Social media company Reddit filed its IPO prospectus with the Securities and Exchange Commission on Thursday after a yearslong run-up. The company plans to trade on the New York Stock Exchange under the ticker symbol “RDDT.”
Reddit said it had $804 million in annual sales for 2023, up 20% from the $666.7 million it brought in the previous year, according to the filing. The social networking company’s core business is reliant on online advertising sales stemming from its website and mobile app.
The company said it has incurred net losses since its inception. It reported a net loss of $90.8 million for the year ended Dec. 31, 2023, compared to a net loss of $158.6 million the year prior.
As of the fourth quarter of 2023, Reddit said that its U.S. average revenue per user, or ARPU, was $5.51, which was down from $5.92 from the previous year. The company’s ARPU was $3.42, which was a 2% year-over-year decline from $3.49.
Reddit said that by 2027, the company estimates that its “total addressable market globally from advertising, excluding China and Russia, to be $1.4 trillion.” Currently, Reddit said that advertising market is $1.0 trillion, sans China and Russia.
The company said it is building its “search capabilities,” and that it can “more fully address the $750Â billion opportunity in search advertising that S&P Global Market Intelligence estimates the market to be in 2027.”
Reddit also detailed its plans to use artificial intelligence technologies to improve its ad business and expects “to open additional monetization channels for Reddit by providing our users and creators with the requisite tools and incentives to drive continued creation, improvements, and commerce.”
It is also “in the early stages” of developing and monetizing a data-licensing business, in which third-parties would be allowed to “access, search, and analyze data on our platform.”
“In January 2024, we entered into certain data licensing arrangements with an aggregate contract value of $203.0…
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