive an email in the coming weeks from “noreply@redditmail.com” telling them whether they can proceed with the next steps for the DSP.

This is an automated message (beep, boop, beep) and does not receive replies. Please refer to the FAQ for more information. Per our lawyercats, we are not able to respond to further inquiries or questions.

Prospectus and Important Disclosures

*The offering will be made only by means of a prospectus. When available, a copy of the preliminary prospectus related to the offering may be obtained from:

Morgan Stanley & Co. LLC, Prospectus Department, 180 Varick Street, New York, New York 10014, or email: prospectus@morganstanley.com; Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, New York 10282, telephone: 1-866-471-2526, facsimile: 212-902-9316, or email: prospectus-ny@ny.email.gs.com; J.P. Morgan Securities LLC, Attention/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, telephone: 1-866-803-9204, or email: prospectus-eq_fi@jpmorgan.com; and BofA Securities, Inc., NC1-022-02-25, 201 North Tryon Street, Charlotte, North Carolina 28255-0001, Attention: Prospectus Department, telephone: 1-800-294-1322, or email: dg.prospectus_requests@bofa.com.*

A registration statement relating to these securities has been filed with the U.S. Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This notification shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

No offer to buy the securities can be accepted and no part of the purchase price can be received until the registration statement has become effective, and any such offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time prior to the notice of its acceptance given after the effective date. An indication of interest in response to this notification will involve no obligation or commitment of any kind.

Spez made almost 200 million last year too:



And it's important for the jannies to do it for free:



SEC filing attached and can be found here: https://www.sec.gov/Archives/edgar/data/1713445/000162828024006294/reddits-1q423.htm (Archive)

 

[Disc]

I don't necessarily understand why because while I hate reddit and I am going to assume most of you do to. I don't know what they would hate about reddit. Reddit provides a safe space from the chuds.

The mods hate it because the only reason it stays that way is because of their very active interference. As much as they like the idea of having that power, there's just constant things going on that they have to deal with. Both in their heads, and to a lesser degree in reality, if even just the true powermods were unable to interact for a week reddit would immediately have a right-wing resurgence that'd take years to stifle, and all the powermod's dirty laundry will spill everywhere. Two weeks and they'd break containment and start tearing the whole hugbox down.

Moreover, the only jannies people occasionally like are the ones that are paid; the ones that aren't a doing this for other reasons and they will abuse it, that's literally the only reason to mod. So mods are also constantly, constantly having to defend and justify themselves to the people who largely feel they'd be better off without them.

Might be nice and warm inside the hugbox, but the time they spend trying to fortify the hugbox far outweighs the time they truly get to enjoy it.

Definitely been reading too much warhammer lore, but it's hilariously comparable; the whole thing's such a massive shitshow that the moment anyone seriously tries to relax everything they're trying to maintain will fall apart. Only instead of hyper-genetically optimised tactical and logistical geniuses who have armies of unstoppable supersoldiers at their beck and call, they're a bunch of mentally deranged evolutionary dead-ends defending something most of them only kinda-sorta-half-believe in as a shadow of a half-remembered golden age, who among their populace are either barely understood to even exist, begrudgingly tolerated to outright despised by anyone without their powers who has to interact with them, or have to be exhaustively brainwashed from a young age to actually give them a modicum of respect.

...Okay the latter half applies to the primarchs as much as the former but you get my point.

 

[Harbinger of Kali Yuga]

Both in their heads, and to a lesser degree in reality, if even just the true powermods were unable to interact for a week reddit would immediately have a right-wing resurgence that'd take years to stifle,

this is untrue, the admins of reddit since the election cycle of 2016 actively sought to change the userbase culture in response to trump. i've been saying it a million times, the culture of reddit is directly controlled and created by the admins and the anti-right wing stuff comes from the very top. the admins did this in a lot of ways, pulling lots of tricks, banning people out of the blue for trumped up reasons, banning subreddits, etc. the powermods are even there with the blessing of the admins and the powermods are all in slack with the admins chatting in some form or another. Admins can do subtle things to change a forum's culture, just like how null has tweaked KF's over the years (much to the positive, IMO).

 

[CHARizard]

Admins can do subtle things to change a forum's culture, just like how null has tweaked KF's over the years (much to the positive, IMO).

The cheese war of '23 has shown that null has no control.

 

[Disc]

this is untrue, the admins of reddit since the election cycle of 2016 actively sought to change the userbase culture in response to trump. i've been saying it a million times, the culture of reddit is directly controlled and created by the admins and the anti-right wing stuff comes from the very top. the admins did this in a lot of ways, pulling lots of tricks, banning people out of the blue for trumped up reasons, banning subreddits, etc. the powermods are even there with the blessing of the admins and the powermods are all in slack with the admins chatting in some form or another. Admins can do subtle things to change a forum's culture, just like how null has tweaked KF's over the years (much to the positive, IMO).

That doesn't change what I mean. my point is that stuff requires active, constant interference to keep it that way. If they didn't do that, it might take time, but the chuds would be able to build a few strongholds, and their grip would begin to slip. At least in their own heads, they constantly have to maintain their power or they'll lose their hugbox.

 

[Harbinger of Kali Yuga]

That doesn't change what I mean. my point is that stuff requires active, constant interference to keep it that way. If they didn't do that, it might take time, but the chuds would be able to build a few strongholds, and their grip would begin to slip. At least in their own heads, they constantly have to maintain their power or they'll lose their hugbox.

yes, but the point is the locus of control is on the admins. you get rid of the current mods, they find new mods, simple as. Chuds can't build a foothold because the admins are actively preventing them. Like I've said I've known long time mods of subs the admins didn't like that broke no rules that found themselves banned with no message or explanation simply because they wanted them gone even though they couldn't find a pretense to do it.. Even if the power mods were gone, the admins would be heavily banning and censoring conservatives or something else... and in fact the admins and their bots/AI have been doing a lot more deleting on reddit.

The truth about reddit is that it's entirely inorganic. The organic user-driven nature is fake. They even seeded the site with bots and fake profiles from the start to get people to join. You are seeing what they want you to see when you go there.

 

[Disc]

yes, but the point is the locus of control is on the admins. you get rid of the current mods, they find new mods, simple as. Chuds can't build a foothold because the admins are actively preventing them. Like I've said I've known long time mods of subs the admins didn't like that broke no rules that found themselves banned with no message or explanation simply because they wanted them gone even though they couldn't find a pretense to do it.. Even if the power mods were gone, the admins would be heavily banning and censoring conservatives or something else... and in fact the admins and their bots/AI have been doing a lot more deleting on reddit.

The truth about reddit is that it's entirely inorganic. The organic user-driven nature is fake. They even seeded the site with bots and fake profiles from the start to get people to join. You are seeing what they want you to see when you go there.

Mate, the original question I was answering was why jannies hate Reddit even though they do a significant amount of running it. Your replies boil down to an 'acshually', but the point i'm trying to make is that keeping reddit exclusively left leaning is the exhaustive work that makes the jannies hate reddit, and all the supposed benefits of their power just makes everyone else hate them more.
The point is not who controls reddit or who decides who controls reddit. The point is that reddit needs to be actively and constantly controlled to get a shadow of the outcome they truly want, and that means jannies spend 90% of their time interacting with the things they're trying to remove from their subreddits, rather than enjoying the fruits of their labour.

 

[Cheeseknife]

@Harbinger of Kali Yuga @Disc

Guys, I just realized, you're both right.

 

[HumptiDouji]

He looks like he's trying out for a hair metal band

Mötley Trüün
(I'll leave the rewriting of Dr. Feelgood's lyrics into something ROGD related to someone else)

I know of at least one reddit powermod who is a director of engineering for a well known payment processor.

There was also Ms. Maxwell.

 

[NoReturn]

What I want to know is why the fuck are all these "editorials" dicking Aaron Swartz from reddits founder list? Checked a few writeups, and ZILCH. No trace of him.

Correct me if I'm wrong, but is he not a founder? Huffman turned into a spook in record timing.

Because they are absolute pieces of shit avoiding any mention of him as that means talking about what happened to him. He was truly an important man, creating RSS, Creative Commons, Markdown and lending his name and mind to many projects and causes in tech. Regardless of what may be made of his politics, when it comes to information transparency and sharing, he was important.

Then at age 26 he was brought up on trumped up charges for mass downloading academic journals using a computer in an unlocked closet. He faced 35 years in prison and a million dollar fine or a plea. He didn't want to plead guilty. He then committed suicide.

This is NOT a tale that can see the light of day because it is a story that immediately radicalizes anyone who looks into it against the federal government. Child rapists and murderers routinely face less time.

Aaron is largely forgotten by history because to confront what happened raises all kinds of questions.

ALL CENSORSHIP IS TO BE DEPLORED.

Carmen Ortiz known "overkill" prosecutor is a piece of shit and I hope when she dies she rots in hell.

This is Ortiz, so if you ever see her on the street you know not to shake her hand.

Spoiler: Ugly bitch

https://www.youtube.com/watch?v=rocS4wnwy6c

 

[CHARizard]

https://www.forbes.com/sites/eriksherman/2024/02/26/reddits-ipo-filing-shows-lots-of-losses-after-nearly-20-years/?sh=49fdb3cf5a2a

https://archive.ph/TDluM

Reddit’s IPO Filing Shows Lots Of Losses After Nearly 20 Years​

So, Reddit finally filed for an IPO. After nearly 20 years, starting on its own, being acquired by Condé Nast Publications in 2006, spun out in 2011.

Having a long gestation as a private company getting investment dollars isn’t unusual today. For a number of years now, the trend has been to see increasingly long years of waiting to seek an exit so investors can allow the company to develop. To strengthen. To build a capability of making money.

Which makes Reddit’s filing — its S-1 using technical terms — so interesting is that it’s taken so long to still be losing money by the truckful. That’s $232,432.87 a day, or nearly $9,685 an hour.

Maybe this has something to do why Condé Nast’s parent, Advance Publications, waved goodbye to Reddit so many years ago.

The company calls itself an “emerging growth company” by the definition of the JOBS Act, and will continue to be until any one of the three following conditions happens: their revenue at least equals $1.235 billion; they reach the last day of the fiscal year following the fifth anniversary of the IPO offering; they reach the date on which during a previous three-year period in which they issue more than $1 billion in non-convertible debt; or, under the Exchange Act, they’re deemed a “large accelerated filer.”
There are 54 pages of risk factors, which, after reading many S-1 filings over the years, seems pretty long. One of the most notable is the sentence, “We have incurred substantial losses during our history and may never achieve profitability.”
There are companies that have said that in the past, but they were much younger. AmazonAMZN 0.0% has a reputation of being unprofitable for a very long time, but in the last quarter of 2001, it had its first profitable quarter. That was about seven years after the company started running out of the garage of Jeff Bezos.


FedExFDX 0.0% had a notable period of losses, which included acquisition of a huge amount of capital equipment like warehouses, planes, and trucks. It hit profitability for the first time four years after it started in 1971.

After two decades, Reddit still warns that it’s not making money. Losses can eventually be useful for companies when they can carry them forward and finally offset profits, but the profits do have to come. At the end of 2023, the company has $216.7 million in federal and $177.1 million of state net operating losses (NOLs) to carry. The state ones are gone in 2026 if there aren’t profits to apply them to. Federal NOLs through 2017 can only be carried for 20 years to fully offset taxable income. After 2017, due to the Tax Cuts and Jobs Act, they can be carried indefinitely to offset only 80% of taxable income annually. So, the losses at this point are theoretically helpful, but practically? Who knows?
In 2023, the company’s revenue was $804.0 million. Research and development, at $438.3 million, was more than half, an awfully big number for a company of this age. Total costs and expenses were $944.2 million. The net loss was $90.8 million, which at least is an improvement over 2022, with its $666.7 million in revenue and $158.6 million in losses.
Reddit favors non-standard accounting metrics like adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization). The adjusted part include “stock-based compensation expense and related taxes, other (income) expense, net, and certain other non-recurring or non-cash items impacting net income (loss) that we do not consider indicative of our ongoing business performance.” Which makes it tough to know exactly what’s being included or excluded.
The adjusted EBITDA in 2023 was still -$69.3 million.
And they like free cash flow as a “liquidity measure.” Free cash flow in 2023 was -$84.8 million. In 2022, it was -$100.3 million.
On top of that, Reddit is going the dual stock class approach, where Class A is the ordinary stock with one vote per share, Class B getting 10 votes per share, and Class C, no votes. This is the type of structure designed to let a small group continue to control the company no matter what. The public argument is that they will keep doing the right thing for the company. In practice, that has meant lots of losses.

The public argument is that they will keep doing the right thing for the company. In practice, that has meant lots of losses.

Nice burn from Forbes there at the end.

 

[HumptiDouji]

This is Ortiz

She looks like Dianne Feinstein's little sister.

 

[Kuritan Deplorable]

Reddit’s IPO Filing Shows Lots Of Losses After Nearly 20 Years

It feels good to have Forbes backing up all my sperging from earlier - Bizzarely high R&D, constant losses, no evidence of a coherent path for profit or a plan for the raised money in the IPO, the voting share structure guaranteeing that nobody can make major moves outside the chosen.

The burn at the ends just the icing on that cake. When Forbes is ragging on your IPO, you know the institutional investor sentiment is negative.

 

[Otis Mallebrok]

In 2023, the company’s revenue was $804.0 million.

It's absurd that they cannot manage to turn a profit with this amount of revenue. It's not like they do something conplicated or something that requires excessive amount of bandwidth. It's a glorified bulletin board.

 

[Pedophobe]

There was also Ms. Maxwell

Unconfirmed but probably my favorite conspiracy theory ever just because it's so funny

 

[Kuritan Deplorable]

It's absurd that they cannot manage to turn a profit with this amount of revenue. It's not like they do something conplicated or something that requires excessive amount of bandwidth. It's a glorified bulletin board.

Because reddit has about 2,000 staff, plus however many other temporary contractors and external service firms. They did a 5% layoff last year for about 100 people, so maybe its a bit lower or higher now. Even if your paying most of those people shit, they're working on projects that evidently go nowhere, and those R&D projects are costing a fortune, only to be evidently axed - They've barely added an avatar random generator (Which they intend to monetize).

If they cut most of the speculative bullshit and just ran Reddit tomorrow, they'd immediately be making $100m+ a year easy.

 

[Pedophobe]

Hello reddifugiis, please send me proof you have purchased T&H status and in return i will personally award you 500 Kiwiwkarma points (max limit 2 KWKMA per post). Don't forget your here forever.

 

[AnOminous]

ALL CENSORSHIP IS TO BE DEPLORED.

They hated Swartz because He told them the truth.

RIP.

This is Ortiz, so if you ever see her on the street you know not to shake her hand.

I can't wait until this evil bitch dies and burns in Hell.

 

[The Punished Mitch]

Because reddit has about 2,000 staff, plus however many other temporary contractors and external service firms. They did a 5% layoff last year for about 100 people, so maybe its a bit lower or higher now. Even if your paying most of those people shit, they're working on projects that evidently go nowhere, and those R&D projects are costing a fortune, only to be evidently axed - They've barely added an avatar random generator (Which they intend to monetize).

If they cut most of the speculative bullshit and just ran Reddit tomorrow, they'd immediately be making $100m+ a year easy.

It's absolute clown world, the CEO gets close to $200m a year

 

[Miss Dindu]

ALL CENSORSHIP IS TO BE DEPLORED.
View attachment 5762097



This is Ortiz, so if you ever see her on the street you know not to shake her hand.

Spoiler: Ugly bitch

View attachment 5762105

https://www.youtube.com/watch?v=rocS4wnwy6c

View attachment 5762109
View attachment 5762110

Lord, the number of life-ruiners that got enabled by Obama...

 

[derpherp2]

It's absurd that they cannot manage to turn a profit with this amount of revenue. It's not like they do something conplicated or something that requires excessive amount of bandwidth. It's a glorified bulletin board.

Literally just charge people making a new subreddit and then sell modding tools while only allowing one "researcher" and every other staff is maintenance.

Meaning if the CEO isn't the guy making new shit he has to mop up the bathrooms or something.