Social media platform Reddit has reportedly publicly filed for an initial public offering (IPO) with the Securities and Exchange Commission (SEC).
The move comes more than two years after Reddit first filed confidentially for an IPO in December 2021, Bloomberg reported Thursday (Feb. 22).
Reddit has been advised to consider a valuation of at least $5 billion for the IPO and could begin marketing shares as early as March, the report said. Bloomberg added that the company won’t disclose the terms for its IPO, including its valuation, until a later filing.
The offering is being led by Morgan Stanley, Goldman Sachs, JPMorgan Chase & Co. and Bank of America, Bloomberg said. The company plans for its shares to trade on the New York Stock Exchange under the symbol RDDT.
Founded in 2005, Reddit had over 70 million daily active unique visitors as of October, Bloomberg said, citing the platform’s website.
Reddit’s 2021 bid for an IPO was delayed due to a lack of profitability, PYMNTS reported last May.
However, the social media platform said it achieved that milestone last year, recording a 20% increase in revenue for the year 2023 compared to the previous year. The company’s revenue exceeded $800 million in 2023, representing a 20% rise from the $666 million generated in 2022, PYMNTS said earlier this month, citing a report from Bloomberg.
While Reddit has not yet achieved profitability for the full year, it did mark a profit in the fourth quarter, the report noted. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) showed a loss of about $69 million.
Reddit could be 2024’s first major test of the market for a technology startup backed by venture capital, Bloomberg said. The company, which has raised $1.38 billion, was valued at $10 billion after a 2021 financing round.
Its listing will be likely be closely watched by IPO candidates such as Microsoft-backed data security startup Rubrik and health-care payments company Waystar Technologies, according to the report.
This comes against a recent backdrop of investors pulling back from funding tech startups, which fell to a four-year low.
Venture capitalists invested $170.6 billion in the U.S. in 2023 across 15,000 deals, roughly 30% less than the prior year, PYMNTS reported in January.