Reddit disclosed $90.8 million in losses and revenue growth of roughly 21% in 2023 on Thursday, as the social media company made public its IPO filing ahead of a planned stock market debut in March.
The initial public offering filing comes almost two decades after Reddit’s launch and will be a major test for the platform that still lags the commercial success of social media contemporaries such as Facebook and Twitter, now known as X.
In the filing, Reddit reported a net loss of $90.8 million for the year ended Dec. 31 and logged revenue growth of $804 million, up from $666.7 million a year earlier.
Reddit was valued at $10 billion in a funding round in 2021 and it is unclear what valuation the company will aim for during its share sale in the coming weeks. It is expected to seek a sale of nearly 10% of its shares in the IPO, Reuters reported earlier.
Reuters reported on Wednesday, citing sources, that San Francisco-based Reddit has struck a deal with Alphabet’s Google to make its content available to train the search engine giant’s artificial intelligence models. The contract is worth about $60 million each year, according to one of the sources.
The San Francisco-based company is moving towards one of the most highly anticipated listings of the last few years as the US IPO market thaws amid easing fears of a recession and growing hopes of a soft landing for the economy.
Reddit had confidentially filed for the IPO in late 2021, but tough economic conditions and the poor performance of listed technology stocks had compelled it to delay the offering.
Morgan Stanley and Goldman Sachs have been tapped as the lead underwriters for Reddit’s IPO, which includes more than a dozen other banks.
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