Reddit falls short of ad target ahead of potential IPO, The Information says

If the market for initial public offerings recovers in the new year, one company that aims to go public early on is Reddit. An IPO will put the spotlight on the prospects for Reddit’s advertising business, which has fallen short of ambitious growth targets outlined by executives two years ago, The Information’s Cory Weinberg and Sahil Patel report. Reddit expects to finish this year with ad revenue up more than 20% to slightly over $800M, two people familiar with the matter said. While that’s a faster growth rate than firms like Snap (SNAP) and Pinterest (PINS) reported, Reddit had said two years ago it aimed to exceed $1B in ad revenue by 2023, up from around $350M in 2021. Ad executives say one reason Reddit fell short was the weakness in the ad market starting early last year, when rising interest rates caused marketers to pull back, the author adds.