The milestone timeline is oddly underwhelming. Both it and the letter from Steve Huffman emphasize the /r/WallStreetBets frenzy as evidence of Reddit popularity, which is ironic because a) it died out as quickly as it rose, as noted in Risk Factors and b) reminding the SEC that your platform was used for market manipulation in your S-1 is kinda funny.<p>Funniest line:<p>> Revenue from Reddit Gold and Collectible Avatars was not material for the years ended December 31, 2022 and 2023.
Am I reading this right?<p>Revenue: $667m<p>Total comp of 3 execs: $322m<p>Income: ($90m)<p>I might have a suggestion on how they can get out of the red. It's a wild one, I know. But, it just might work!
Reddit DM I just got:<p><i>"Participating in Reddit’s Initial Public Offering (IPO)<p>from reddit<p>sent 11 minutes ago<p>Hello,<p>TL;DR: – you’re invited to a special program that lets redditors purchase stock at the same price as institutional investors when we IPO. Details about eligibility and next steps follow. This (long, dense) message has all the info we can provide due to legal restrictions.<p>As you may have heard, Reddit has taken steps toward becoming a publicly traded company with the initial public filing of our registration statement with the U.S. Securities and Exchange Commission on February 22, 2024. Yes, it’s happening.<p>And because you have helped make Reddit what it is today, you now have the opportunity to become Reddit owners at the same price as institutional investors.<p>We’re offering a Directed Share Program (“DSP”) that invites eligible users and moderators who have contributed to Reddit to participate in our initial public offering (“IPO”). (Including you!)"</i>
Pulling out interesting numbers:<p>Revenue: $666.7M in 2022, $804M in 2023<p>Gross margin: 84% in 2022, 86% in 2023<p>Net loss: $(158.6)M in 2022, $(90.8)M in 2023<p>DAUq: 57.5M in Q4 2022, 73.1M in Q4 2023
I was expecting this to be thin but not that thin.<p>They list three pillars for financial. 1) Ads - which they've already done so priced in 2) Data - like the google deal they announced today with google for 60m. 3) User economy that includes "Commerce ecosystem" and brace yourself:<p>>Reddit Avatars as non-fungible tokens on the blockchain;<p>That really looks like an all-or-nothing bet on their dataset being valuable for AI and multiple recurring deals like google's resulting. It's certainly big & of reasonable quality, but at a minimum you'd need a way to neutralize the fact that most reddit interactions are antagonistic - users arguing & correcting each other...not necessarily traits you want a bot to learn
> Our approach to content moderation inherently subjects us to numerous risks, including that we may: [...] be unable to retain a sufficient number of volunteer moderators<p>> Communities are created and led by Redditors who we call moderators, volunteers who are motivated by their passion for a given topic or idea. Moderators are not employees of Reddit.<p>They do it for free
Expect them to announce accounts requiring email/ phone associated with it and non-signed-in users having limited viewing capabilities. Also bye-bye old(.)reddit(.)com
it feels i’m re-reading part of wework first S-1:<p>“Similar to how cities are made from cement and steel, but are really built by their citizens, Reddit is made from code and algorithms, but is really built by our users”<p>“We see a spirit of entrepreneurship among Redditors, who are constantly pushing the boundaries of what Reddit can be used for. To support their creativity, we are developing new ways to earn money on Reddit. We have enabled artistic users to earn millions creating avatars”