Reddit, Inc.

Key Company Facts

Founded	2005
Headquarters	San Francisco, US
Sector	Technology
Industry	Social Media
Founders	Steve Huffman, Alexis Ohanian
Number of employees	1,400 (2022)
IPO Date	2023 (expected)
Number of investors	Not available
Total funding	Not available
Number of account holders	430 million monthly users
Valuation estimate	$6.6 billion USD

Company Overview & History

Reddit is a social news aggregation, web content rating, and discussion platform that was founded in 2005 by Steve Huffman and Alexis Ohanian.

The platform allows users to submit content, such as text posts, links, and images, and engage in discussions through comments.

Reddit operates on a system of “subreddits,” which are individual communities focused on specific topics or interests. The company’s mission is to provide a platform for authentic conversations and the sharing of diverse perspectives.

Financial Performance

Reddit has experienced significant growth and success over the years. While specific financial details are not publicly disclosed due to Reddit being a privately held company, it has garnered substantial investment and is valued at several billion dollars.

The platform generates revenue through advertising, including display ads and sponsored posts. Additionally, Reddit introduced a premium membership called Reddit Gold, which offers enhanced features and perks to users who subscribe for a monthly fee.

These revenue streams have contributed to the platform’s financial stability and growth.

Revenue

Year	Revenue (USD)
2014	$8 million
2015	$15 million
2016	$25 million
2017	$50 million
2018	$80 million
2019	$120 million
2020	$170 million
2021	$350 million

Business Model

Reddit’s business model revolves around creating an online community where users can engage in discussions, share content, and consume information.

The platform is primarily free to use, relying on advertising as a key source of revenue. Reddit’s targeted advertising options allow advertisers to reach specific audiences based on users’ interests, demographics, and subreddit subscriptions.

This highly engaged user base provides valuable opportunities for brands to connect with their target markets. Furthermore, Reddit’s premium membership, Reddit Gold, offers additional features to enhance the user experience and provides an alternative revenue stream.

Estimated Valuation

Year	Valuation (USD)
2014	$0.5 billion
2017	$1.8 billion
2019	$3 billion
2021	$10 billion

Risk Factors

Like any business, Reddit faces certain risk factors that may impact its operations and financial performance. One significant risk is the potential for user-generated content that violates laws or community guidelines, which could lead to legal issues or damage the platform’s reputation. Moderation and content management are ongoing challenges for Reddit, as ensuring the platform remains a safe and inclusive environment requires continuous monitoring and enforcement.

Additionally, competition from other social media platforms and evolving user preferences could impact Reddit’s user base and engagement levels.

Market Opportunity

The market opportunity for Reddit lies in the growing demand for online communities and platforms that foster meaningful discussions and content sharing.

With a vast user base and a wide range of niche communities, Reddit offers advertisers the chance to target specific audiences and engage with passionate communities. As the digital landscape continues to evolve, brands are recognizing the importance of authenticity and genuine connections with their target audiences.

Reddit’s unique user-driven content and active communities position it well to capitalize on this market opportunity, providing a platform where users can connect, share, and learn from one another.

Competitors

• Quora
• Voat
• 4chan
• Hacker News
• Stack Overflow
• Tumblr
• 9GAG
• Discord