Reddit IPO breakdown! #reddit #stockmarket
Ask about All-In Podcast
Episode Description
Full episode: https://www.youtube.com/watch?v=-Am0vMW3fA0
Follow the besties: https://twitter.com/chamath https://twitter.com/Jason https://twitter.com/DavidSacks https://twitter.com/friedberg
Follow the pod: https://twitter.com/theallinpod https://linktr.ee/allinpodcast
Intro Music Credit: https://rb.gy/tppkzl https://twitter.com/yung_spielburg
Intro Video Credit: https://twitter.com/TheZachEffect
Brief Summary
Reddit's 2023 revenue grew 21%, but losses and low user revenue raise concerns about future growth.
Key points
- Reddit's Revenue Growth. In 2023, Reddit reported a revenue of 84 million, marking a 21% year-over-year increase.
- User Engagement Surge. Daily active unique users reached 76 million, a 27% increase year-over-year.
- Valuation Concerns. With a 5 billion dollar valuation, investors must believe in continued growth.
Transcript
reddits S1 is kind of fun let's break it down everybody 2023 Revenue 84 million up 21% year-over-year they're still losing money net loss 91 million in 2023 free cash flows negative they're kind of bouncing along the break even Mark as you can see there in the chart their daily active unique 76 million up 27% year-over-year average revenue per user is incredibly low three bucks 42 this was a business that the last couple of years had flatlined because it was only growing 5% a year in terms of usage and then all of a sudden in the last two quarters the usage started to climb pretty significantly absent that growth story it's a really challenged business
because a business without much growth gets value typically on a multiple of the cash flow that they're generating and there's less upside for you to make an investment at a 5 billion dollar valuation here you've really got to believe that the growth continues at this rate and it doesn't revert back to the mean growth rate of the last couple of years of basically 5% which is roughly Flatline
