Where Reddit differs among its tech peers is in its striking dependence on its user base to keep things operational. Reddit must keep its users satisfied and its efforts to expand its limited (and already unpopular) advertising formats could send users packing. 98% of Reddit’s revenue is made up of advertising income. And of that, 26% came from just 10 ad clients in 2023. Investors will be watching this closely and expect more diversity sooner rather than later
No, its biggest risk is its CEO.
The CEO who got paid $193,000,000 last year?
Did any CEO do 193 million dollars worth of work last year? Almost certainly not, but who definitely did not? Spez. I think I’ll redirect my Internet traffic. I want to make sure I never, ever accidentally give that asshole any more unearned power, money, and fame…
Honestly, if one of reddit’s competitors tasked him with running reddit into the ground as effectively as possible, he’d be just about worth that figure by now.