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Reddit’s IPO Filing Shows Lots Of Losses After Nearly 20 Years (www.forbes.com)

submitted 8 months ago by [email protected] to c/[email protected]

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[–] [email protected] 401 points 8 months ago (53 children)

I work in financial reporting, so I have a decent idea of what makes up things like operating profit/loss and Adjusted EBITDA.

This does not look good for Reddit and if the company only managed a $90.8m loss after jacking up API costs, nuking virtually every third-party client, backstabbing every power mod, giving alternatives like Lemmy and Kbin an actual user base and selling off user data to Google, then I fully expect things to get a lot worse on the site.

[–] [email protected] 12 points 8 months ago (2 children)

I made a comment below about which of my old accounts were receiving the buy-shares offer. I don't know if what they're doing raises any speculation to someone with your background, but I'd be interested in hearing if it does.

[–] [email protected] 29 points 8 months ago (1 children)

Vonage did something similar where they let users get in on the IPO. Then got sued in a class action lawsuit because the stock tanked.

https://web.archive.org/web/20121104141751/http://news.cnet.com/2100-1036_3-6079765.html

Reading through that article you could probably find/replace with Reddit.

The complaint alleges that Vonage's officers decided to offer shares to customers because they knew institutional investors who normally buy IPOs would be reluctant to buy Vonage stock. Vonage has consistently lost money and has never been profitable.

[–] [email protected] 12 points 8 months ago (1 children)

Oh, ouch! If this is similar, it's a bit ironic that they've pissed off the people who would've been most likely to invest in the IPO.

[–] [email protected] 10 points 8 months ago

I would have totally been one of those IPO investors. I'm seriously considering shorting the shit out of it now.

[–] [email protected] 26 points 8 months ago* (last edited 8 months ago) (2 children)

Their R&D costs seem alarmingly high, when the most 'innovative' things we've seen come out of Reddit in recent years have been canned features like their own cryptocurrency and RPAN.

Other than that and Spez being paid a buttload in stock options...

[–] [email protected] 20 points 8 months ago (1 children)

I'd be really interested to see their R&D costs for 2022. I'm wondering how much of 2023's R&D was spurred by restricting the API code, and then allowing certain applications access; having to finally take seriously their decade-old promise to develop mod tools with no planning or preparation; their total surprise at having to provide access to disabled people; and having to update their app. Those are all areas where they were extremely happy to let languish, and which they suddenly had to provide expedited support for after the protests.

[–] [email protected] 13 points 8 months ago

And from what I understand they haven't even gotten close to what third party apps had done for mod tools or accessibility.

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