Social media platform Reddit made its IPO prospectus public after filing Thursday with the Securities and Exchange Commission. The company is expected debut in March, trading under the ticket symbol “RDDT.”
The IPO disclosed a net loss of $90.8 million for 2023, a decrease from a loss of $158.6 million in 2022. However, its core business, online advertising sales, increased by 20% in 2023 to $804 million. Reddit expects that by 2027, its “total addressable market globally from advertising, excluding China and Russia, to be $1.4 trillion.”
The company plans to offer a “directed share program,” which would allow Reddit’s moderators—a volunteer position—to participate in the IPO. This would possibly cause individual investors making up a bigger proportion of total investors than typical for an initial public offering.
“These factors could cause volatility in the market price of our Class A common stock,” Reddit said in the filing. The company will have three classes of authorized common stock: Class A, Class B and Class C.
