Reddit Announces Plans to Go Public
Reddit wants to go public, and has filed its IPO prospectus with the SEC.
Reddit announced the IPO filing Wednesday and had previously said it was contemplating going public. The company said its hands were tied in releasing any additional info, noting, “We are in a quiet period, and for regulatory reasons, we cannot say anything further.”
As per the company’s own funding announcement in August, Reddit was recently valued at over $10 billion USD, and saw a 192% increase in its advertising revenue in Q2 of 2021 compared to the previous year. The number of shares that could be offered and the proposed price range has not been disclosed.
The company was bought by publishing giant Condé Nast for $10 million USD in 2006. After well over $1 billion USD in subsequent new investment, it’s hoping for a $15 billion valuation when it goes public.
Reddit has said it plans to double headcount in 2021, expanding from about 700 to 1,400 employees. The company earlier this year hired its first-ever CFO, Drew Vollero, who oversaw Snap’s IPO in 2017.
Reddit was founded in 2005 and has shot up in popularity as a news aggregator, messaging board and social media website since then. In the second quarter of this year, it generated $100 million USD in advertising revenue — 192 percent more than what it generated in the same period of 2020 — for the first time.
Going forward, the company intends to find more way to incorporate video and audio into its website, which could lead to even bigger ad earnings.