Live data from Hacker News

Reddit: Return of the Junk Stock IPO

forbes.com

91–100 of 112 posts

Re: Reddit: Return of the Junk Stock IPO

#91
post #33
post #10

> 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. Total costs and expenses were $944.2 million. The net loss was $90.8 million, which at least is an improvement over 2022, with its $666.7 million in revenue and $158.6 million in losses. [1] These expenditures blow my mind. But if reddit can grow revenu…

Was also shocked by those numbers. And supposedly each DAU even generates more revenue than Pinterest and Snap - what is Reddit doing to make operations that much more expensive?

You need to have reddit admins that are paid employees of the company which meta-moderate. And you need to build out systems to give them information on the users so that they can make moderation decisions.

You need to build out anti-bot infrastructure. Arguably whatever infrastructure they have isn't keeping up at all with new challenges, but that infrastructure is probably miles more complicated than you think, even though it doesn't do its job well enough.

And your attacker is groups of humans, some of them probably funded, all of them able to organize on other sites like 4chan and 8chan. Reddit has largely managed to deal with shit like the old nazi babytalk subreddits that used to proliferate everywhere (shit like r/FrenWorld and its "six million nosefrens who love baking" lightly coded nazi shit). That takes effort to keep it from spreading all over your platform.

And that's on the front end dealing with the users. You still have to run a company that sells ads to its actual customers and you need to support all that infrastructure as well. And the corollary to that is that you have to deal with the nazi babytalk subreddits and stamp them out because nobody wants to see that spread all over your platform and advertisers will utterly lose their shit over it -- being a "free speech absolutionist" is going to be incredibly damaging to revenue.

Everyone here also hates the redesign, but it has been wildly successful at driving numbers. Everyone here hates the way that flood of users maximizes the Eternal September of reddit even harder, but that keeps all their numbers going up and to the right. Everyone hates the shitty issues with the redesign. But that effort probably long since paid for itself. Even image and video serving is doing well enough to keep users stuck to the site better and not going to competition and not seeing more ads. Even if it sucks, that probably helped revenue.

To do that all technically better, you're probably going to have to higher more expensive developers and take even bigger hits to the bottom line rather than firing half the company and even further dropping the balls that are being juggled.

They could of course kill all the attempts at shitcoin integration and probably fire half of middle management who keeps coming up with those kinds of ideas, but that's just US management disease.

HN loves to think that any one of us could rewrite reddit in a weekend, but only if you're looking at the easy part of the job which is building a web forum. Not if you're looking at the actual requirements of building out the most popular web forum in the world (or at least western world I guess, IDK what China has internally)

Re: Reddit: Return of the Junk Stock IPO

#92

Earlier quoted context omitted.

The video player is what drove me to use Apollo instead, and then killing Apollo was enough to drive me away entirely. It’s a great idea but management incompetence is huge. How many other major websites regularly piss of their users so much?

they killed RiF. i stopped going there entirely on mobile which was 90% of my visits. i never look at reddit when im bored now. on desktop, if RES and old.reddit stop working. ill never go back

RiF still works but you need to patch the APK with your own api key. There's guides online.

Re: Reddit: Return of the Junk Stock IPO

#93
post #68

Earlier quoted context omitted.

I'm no fan of Musk but his business acumen is undeniable.

Musk is successful despite himself, not because of. When he doesn't have a whole team of people keeping him from making insane statements/promises/business moves, the image of a successful, shrewd businessperson really crumbles. I'm not fooled by the illusion any longer, but I do understand it's hard to separate the things he's taken credit from other people for, vs the things he himself championed/implemented.

Yes, Elon accidentally fell into creating multiple billion dollar companies.

Re: Reddit: Return of the Junk Stock IPO

#94
post #68

Earlier quoted context omitted.

I'm no fan of Musk but his business acumen is undeniable.

If you say so. He single-handedly destroyed one of the best brands of the modern online era (tweet, Twitter, the bird logo) only to replace it with a brand identity that was stale 20 years ago and is commonly associated with porn. The site’s traffic continues to plummet and his investment is worth billions less since he unleashed his acumen.

He didn't buy Twitter to make money. He saw it as the propaganda tool that it had become, and bought it to rotate it 180 degrees and point it back in the opposite direction.

Re: Reddit: Return of the Junk Stock IPO

#95
post #68

Earlier quoted context omitted.

I'm no fan of Musk but his business acumen is undeniable.

Musk is successful despite himself, not because of. When he doesn't have a whole team of people keeping him from making insane statements/promises/business moves, the image of a successful, shrewd businessperson really crumbles. I'm not fooled by the illusion any longer, but I do understand it's hard to separate the things he's taken credit from other people for, vs the things he himself championed/implemented.

Congratulations, you've created an unfalsifiable worldview for yourself where Musk's outrageous success with Tesla and SpaceX has turned into evidence of his unhinged incompetence as a CEO.

Re: Reddit: Return of the Junk Stock IPO

#96

Earlier quoted context omitted.

If you say so. He single-handedly destroyed one of the best brands of the modern online era (tweet, Twitter, the bird logo) only to replace it with a brand identity that was stale 20 years ago and is commonly associated with porn. The site’s traffic continues to plummet and his investment is worth billions less since he unleashed his acumen.

He didn't buy Twitter to make money. He saw it as the propaganda tool that it had become, and bought it to rotate it 180 degrees and point it back in the opposite direction.

That's a really bold declaration, given how hard he tried to renege on the deal and how severely he tried to cut costs.

Re: Reddit: Return of the Junk Stock IPO

#97

Earlier quoted context omitted.

Simple answer: 2000 employees for a social media website doing 800 mil in revenue is too much(remember that mods are also not being paid which should technically be a tailwind to profitability). IMO once this is out in the open there will be no way around 30% headcount cut over 2-3 years. The monetization has also been very bad historically(selling awards is really dumb), so there are definitely ways to pump revenue…

> 2000 employees Reddit software developers are maintaining at least 5 different user interfaces: 1. Old Reddit (old.reddit.com) (no longer maintained, I guess) 2. New Reddit (new.reddit.com) (also no longer maintained?) 3. New New Reddit (aka Twitter Reddit, sh.reddit.com) 4. Mobile browser Reddit 5. Mobile app Reddit It takes a lot of work to keep all of those user interfaces crappy, slow, and hard to use.

> It takes a lot of work to keep all of those user interfaces crappy, slow, and hard to use.

They're slacking on Old Reddit. It is still usable with RES.

Re: Reddit: Return of the Junk Stock IPO

#98
post #89

Earlier quoted context omitted.

They’ve put a lot of research into making their mobile website unusable. These kinds of innovations aren’t cheap.

Desktop too. It is extremely slow while old.reddit.com is pretty fast.

it's really impressive what they've done. I don't think I've ever seen a web forum churn client CPU like reddit does

Re: Reddit: Return of the Junk Stock IPO

#99
post #56

Earlier quoted context omitted.

I'm actually 72 years old and this is my retirement hobby. It keeps my mind busy and I find it amusing.

Maybe try crosswords instead, or pick up an instrument. Less sophomoric, and likely more mentally engaging than trolling teenagers online.

Trolling is a art

Re: Reddit: Return of the Junk Stock IPO

#100
post #10

> 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. Total costs and expenses were $944.2 million. The net loss was $90.8 million, which at least is an improvement over 2022, with its $666.7 million in revenue and $158.6 million in losses. [1] These expenditures blow my mind. But if reddit can grow revenu…

I wonder what proportion of that (ridiculous) R&D figure consisted of infrastructure - I can only imagine that it was justified as an investment in network and compute infrastructure, rather than marketing research and development in the web apps (which is notoriously unstable and unusable on mobile)
Post reply on HN