Reddit goes public and invites users to invest

Reddit Inc. has filed a registration statement with the U.S. Securities and Exchange Commission describing the company’s financial performance and business goals ahead of its IPO, writes the Verge.

Reddit makes its debut on the New York Stock Exchange under the ticker RDDT.

From the text of the document it became known that last year Reddit received $804 million in revenue, the lion’s share of which came from advertising. However, the company is unprofitable – in 2023, it received $90.8 million in net sales.

Interestingly, during the IPO, Reddit will allow its best users, i.e. moderators and those with high karma, to purchase shares. Such a privilege is usually granted to professional investors who can buy shares at a lower price before the start of public trading.

Reddit will distribute the shares in a tiered system, starting with certain users and moderators identified by the company who have made significant contributions to the Reddit community. Next, users with a karma score of at least 2,000 and those who have completed at least 5,000 moderator actions will be invited to purchase shares.

It is also worth mentioning that Reddit has signed a deal with Google to sell user-generated content for AI training.