Reddit S1
sec.govThe milestone timeline is oddly underwhelming. Both it and the letter from Steve Huffman emphasize the /r/WallStreetBets frenzy as evidence of Reddit popularity, which is ironic because a) it died out as quickly as it rose, as noted in Risk Factors and b) reminding the SEC that your platform was used for market manipulation in your S-1 is kinda funny.
Funniest line:
> Revenue from Reddit Gold and Collectible Avatars was not material for the years ended December 31, 2022 and 2023.
I saw WSB hit 60,000 concurrent users watching the Nvidia earnings yesterday
Huh, I just checked now and WSB does have more CCUs than I expected. (WSB has 38.0k CCUs, /r/pics has 36.3k CCUs)
That makes zero intuitive sense.
WSB has more actual discussion, while people mostly see /r/pics on their feed (because it's a default subreddit) or scroll through really quickly (because it's easily-consumable content).
Those numbers are inflated. I modded a smaller sub than WSB (still in the millions), went private during the API protests, and it consistently showed hundreds of CCUs when I was tooling with the sub.
Am I reading this right?
Revenue: $667m
Total comp of 3 execs: $322m
Income: ($90m)
I might have a suggestion on how they can get out of the red. It's a wild one, I know. But, it just might work!
Most of the compensation is in stock awards not cash
Yeah that sounds sustainable
It's not cash comp. He got $792K cash.
CEO total comp of $193m in 2023 is...quite something
For a company that produced negative income, absolutely absurd. Why do investors put up with this? Is there truly no oversight? There is no way he provides value close to his compensation.
He is the co-founder, and he kept the company moving after a huge backlash against the previous CEO. He made some controversial (and bold) decisions like increasing the API price to block out third-party apps, but it seems to work? So yes, he somewhat deserves that compensation.
They could have paid me $10m, given everyone a $50k bonus for the crap, and been profitable.
CEO remuneration is out of control when somebody can perform such a beige list of acts and be treated like the Messiah. Mozilla is in the same boat. Such poor value for money.
At least when they’re public someone can buy a few shares to get standing and file a securities civil suit to attempt to rein it in.
$193 million is absurd remuneration no matter how glorious Dear Leader is.
'bold' as in it was the obvious play after GPTs made reddit conversation archive an easy thing to profit off and protect
Horrible decisions to kill 3rd party apps instead of buying them and having Apollo dev redesign the junky Reddit app.
It is ridiculous, but devil's advocate: let's say the board told you that you needed to make very unpopular decisions and will be hated by millions of people for the favor.
How much would you ask for?
Reddit DM I just got:
"Participating in Reddit’s Initial Public Offering (IPO)
from reddit
sent 11 minutes ago
Hello,
TL;DR: – you’re invited to a special program that lets redditors purchase stock at the same price as institutional investors when we IPO. Details about eligibility and next steps follow. This (long, dense) message has all the info we can provide due to legal restrictions.
As you may have heard, Reddit has taken steps toward becoming a publicly traded company with the initial public filing of our registration statement with the U.S. Securities and Exchange Commission on February 22, 2024. Yes, it’s happening.
And because you have helped make Reddit what it is today, you now have the opportunity to become Reddit owners at the same price as institutional investors.
We’re offering a Directed Share Program (“DSP”) that invites eligible users and moderators who have contributed to Reddit to participate in our initial public offering (“IPO”). (Including you!)"
Are you an active user? What was the cutoff threshold for this?
They discuss the Directed Shares Program on page 224.
https://www.sec.gov/Archives/edgar/data/1713445/000162828024...
Briefly - Users & Moderators will be invited on 6 phased tiers. Accounts created on or before Jan 1st, 2024.
T1 - Users identified by us who have made meaninful contribution to Reddit community programs.
T2 - 200,000 Karma / 5,000 Mod actions
T3 - 100,000 Karma / 2,500 Mod actions
T4 - 50,000 Karma / 1,000 Mod actions
T5 - 25,000 Karma / 500 Mod actions
T6 - All eligible users
Class A Common stock, # and % appears redacted.
15yr club, 90k karma, former mod of a 200k sub - no stocks for me. Then again I've grown to despise reddit and whatever I contributed.
I'm 17yr club casual redditor, I just comment without regard to karma or anything like that.
Is there a price listed anywhere? thats all i care about finding out
Huh. That 100k karma might finally be worth something!
Too bad all my old alts either rotated or got hellbanned lol
Somewhat active. Could have something to do with my account being 15+ y/o as well.
Received the same via email.
Looks like I did as well.
Got the same email. Wish I can use the offer (I'm not american)
Pulling out interesting numbers:
Revenue: $666.7M in 2022, $804M in 2023
Gross margin: 84% in 2022, 86% in 2023
Net loss: $(158.6)M in 2022, $(90.8)M in 2023
DAUq: 57.5M in Q4 2022, 73.1M in Q4 2023
It looks like DAUq was flat or declining until Q3'21, then started ticking up, but really popped off in Q3 and Q4 of 2023 after they killed third-party clients.
DAUs seem less useful for an anonymous service like reddit. I have like 3 throwaway accounts and it takes 5 seconds to create a new one.
Yeah, they say as much in the risk factors when discussing potential issues with their metrics:
"Moreover, a single person or organization may hold multiple accounts and may use more than one account to perform multiple views within a relevant period."
Are there any Reddit alternatives these days? Something like HN but more slightly more casual (image/video embeds, subreddits)
Lemmy is the main alternative that isn't computing topics only. The biggest server is https://lemmy.world.
I'm building an HN clone, and underpinning is a set reconciliation protocol. https://kiwinews.xyz
/r/RedditAlternatives/ list:
https://old.reddit.com/r/RedditAlternatives/comments/1anols3...
I built it, and it's sort of more like HN or old.reddit.com and has image/video embeds and a lot more...except it also has the chicken and the egg problem : )
The default place for younger online communities is now overwhelmingly Discord. It's not a 1:1 replacement, but that's where the people are.
SomethingAwful putters along under new ownership, with fairly decent moderation.
Tildes.net, I think it's still invite only, but it's my second or third go to Lemmy and hacker news
4chan.org
stacker.news
r/SomethingAwful is a private community
First Reddit makes it private. Then Reddit bans the moderator. Then the sub is banned because there's no moderator.
I was expecting this to be thin but not that thin.
They list three pillars for financial. 1) Ads - which they've already done so priced in 2) Data - like the google deal they announced today with google for 60m. 3) User economy that includes "Commerce ecosystem" and brace yourself:
>Reddit Avatars as non-fungible tokens on the blockchain;
That really looks like an all-or-nothing bet on their dataset being valuable for AI and multiple recurring deals like google's resulting. It's certainly big & of reasonable quality, but at a minimum you'd need a way to neutralize the fact that most reddit interactions are antagonistic - users arguing & correcting each other...not necessarily traits you want a bot to learn
Google really should not have paid reddit to train on reddits users data. This sets a dangerous precedent
They should have just bought the entire business for $3B. Would be chump change for them.
> Our approach to content moderation inherently subjects us to numerous risks, including that we may: [...] be unable to retain a sufficient number of volunteer moderators
> Communities are created and led by Redditors who we call moderators, volunteers who are motivated by their passion for a given topic or idea. Moderators are not employees of Reddit.
They do it for free
Expect them to announce accounts requiring email/ phone associated with it and non-signed-in users having limited viewing capabilities. Also bye-bye old(.)reddit(.)com
it feels i’m re-reading part of wework first S-1:
“Similar to how cities are made from cement and steel, but are really built by their citizens, Reddit is made from code and algorithms, but is really built by our users”
“We see a spirit of entrepreneurship among Redditors, who are constantly pushing the boundaries of what Reddit can be used for. To support their creativity, we are developing new ways to earn money on Reddit. We have enabled artistic users to earn millions creating avatars”
As long as they’re not using third party apps and clicking multiple times per thread to expand the comments section by 3 new comments with a potential break for ads.
Did this get flagged/deleted?
It must've been flagged initially, but I see it on the second page now.