this post was submitted on 28 Feb 2024
135 points (93.5% liked)

Reddit

13630 readers
1 users here now

founded 5 years ago
MODERATORS
norz@lemmy.ml
135
Wait. Why is Reddit losing so much money? (www.businessinsider.com)
submitted 8 months ago* (last edited 8 months ago) by spider@lemmy.nz to c/reddit@lemmy.ml
71 comments fedilink hide all child comments
 

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.

Internet Archive capture

you are viewing a single comment's thread
view the rest of the comments
[–] Dhs92@programming.dev 15 points 8 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 10 points 8 months ago* (last edited 8 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 8 months ago (1 children)

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

[–] livus@kbin.social 13 points 8 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 8 months ago

Yeah, sorry, I always mix up revenue and profit

[–] Chainweasel@lemmy.world 6 points 8 months ago

Nope, that was last year's income.