Key Takeaways:
- Reddit filed to list on the New York Stock Exchange under the ticker RDDT on Thursday.
- Despite being nearly 20 years old, Reddit has not yet recorded a profit, reporting a net loss of $90.8 million for 2023 in its IPO filing.
- Reddit had confidentially filed a draft IPO registration statement with the SEC in December 2021 amid a flurry of other IPOs at the time.
Reddit filed an initial public offering (IPO) prospectus with the Securities and Exchange Commission on Thursday to list on the New York Stock Exchange (NYSE).
The company will trade under the symbol “RDDT.”
Reddit confidentially submitted a draft registration statement with the SEC in late 2021 to go public amidst a flurry of other IPOs.
The market for public listings significantly decreased afterward, dropping from 1,035 IPOs in 2021 to 181 in 2022 and to 154 in 2023.
In its IPO filing, Reddit reported $804 million in annual revenue last year, a 21% increase from the previous year. However, it has yet to record a profit, reporting a net loss of $90.8 million for 2023.
Reddit relies on ad sales for revenue and stated that the market opportunity for digital advertising, excluding China and Russia, is $1 trillion. It is expected to grow at a compound annual rate of 8% a year to $1.4 trillion in 2027, according to S&P Global Market Intelligence data.
Tech entrepreneurs Alexis Ohanian and Steve Huffman founded Reddit in 2005.