Wait. Why is Reddit losing so much money?

Tue, 02/27/2024 - 15:11

Reddit is losing money, it reports in its IPO documents. But why? It's at least partly because of R&D spending.

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Reddit is going public.
It lost nearly $91 million last year, the company said in its newly filed IPO documents.
Why's it losing so much? It's at least partly because it's spending so much on R&D.

Reddit is going public with a time-tested business model pioneered by the likes of Facebook and Twitter: Get people to give you content, for free, and sell ads on that content.

So why is it losing so much money?