‍Reddit is an online platform that is a central hub for user communities of "Redditors" who create, share, and discuss content across a diverse range of topics. The users can share content by posting stories, links, images, and videos, comment on these posts, and vote by upvoting or downvoting.

The company’s business model is built on these key revenue streams: advertising, a premium subscription service, awards, and API usage fees. A significant portion of Reddit's income comes from advertising, which notably scaled up in recent years. In 2021, the company’s ad revenue exceeded $350 million. Their premium subscription is about $6 per month, allowing users to have a VIP experience.

Reddit is reportedly gearing up for a potential Initial Public Offering (IPO) in March 2024 as per a recent report from Reuters. Click here to see more.

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Reddit’s Revenue and Growth Model

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Is Reddit Ready for IPO?

Reddit is reportedly seeking to launch IPO.

• According to Reuters, Reddit intends to offer approximately 10% of its shares in its upcoming IPO, although a specific valuation target for the offering has not been established yet.

• Reddit's IPO, set to be the first for a social media company since Pinterest in 2019, could potentially rejuvenate the IPO market.

• After only two major startups, Instacart and Klaviyo, went public in last year there's an anticipation that IPO activity might pick up in 2024 .

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Competition

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Reddit faces significant competition within the social media industry. Large technology firms continue to focus on individual experiences and personal connections, and predominantly control this arena.

However, smaller companies have also made a mark by prioritizing casual and open-ended conversations. Distinctly from traditional large tech firms, Reddit values anonymity within the platform.

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Click here to read the latest report on Reddit by Contrary Research

Click here to read the full report on Reddit by Sacra

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Reddit's Financial Data

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Reddit 1Y

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Reddit 90D

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Reddit 30D

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Series F Valuation

<span class="date">2021-08-11</span>
<span class="value">$10B</span>

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Implied Valuation

<span class="date">2024-01-19</span>
<span class="value">$4.64B</span>

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Change Since Last Round

<span class="date">2021-08-11 → 2024-01-19</span>

<span class="value red">-53.56%</span>

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Funding Round in USD

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