On Thursday, social media company Reddit filed its initial public offering (IPO) prospectus with the Securities and Exchange Commission under the symbol “RDDT.” The new IPO was expected to start trading on the New York Stock Exchange in March as the first major tech IPO of the year and also the first listed social media IPO since Pinterest in 2019.
According to the filing, Reddit reported annual sales in 2023 of $804 million, an increase of 20% from $666.7 million in 2022, with online advertising sales from its website and mobile app as its core business.
The company also reported a net loss of $90.8 million, which was lower than the amount of $158.6 million in the previous year.
According to analytics firm Semrush, Reddit is among one of the most-visited websites in the US, though the company still cannot relatively compete in the online advertising business with other big-name tech companies such as Meta and Alphabet.
Thus, the company planned to use artificial intelligence (AI) to enhance its advertisement business and offered tools and incentives to drive continued creation, improvements, and commerce as it prepared for new revenue channels.