Reddit files to go public at last | Equity Podcast

TL;DR

Online forum giant Reddit is going public with strong revenue growth and user momentum, but the company is still unprofitable and burning cash.

Transcript

this episode is sponsored by Morgan Stanley atw work visit morganstanley.com assessment to get your free transaction Readiness assessment today hello and welcome back to equity this is an equity shot bringing you breaking news that wasn't out in time for our Friday show and we would have had Maryanne on this episode but she is currently sick we lov... Read More

Key Insights

• 🤪 Reddit's IPO is highly anticipated and could set a precedent for other tech companies considering going public.
• 💪 Despite its unprofitability, Reddit's strong revenue growth and user count make it an attractive investment opportunity.
• 👾 The company's data deals in the AI space provide additional growth potential for its business.
• 🖐️ Market reception and pricing will play a crucial role in determining the success of Reddit's IPO.

Questions & Answers

Q: What is Reddit's expected ticker symbol for its IPO?

Reddit is targeting the ticker symbol "rddt" for its IPO on the New York Stock Exchange.

Q: How much has Reddit's revenue grown in recent years?

Reddit grew its total revenue by 21% in 2023, expanding from $667 million in 2022 to $84 million in 2023.

Q: Is Reddit profitable?

No, despite its revenue growth, Reddit is still unprofitable and had a net loss of about $91 million in 2023.

Q: What deals has Reddit signed in the data space?

Reddit has signed data deals with AI companies and models worth $66.4 million, which is about 78% of its revenue in 2023.

Q: What are the key challenges for Reddit's IPO?

Reddit's unprofitability and cash burn rate are the main challenges it will have to address during its IPO.

Summary & Key Takeaways

• Reddit is going public and looking to list its shares on the New York Stock Exchange.

• The company has filed its first S1 filing, but the price range for its IPO is still unknown.

• Reddit has seen strong revenue growth, reaching close to a billion dollars in 2023, but it is still unprofitable and burning cash.