this post was submitted on 28 Feb 2024
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Wait. Why is Reddit losing so much money? (www.businessinsider.com)
submitted 9 months ago* (last edited 9 months ago) by spider@lemmy.nz to c/reddit@lemmy.ml
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Reddit kind of anticipates this critique in its investor docs, and argues that it didn't really start operating as a serious business until 2018 when it finally started "meaningful monetization efforts" — that is, trying to make money for real.

But that's still six years ago. What has Reddit been doing since then?

One big, obvious answer: It has been hiring a lot of engineers and spending a lot of money on their salaries...

...What am I missing? I asked Reddit comms for comment but they declined, citing the company's quiet period before the IPO.

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[–] livus@kbin.social 40 points 9 months ago (2 children)

They would be in profit if they paid Spez and co normal amounts of money instead of nearly 200 million per year on Spez alone.

Basically Reddit is a scam in terms of investment.

[–] Dhs92@programming.dev 15 points 9 months ago (2 children)

Isn't his salary only 300k per year with 200mil being an estimate of what he'd make from the IPO

[–] livus@kbin.social 11 points 9 months ago* (last edited 9 months ago) (1 children)

@Dhs92 nope. His salary used to be 300k but last year he got paid $192 million, including stock etc.

[–] Kecessa@sh.itjust.works 12 points 9 months ago (1 children)

The stock options wouldn't have an impact on their current revenue though, would it?

[–] livus@kbin.social 13 points 9 months ago (1 children)

It would have an impact on their current profit or loss, yes. Stock options are an expense in accounting.

Even without the options though, look at the actual stock they handed out:

Huffman’s compensation package for 2023 was worth $193.2 million, which included salary of $341,346, stock awards worth $98.3 million and stock options valued at $93.8 million. Wong’s total comp of $92.5 million included a base salary of $583,820, stock awards of $45.7 million and stock options worth $45.7 million.

[–] Kecessa@sh.itjust.works 2 points 9 months ago

Yeah, sorry, I always mix up revenue and profit

[–] Chainweasel@lemmy.world 7 points 9 months ago

Nope, that was last year's income.

[–] spider@lemmy.nz 6 points 9 months ago* (last edited 9 months ago) (1 children)

Basically Reddit is a scam in terms of investment.

By the way, I think r/WallStreetBets users should set up an alternate community elsewhere (like here); I wouldn't put it past management to shut that sub down if users mention anything about torpedoing the IPO.

[–] livus@kbin.social 5 points 9 months ago

WallStreetBets users should really set up an alternate community elsewhere (like here)

Here as in the fediverse, maybe, I don't think lemmy.ml mods would be too welcoming, seeing as how they are marxist leninists. XD

Seriously though I'm sure WSB guys have a ton of offsite back channels. Aside from short squeezes that sub seems to be running pump and dump schemes.