Reddit discloses 73M daily users, 500M monthly visitors, unconventional reporting style, and $804M revenue in 2023

Reddit is getting ready to go public and has shared its financial details and strategies with the SEC. The company plans to list on the New York Stock Exchange under the symbol "RDDT".

Reddit says it has over 73 million people using it every day and 500 million visiting every month. This number is interesting because it's different from what most social media platforms report.

For the past few months, Reddit has been changing how it shows tabs like Images and News in search results. Some people didn't like that the News tab was sometimes missing. Google said this was just a test and that they're not planning to get rid of the News tab.

Reddit's growth is notable, especially since it switched from sharing monthly active users to daily ones in 2020. Some think Reddit changed its reporting style because it was losing users after making its community rules stricter. But the latest data suggests Reddit is still growing.

The company describes itself as a "digital city" where people from around the world can join communities, share ideas, and learn new things. The company recently made a deal to sell its data to Google for $60 million a year. This deal is interesting, especially to OpenAI CEO Sam Altman, who owns a big part of Reddit. It's unclear what he thinks about the deal.

Reddit also states that over 500 of its subreddits have more than a million subscribers. People who've been on Reddit for a long time spend a lot of time there each day. Most Reddit users say it's the best place to learn about their favorite topics.

In terms of money, Reddit made $804 million in 2023, which is 21% more than the year before. Reddit believes it can make even more money in the future, especially from ads in different countries.

The company also plans to make money by letting other companies use its data. In January 2024, it signed deals worth $203 million for this. Reddit expects to make at least $66.4 million from these deals in 2024.

Reddit hasn't said how many shares it will offer yet, but it plans to sell some to its most active users and moderators through a special program.

This program will rank participants in six tiers based on their contributions to Reddit, measured in karma points for users and moderator actions for moderators.

The first tier includes those who've significantly contributed to Reddit's community programs, with the next tiers based on increasing levels of karma and moderator actions. This approach aims to give back to the users and moderators who have played a big part in building Reddit's communities.

Reddit is aiming for a $5 billion market value when it goes public. This valuation reflects the company's growth and its role as a major platform for online discussions. The IPO is set to happen after the SEC reviews Reddit's filing, with more details expected to be released as the date approaches.

This move to go public and the strategies Reddit is employing, like selling data to Google and offering shares to active community members, highlight the company's efforts to monetize its platform while maintaining its unique community-driven model.

As Reddit moves towards this new chapter, it will be interesting to see how its IPO unfolds and how these strategies will impact its growth and the broader social media landscape.

Image: DIW-Aigen

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