Last week, 15 December, online forum Reddit has applied for an IPO. The company did not disclose the number of shares to be offered and the price range. Here's what is known about Reddit today.
Accelerates "memorial" actions
Forum was founded in 2005 by Steve Huffman and Alexis Ohanian. The following year, Reddit joined Conde Nast Publications, the publisher of magazines like GQ and Vogue.. Reddit became an independent subsidiary in 2011.
media, dedicated to the stock market, began to frequently mention the forum since the beginning of 2021. Then Reddit users began to jointly buy shares of distressed companies like GameStop and AMC.. As a result, a short squeeze has occurred in stocks with a large number of short positions. In January, GameStop and AMC rose 1900 and 900%, but about traders from Reddit started talking on Wall Street.
Worth $ 10 billion
In recent years, the forum has attracted venture capital investments. In August 2021, the company invested $ 700 million, and her estimate was 10 billion. And this score is growing rapidly. Back in February, Reddit was estimated at just 6 billion, and at the beginning of 2019 - $ 3 billion.
Reddit VCs are Fidelity and Sequoia, Tencent and rapper Snoop Dogg.
Earns on advertising
Like other online sites, most of the money Reddit makes from advertising. Reddit is not a public company yet, 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. By the end of this year, sales may double, up to 350 million dollars.
An approximate estimate of Reddit revenue was published by the Business of Apps project, who deals with application analytics. According to the site, Reddit is a loss-making company, which could report the first profit in 2022.
Reddit revenue estimate, million dollars
In 2020, when, due to quarantine, people began to spend more time online, activity on the forum has greatly increased. 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 by double digits.
Number of posts, million
Number of comments, billion