Last week, 15 December, Online forum Reddit files for IPO. The company did not name the number of shares to be placed and the price range.. Here's what we know about Reddit today.
Accelerates "memorial" actions
The forum was founded in 2005 by Steve Huffman and Alexis Ohanian. The following year, Reddit joined Conde Nast Publications, publisher of magazines like GQ and Vogue.. Reddit became an independent subsidiary in 2011.
media, dedicated to the stock market, the forum has been frequently mentioned since the beginning of 2021. Then Reddit users began to collectively buy shares in troubled companies like GameStop and AMC.. As a result, stocks with a large number of short positions have a short squeeze. In January, GameStop and AMC rose 1900 and 900%, and about traders from Reddit they started talking on Wall Street.
Worth $ 10 billion
In recent years, the forum has attracted venture investments. In August 2021, the company invested $700 million, and its estimate was 10 billion. And that score is rising fast. Back in February, Reddit was valued at just 6 billion., and at the beginning of 2019 - $ 3 billion.
Reddit VCs are Fidelity and Sequoia, Tencent and rapper Snoop Dogg.
Earn from advertising
Like other online platforms, Reddit makes most of its money from ads.. Reddit is not yet a public company, and she doesn't publish her financial statements. According to her, in the second quarter, revenue increased by 192% and for the first time amounted to $ 100 million. Sales could double this year, up to 350 million dollars.
A rough estimate of Reddit's revenue was published by the Business of Apps project, who deals with application analytics. According to the website, Reddit is a losing company, which can report the first profit in 2022.
Reddit revenue estimate, million dollars
| 2014 | 8 |
| 2015 | 15 |
| 2016 | 25 |
| 2017 | 50 |
| 2018 | 80 |
| 2019 | 120 |
| 2020 | 170 |
8
Keeps growing
In 2020, when people started spending more time online due to quarantine, activity on the forum has increased greatly. Compared to 2019, the number of daily active users increased by 44%, up to 52 million people. The number of posts and comments also grew double digits..
Number of posts, million
| 2019 | 199 (+30%) |
| 2020 | 303 (+52%) |
| 2021 | 366 (+19%) |
199 (+30%)
Number of comments, billion
| 2019 | 1,7 (+42%) |
| 2020 | 2,0 (+19%) |
| 2021 | 2,3 (+12%) |
1,7 (+42%)
