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.
I receiced one of those special offer emails to buy stocks on Monday. Weren't those supposed to go only to power users? I haven't done anything with my account since the API debacle and wasn't a power user before.
I feel like their rug pull before the ipo doesn't work that good. I hope the gme bros will short reddit to the ground, that would be the best end to Reddit I can imagine. Fuck spez.
There are 54 pages of risk factors, which, after reading many S-1 filings over the years, seems pretty long. One of the most notable is the sentence, “We have incurred substantial losses during our history and may never achieve profitability.”
Whole thing is sketchy AF. I hope very few of its selected users falls for the scam invitation to buy early shares. They're not only exploiting them for free content and free moderation, they want them to help pay for Spez's ludicrous compensation.
In 2023, the company’s revenue was $804.0 million. Research and development, at $438.3 million, was more than half, an awfully big number for a company of this age.
What the heck are they doing‽
Edit: oops, Semi-Hemi-Demigod beat me to it. Hello, fellow binner!
I am curious. If you were a Chief officer or VP or something. What kind of changes would you do to make it profitable? Reduce server count? Roll back old.reddit? Just cut overhead? Get rid of Spez? How can they possibly make it profitable given where they are now?
It can't because it's actively hostile to the users that make it its content in favor of recreating a more massive version of the Stanford prison experiment. Although that seems to be a fad to the people naturally attracted to acting out their power fantasies in any sort of reddit-like social network, particularly those who want to act out Minority Report.
Anyone else here concerned about what this means for the health of the ecosystem? If reddit was never sustainable and we are well and truly past a phase of consolidation there is potentially a lot of history / info to loose here. The damage has been done already by the funding model. While the return to federation and private hosting is nice, there is a potential "dark" age.
I receiced one of those special offer emails to buy stocks on Monday. Weren't those supposed to go only to power users? I haven't done anything with my account since the API debacle and wasn't a power user before.
I feel like their rug pull before the ipo doesn't work that good. I hope the gme bros will short reddit to the ground, that would be the best end to Reddit I can imagine. Fuck spez.