Reddit, a social media platform with message boards for interest-based communities, filed on Thursday with the SEC to raise up to $100 million in an initial public offering. However, this is likely a placeholder for a deal we estimate could raise up to $750 million.
Reddit describes itself as a global, digital city where users around the world can join communities, called "subreddits," to learn, engage in conversation, and explore passions, among other activities. The platform has over 100,000 active subreddits, with over 500 subreddits that each have at least one million subscribers. In December 2023, Reddit had more than 500 million visitors, and in the three months ended December 31, 2023, it had an average of 73.1 million daily active uniques. The company generates substantially all of its revenue from advertising, though it also generates revenue from data licensing, Reddit Premium subscriptions, and products within its user economy, and it is working to grow new revenue streams.
The San Francisco, CA-based company was founded in 2005 and booked $804 million in revenue for the 12 months ended December 31, 2023. It plans to list on the NYSE under the symbol RDDT. Reddit filed confidentially on December 16, 2021. Morgan Stanley, Goldman Sachs, J.P. Morgan, BofA Securities, Citi, Deutsche Bank, and MUFG are the joint bookrunners on the deal. No pricing terms were disclosed.
