After a lot planning, and establishing new foundations for its enterprise efforts, Reddit is reportedly trying to launch its preliminary public providing (IPO) in March, marking the following stage for the forum-based social app.

As reported by Reuters:

“Reddit has drawn up detailed plans to launch its IPO in March, transferring ahead with a list it has been eyeing for greater than three years, based on folks accustomed to the matter.”

Certainly, rumors of a Reddit IPO have been floating round for a while, with more moderen insights suggesting that the platform will probably be looking for a $15 billion valuation to form its IPO providing.

Which is a loopy excessive quantity.

For comparability, X, which at the moment claims greater than 250 million each day customers, and can usher in over $2 billion in income for FY 2023, is at the moment valued at $19 billion. Reddit sees some 70 million each day actives, virtually 1 / 4 of X’s viewers, and is ready to herald $800 million in advert income for the yr.

It appears, then, that Reddit is probably going value considerably lower than X, whereas Snapchat, at 406 million each day actives, is at the moment valued at $27 billion.

The information would counsel that Reddit must be eyeing a far decrease valuation, although based on Reuters, the platform was valued at round $10 billion as per its final funding spherical in 2021.

And given the efforts that it’s gone to since, you may think about that Reddit would need to assume it’s value considerably extra now, although the way you quantify that, and its future potential, will play a giant half in its prospects.

Over the previous few years, Reddit has undergone a large clean-up, as a part of its mission to make it a extra interesting proposition for advertisers.

Again in 2020, within the wake of the George Floyd incident, Reddit up to date its insurance policies round racism and hate speech, which resulted in hundreds of its most controversial communities being shut down fully. Since then, Reddit has applied a variety of further guidelines to wash up its communities, whereas extra not too long ago, it’s additionally been trying to implement extra management, by way of new processes for moderators, as a way to cut back its reliance on volunteer contributors.

These modifications have been controversial, they usually have impacted Reddit’s general utilization. However with these new floor guidelines in place, the platform is now rising once more, going from 52 million DAU again in 2021 to 70 million immediately.

And with ongoing updates to its advert instruments, Reddit’s now additionally trying to facilitate extra alternative for manufacturers to attach with its engaged, educated userbase.

However within the present market, the precise worth of Reddit will probably be tough to evaluate, particularly contemplating the place the most recent traits are headed.

One in all which, after all, is AI, which Reddit additionally thinks it holds vital worth in.

Final yr, Reddit additionally elevated the price of its API entry as a consequence of many LLMs sourcing their conversational information from Reddit communities.

May that be one other space of alternative for the app, in monetizing its information for future AI developments? May Reddit possibly create its personal LLM based mostly on the identical?

It does look like Reddit might want to do one thing extra to drive up its worth, and an AI play would lean extra into rising market shifts.

However proper now, Reddit isn’t value $15 billion.

We’ll see what valuation Reddit chooses to go together with within the subsequent couple of months. Reddit will reportedly search to promote round 10% of its shares within the preliminary providing.