Benzinga - by Michael Cohen, Benzinga Editor.
Reddit officially submitted its IPO prospectus to the U.S. Securities and Exchange Commission on Thursday. The much-anticipated public offering is set to take place on the New York Stock Exchange, where the social media platform will be listed under the ticker symbol "RDDT."
The anticipated March debut of Reddit's IPO is poised to be the year's first significant tech IPO, a milestone event since Pinterest's market entry in 2019, CNBC reported.
Reddit's recent filing revealed a 20% increase in annual revenue for 2023, totaling $804 million, up from the previous year's $666.7 million. The platform's revenue primarily stems from its robust online advertising business, despite its ongoing struggle to rival the ad businesses of tech behemoths like Meta Platforms and Alphabet's Google.
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Despite its impressive user engagement metrics, with over 100,000 communities and millions of daily and weekly active users, Reddit faced challenges in achieving profitability, according to CNBC. The company reported a narrowed net loss of $90.8 million for 2023, improving from the previous year's $158.6 million loss.
Reddit's strategy included enhancing its search capabilities and leveraging artificial intelligence to bolster its advertising sector. The company is optimistic about tapping into the lucrative search advertising market, which is projected to reach $750 billion by 2027.
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