"Reddit's Historic IPO: What You Need to Know About Equity and Going Public"

Hello, and welcome to Equity, a podcast about the business of startups, where we unpack the numbers and nuance behind the headlines.

Table of Contents

Weekend Wrap-up

This week’s episode is a bit shorter than usual, but no less exciting. We’re diving into the Reddit IPO filing that dropped just after our final regular episode of the week. Since we couldn’t wait until Monday to dissect the numbers, we’ve prepared an in-depth overview for your reading pleasure.

If You Want to Read Along…

Before we dive in, if you’d like to read along with our coverage, be sure to check out the following articles:

Reddit IPO filing, first look, written by Mary Ann and Alex
Inside Reddit’s AI revenues, written by Kyle Wiggers
The Reddit S-1 filing, via the SEC

The Reddit IPO: A Starting Gun or a Wet Blanket?

The Reddit IPO could be this year’s public-offering starting gun, igniting a wave of activity in the markets. On the other hand, it might be a wet blanket on the year’s liquidity cycle. We’ll have to wait and see how it prices and trades when it does list.

The Numbers Game

Let’s take a closer look at some of the key numbers from the Reddit S-1 filing:

Revenue growth: 23% YoY, with AI-driven revenue growth outpacing overall revenue growth
User base: 430 million monthly active users (MAUs) and 50% of those users come from outside the US
Monetization: 85% of Reddit’s revenue comes from advertising

What Does This Mean for the Market?

The Reddit IPO is a significant event in the tech world, with implications for both public and private markets. We’ll be keeping an eye on how it trades and prices when it lists.

Counting Down to S-1/A…

We’re eagerly awaiting the S-1/A filing, which will provide more insight into Reddit’s financials and business strategy. In the meantime, we’ll continue to analyze the numbers and provide our expert analysis.