REDDIT, INC., 10-K filed on 2/13/2025
Annual Report
v3.25.0.1
Cover - USD ($)
$ in Billions
12 Months Ended
Dec. 31, 2024
Feb. 05, 2025
Jun. 28, 2024
Document Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2024    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 001-41983    
Entity Registrant Name Reddit, Inc.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 45-2546501    
Entity Address, Address Line One 303 2nd Street    
Entity Address, Address Line Two South Tower    
Entity Address, Address Line Three 5th Floor    
Entity Address, City or Town San Francisco    
Entity Address, State or Province CA    
Entity Address, Postal Zip Code 94107    
City Area Code 415    
Local Phone Number 494-8016    
Title of 12(b) Security Class A common stock, par value $0.0001 per share    
Trading Symbol RDDT    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Non-accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag false    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Documents Incorporated by Reference
Portions of the registrant’s definitive Proxy Statement for the registrant’s 2025 Annual Meeting of Stockholders, which will be filed with the Securities and Exchange Commission within 120 days of the fiscal year ended December 31, 2024, are incorporated by reference in Part III of this Annual Report on Form 10-K.
   
Document Fiscal Year Focus 2024    
Document Fiscal Period Focus FY    
Entity Central Index Key 0001713445    
Amendment Flag false    
Entity Public Float     $ 10.4
Class A      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   125,531,501  
Class B      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   55,372,848  
v3.25.0.1
Audit Information
12 Months Ended
Dec. 31, 2024
Audit Information [Abstract]  
Auditor Firm ID 185
Auditor Name KPMG LLP
Auditor Location San Francisco, California
v3.25.0.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Current assets:    
Cash and cash equivalents $ 562,092 $ 401,176
Marketable securities 1,278,717 811,946
Accounts receivable, net 349,534 245,279
Prepaid expenses and other current assets 33,058 21,286
Total current assets 2,223,401 1,479,687
Property and equipment, net 12,652 14,946
Operating lease right-of-use assets, net 23,249 24,008
Intangible assets, net 25,424 32,147
Goodwill 42,174 26,299
Other noncurrent assets 9,695 19,380
Total assets 2,336,595 1,596,467
Current liabilities:    
Accounts payable 45,423 46,514
Operating lease liabilities 6,137 3,707
Accrued expenses and other current liabilities 124,464 83,349
Total current liabilities 176,024 133,570
Operating lease liabilities, noncurrent 20,565 22,040
Other noncurrent liabilities 9,257 287
Total liabilities 205,846 155,897
Commitments and contingencies (Note 11)
Convertible preferred stock, par value $0.0001 per share; no and 86,864,781 shares authorized as of December 31, 2024 and 2023, respectively; no and 73,021,449 shares issued and outstanding as of December 31, 2024 and 2023, respectively; aggregate liquidation preference of $0 and $1,847,993 as of December 31, 2024 and 2023, respectively   1,853,492
Equity [Abstract]    
Preferred stock, par value $0.0001 per share; 100,000,000 and no shares authorized as of December 31, 2024 and 2023, respectively; no shares issued and outstanding as of December 31, 2024 and 2023 0 0
Additional paid-in capital 3,331,546 302,820
Accumulated other comprehensive income (loss) 24 814
Accumulated deficit (1,200,838) (716,562)
Total stockholders’ equity (deficit) 2,130,749 (412,922)
Total liabilities, convertible preferred stock, and stockholders’ equity (deficit) 2,336,595 1,596,467
Class A    
Equity [Abstract]    
Common stock 12 0
Class B    
Equity [Abstract]    
Common stock 5 6
Class C common stock    
Equity [Abstract]    
Common stock $ 0 $ 0
v3.25.0.1
Consolidated Balance Sheets (Parentheticals) - USD ($)
Dec. 31, 2024
Dec. 31, 2023
Convertible preferred stock, par value (in dollars per share)   $ 0.0001
Convertible preferred stock, shares authorized (in shares)   86,864,781
Convertible preferred stock, shares issued (in shares)   73,021,449
Convertible preferred stock, shares outstanding (in shares)   73,021,449
Convertible preferred stock, aggregate liquidation preference   $ 1,847,993,000
Preferred stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Preferred stock, shares authorized (in shares) 100,000,000 0
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Class A    
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, shares authorized (in shares) 2,000,000,000 189,000,000
Common stock, shares issued (in shares) 125,001,880 7,099,700
Common stock, shares outstanding (in shares) 125,001,880 7,099,700
Class B    
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, shares authorized (in shares) 140,000,000 142,000,000
Common stock, shares issued (in shares) 55,314,099 53,904,204
Common stock, shares outstanding (in shares) 55,314,099 53,904,204
Class C common stock    
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, shares authorized (in shares) 100,000,000 0
Common stock, shares issued (in shares) 0 0
Common stock, shares outstanding (in shares) 0 0
v3.25.0.1
Consolidated Statements of Operations - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Statement [Abstract]      
Revenue $ 1,300,205 $ 804,029 $ 666,701
Costs and expenses:      
Cost of revenue 123,595 111,011 104,799
Research and development 935,152 438,346 365,164
Sales and marketing 350,579 230,175 225,078
General and administrative 451,447 164,658 143,822
Total costs and expenses 1,860,773 944,190 838,863
Income (loss) from operations (560,568) (140,161) (172,162)
Other income (expense), net 75,361 53,138 14,234
Income (loss) before income taxes (485,207) (87,023) (157,928)
Income tax expense (benefit) (931) 3,801 622
Net income (loss) $ (484,276) $ (90,824) $ (158,550)
Net income (loss) per share attributable to Class A and Class B common stock, basic (in dollars per share) $ (3.33) $ (1.54) $ (2.77)
Net income (loss) per share attributable to Class A and Class B common stock, diluted (in dollars per share) $ (3.33) $ (1.54) $ (2.77)
Weighted-average shares of Class A and Class B common stock used to compute net income (loss) per share attributable to common stockholders, basic (in shares) 145,472,389 59,138,086 57,251,112
Weighted-average shares of Class A and Class B common stock used to compute net income (loss) per share attributable to common stockholders, basic (in shares) 145,472,389 59,138,086 57,251,112
v3.25.0.1
Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Statement of Comprehensive Income [Abstract]      
Net income (loss) $ (484,276) $ (90,824) $ (158,550)
Other comprehensive income (loss), net of tax:      
Unrealized holding gains (losses) on marketable securities 258 4,606 (3,554)
Change in foreign currency translation adjustment (1,048) 0 0
Net comprehensive income (loss) $ (485,066) $ (86,218) $ (162,104)
v3.25.0.1
Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($)
$ in Thousands
Total
Conversion of Class B common stock to Class A common stock
Conversion of redeemable convertible preferred stock to common stock in connection with initial public offering
Additional Paid-in Capital
Additional Paid-in Capital
Conversion of redeemable convertible preferred stock to common stock in connection with initial public offering
Accumulated Other Comprehensive Income (Loss)
Accumulated Deficit
Class A
Class A
Common Stock
Class A
Common Stock
Conversion of Class B common stock to Class A common stock
Class A
Common Stock
Conversion of redeemable convertible preferred stock to common stock in connection with initial public offering
Class A
Additional Paid-in Capital
Class B
Class B
Common Stock
Class B
Common Stock
Conversion of Class B common stock to Class A common stock
Class B
Common Stock
Conversion of redeemable convertible preferred stock to common stock in connection with initial public offering
Beginning balance (in shares) at Dec. 31, 2021 73,021,449                              
Beginning balance at Dec. 31, 2021 $ 1,853,492                              
Ending balance (in shares) at Dec. 31, 2022 73,021,449                              
Ending balance at Dec. 31, 2022 $ 1,853,492                              
Beginning balance (in shares) at Dec. 31, 2021                 5,166,855         51,212,674    
Beginning balance at Dec. 31, 2021 (286,013)     $ 181,407   $ (238) $ (467,188)   $ 0         $ 6    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                
Issuance of common stock upon exercise of stock options, net (in shares)                 976,178         197,437    
Issuance of common stock upon exercise of stock options, net 7,034     7,034                        
Issuance of restricted stock awards (in shares)                 174,056              
Issuance of common stock upon settlement of restricted stock units, net (in shares)                 2,786              
Issuance of common stock upon settlement of restricted stock units, net (105)     (105)                        
Issuance of Class A common stock in connection with acquisitions (in shares)                 62,061              
Issuance of Class A common stock in connection with acquisitions 4,522     4,522                        
Stock-based compensation expense 55,310     55,310                        
Vesting of early exercised stock options 2,292     2,292                        
Net income (loss) (158,550)           (158,550)                  
Change in other comprehensive income (loss) (3,554)         (3,554)                    
Ending balance (in shares) at Dec. 31, 2022                 6,381,936         51,410,111    
Ending balance at Dec. 31, 2022 $ (379,064)     250,460   (3,792) (625,738)   $ 0         $ 6    
Ending balance (in shares) at Dec. 31, 2023 73,021,449                              
Ending balance at Dec. 31, 2023 $ 1,853,492                              
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                
Issuance of common stock upon exercise of stock options, net (in shares)                 489,959         2,494,093    
Issuance of common stock upon exercise of stock options, net 8,390     8,390                        
Issuance of common stock upon settlement of restricted stock units, net (in shares)                 227,805              
Issuance of common stock upon settlement of restricted stock units, net (4,320)     (4,320)                        
Stock-based compensation expense 47,598     47,598                        
Vesting of early exercised stock options 692     692                        
Net income (loss) (90,824)           (90,824)                  
Change in other comprehensive income (loss) 4,606         4,606                    
Ending balance (in shares) at Dec. 31, 2023               7,099,700 7,099,700       53,904,204 53,904,204    
Ending balance at Dec. 31, 2023 $ (412,922)     302,820   814 (716,562)   $ 0         $ 6    
Increase (Decrease) in Temporary Equity [Roll Forward]                                
Conversion of redeemable convertible preferred stock to common stock in connection with initial public offering (in shares) (73,021,449)                              
Conversion of redeemable convertible preferred stock to common stock in connection with initial public offering $ (1,853,492)                              
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                
Issuance of common stock upon exercise of stock options, net (in shares) 15,018,424               10,979,938         4,038,255    
Issuance of common stock upon exercise of stock options, net $ 88,972     88,972                        
Issuance of common stock upon settlement of restricted stock units, net (in shares)                 11,501,630         1,002,455    
Issuance of common stock upon settlement of restricted stock units, net (294,571)     (294,572)         $ 1              
Conversion of stock (in shares)                   71,548,247 5,104,017       (71,548,247) 67,917,432
Conversion of stock   $ 0 $ 1,853,494   $ 1,853,486         $ 8 $ 1       $ (8) $ 7
Issuance of common stock in connection with initial public offering, net of underwriting discounts and commissions and other offering costs (in shares)                 18,576,527              
Issuance of common stock in connection with initial public offering, net of underwriting discounts and commissions and other offering costs 576,268     576,266         $ 2              
Issuance of Class A common stock in connection with acquisitions (in shares)                 191,821              
Issuance of Class A common stock in connection with acquisitions 2,786                     $ 2,786        
Stock-based compensation expense 801,646     801,646                        
Vesting of early exercised stock options 142     142                        
Net income (loss) (484,276)           (484,276)                  
Change in other comprehensive income (loss) (790)         (790)                    
Ending balance (in shares) at Dec. 31, 2024               125,001,880 125,001,880       55,314,099 55,314,099    
Ending balance at Dec. 31, 2024 $ 2,130,749     $ 3,331,546   $ 24 $ (1,200,838)   $ 12         $ 5    
v3.25.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Cash flows from operating activities      
Net income (loss) $ (484,276) $ (90,824) $ (158,550)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:      
Depreciation and amortization 15,643 13,702 8,000
Non-cash operating lease cost 4,110 11,359 10,464
Amortization of premium (accretion of discount) on marketable securities, net (43,400) (27,442) (3,264)
Stock-based compensation expense 801,646 47,598 55,310
Other adjustments (4,187) 484 4,099
Changes in operating assets and liabilities:      
Accounts receivable (104,280) (53,318) (30,230)
Prepaid expenses and other assets (19,485) 3,878 (1,911)
Operating lease right-of-use assets and liabilities (2,397) (5,758) (10,325)
Accounts payable (570) 12,470 10,905
Accrued expenses and other liabilities 59,264 12,737 21,481
Net cash provided by (used in) operating activities 222,068 (75,114) (94,021)
Cash flows from investing activities      
Purchases of property and equipment (6,248) (9,724) (6,233)
Proceeds from sale of cryptocurrency 6,869 0 0
Purchases of marketable securities (1,996,725) (1,259,854) (1,430,589)
Maturities of marketable securities 1,573,602 1,273,159 674,399
Proceeds from sale of marketable securities 0 37,538 500
Cash paid for acquisitions, net of cash acquired (17,137) 0 (42,196)
Other investing activities (1,048) 172 (64)
Net cash provided by (used in) investing activities (440,687) 41,291 (804,183)
Cash flows from financing activities      
Proceeds from issuance of Class A common stock in initial public offering, net of underwriting discounts and commissions 600,022 0 0
Proceeds from exercise of employee stock options 88,972 8,428 7,034
Taxes paid related to net share settlement of restricted stock units (294,573) (4,320) 0
Payments of initial public offering costs (8,775) (1,441) (9,796)
Payments of deferred consideration and holdbacks for acquisitions (6,111) (3,478) 0
Other financing activities 0 0 (1,022)
Net cash provided by (used in) financing activities 379,535 (811) (3,784)
Net increase (decrease) in cash, cash equivalents, and restricted cash 160,916 (34,634) (901,988)
Cash, cash equivalents, and restricted cash at the beginning of the period 401,226 435,860 1,337,848
Cash, cash equivalents, and restricted cash at the end of the period 562,142 401,226 435,860
Cash and cash equivalents 562,092 401,176 435,810
Restricted cash 50 50 50
Total cash, cash equivalents, and restricted cash 562,142 401,226 435,860
Supplemental disclosure of noncash financing and investing activities      
Conversion of convertible preferred stock to common stock upon initial public offering 1,853,492 0 0
Reclassification of deferred offering costs to additional paid-in capital upon initial public offering $ 23,754 $ 0 $ 0
v3.25.0.1
Description of Business
12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of Business
1. Description of Business
Reddit, Inc. (“Reddit,” “we,” “our,” or “us”) was incorporated in the state of Delaware. Our mission is to empower communities and make their knowledge accessible to all. We built Reddit with the belief that communities unlock the power of human creativity and create a sense of belonging and empowerment for their members. We believe the world needs community more than ever, and that this represents our greatest opportunity to further enrich the lives of everyone in the world. We are headquartered in San Francisco, California, and have several offices around the world.
v3.25.0.1
Basis of Presentation and Significant Accounting Policies
12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation and Significant Accounting Policies
2. Basis of Presentation and Significant Accounting Policies
Basis of Presentation
Our consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). Our consolidated financial statements include the accounts of Reddit, Inc. and our wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.
Initial Public Offering
On March 20, 2024, our initial public offering (“IPO”) was declared effective and our Class A common stock began trading on the New York Stock Exchange on March 21, 2024. On March 25, 2024, we completed our IPO in which we issued and sold 18,576,527 shares of Class A common stock, including 3,300,000 shares of Class A common stock pursuant to the underwriters’ exercise in full of their over-allotment option, and excluding 6,723,473 shares of Class A common stock sold in the IPO by certain of our existing stockholders, at a public offering price of $34.00 per share. We received net proceeds of $600.0 million after deducting underwriting discounts and commissions of $31.6 million. In connection with the closing of the IPO, all shares of our then-outstanding convertible preferred stock other than Series F-1 preferred stock automatically converted into an aggregate of 67,917,432 shares of Class B common stock and all then-outstanding shares of Series F-1 preferred stock automatically converted into 5,104,017 shares of Class A common stock. Following the IPO, we have three classes of authorized common stock — Class A common stock, Class B common stock, and Class C common stock.
Certain of our restricted stock units granted to employees included both service-based and performance-based vesting conditions (“Double Trigger RSUs”). The performance condition related to these awards was satisfied upon the effectiveness of the IPO. Upon the effectiveness of the IPO, we recognized $534.7 million of stock-based compensation expense. To meet the related tax withholding requirements, we withheld 4,861,113 shares of the 10,502,390 shares of Class A common stock issued and 723,341 shares of the 1,347,456 shares of Class B common stock issued. Based on the IPO public offering price of $34.00 per share, the tax withholding obligation was $189.9 million.
In connection with our IPO, we amended and restated our certificate of incorporation (“Restated Certificate”) which authorized 2,340,000,000 shares of capital stock, consisting of 2,000,000,000 shares of Class A common stock, 140,000,000 shares of Class B common stock, 100,000,000 shares of Class C common stock, and 100,000,000 shares of undesignated preferred stock.
Use of Estimates
The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Management’s estimates are based on historical information available as of the date of the consolidated financial statements and various other assumptions that we believe are reasonable under the circumstances. Actual results could differ materially from those estimates.
Significant estimates relate primarily to determining the fair value of stock-based awards, the fair value of assets and liabilities assumed in business combinations, and the incremental borrowing rate used to determine operating lease right-of-use assets and lease liabilities. On an ongoing basis, management evaluates our estimates compared to historical experience and trends, which form the basis for making judgments about the carrying value of assets and liabilities.
Revenue Recognition
We generate a majority of our revenue through the sale of advertising on our mobile applications and website. Other revenue consists of revenue from content licensing, Reddit Premium subscriptions, and products within our user economy.
We determine revenue recognition by identifying the contract or contracts with a customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations in the contract, and recognizing revenue when, or as, we satisfy a performance obligation.
For customer contracts that include multiple performance obligations, we identify each distinct performance obligation and determine the transaction price, which may include an estimation of variable consideration, subject to constraint. The transaction price is allocated to each performance obligation using the stand-alone selling price, which is generally based on the observable price of each good or service.
Payments for revenue arrangements are due based on the contractually stated payment terms, usually within 30 to 60 days. Sales and other similar taxes are excluded from revenue.
Advertising Revenue
We recognize advertising revenue only after transferring control of promised goods or services to customers, which occurs when a user clicks on an ad contracted on a cost per click (“CPC”) basis, views an ad contracted on a cost per thousand impressions (“CPM”) basis, views a video ad contracted on a cost per view (“CPV”) basis, or on a fixed fee basis, based upon ad delivery over the service period, which is typically less than 30 days in duration. Generally, we recognize advertising revenue on a gross basis since we control the advertising units before being transferred to our users. In arrangements where another party is involved in providing specified services to a customer, we evaluate whether we are the principal or agent. In this evaluation, we consider if we obtain control of the specified goods or services before they are transferred to the customer. For advertising revenue arrangements where we are not the principal, we recognize revenue on a net basis. For the periods presented, revenue for arrangements where we are the agent was not material.
The transaction price in advertising arrangements is generally calculated as the number of advertising units delivered multiplied by the contractually agreed upon CPC, CPM, or CPV, or on a fixed fee basis and revenue is recognized based on the number of clicks, impressions, or views, or ratable over the service period, respectively.
Other Revenue
In our content licensing arrangements, we provide customers with the right to access content from our platform over the contractual period. The transaction price in content licensing arrangements is generally a fixed fee or usage-based fee. We recognize content licensing revenue as our content partners consume and benefit from their use of the licensed content, which is generally ratably over the license period. We recognize Reddit Premium subscription revenue ratably over the subscription period, which is generally less than one year. Products within our user economy include Reddit Gold and Collectible Avatars. Revenue from Reddit Gold and Collectible Avatars was not material for the years ended December 31, 2024, 2023, and 2022.
Cost of Revenue
Cost of revenue consists primarily of payments to third parties for the cost of hosting and supporting our mobile applications and website. In addition, cost of revenue includes expenses directly associated with the delivery of our advertising and other services, including advertising measurement services and credit card and other transaction processing fees. Cost of revenue also consists of employee-related costs, including salaries, benefits, and stock-based compensation.
Research and Development Expenses
Research and development expenses consist primarily of employee-related costs including salaries, benefits, and stock-based compensation for engineers and other employees engaged in the research, design, and development of new and existing products. Research and development expenses also include professional services and hosting costs associated with internal research and development activities, as well as allocated facilities and other supporting overhead costs.
Sales and Marketing Expenses
Sales and marketing expenses consist primarily of employee-related costs including salaries, benefits, and stock-based compensation for employees engaged in sales, sales support, business and brand development, marketing, and customer service functions. Sales commissions are expensed as incurred in sales and marketing expenses as the expected period of benefit is one year or less. Sales and marketing expenses also include costs incurred for advertising, market research, branding, professional services, marketing, and promotional expenditures, as well as allocated facilities and other supporting overhead costs.
General and Administrative Expenses
General and administrative expenses consist primarily of employee-related costs including salaries, benefits, and stock-based compensation for certain executives as well as employees engaged in finance, legal, human resources, information technology, communications, and other administrative teams. General and administrative expenses also include costs incurred for professional services, as well as allocated facilities and other supporting overhead costs.
Advertising Costs
Advertising costs are expensed as incurred and were $9.2 million, $8.2 million, and $34.4 million for the years ended December 31, 2024, 2023, and 2022 respectively.
Stock-Based Compensation
We measure and recognize compensation expense for stock-based awards, including restricted stock units (“RSUs”), restricted stock awards (“RSAs”), and stock options granted to employees and non-employees based on the grant date fair value of the awards granted. Prior to the IPO, for secondary sale transactions with existing investors, we recognized stock-based compensation expense representing the excess of the purchase price over the fair value of our common stock on the date of the transaction.
Income Taxes
We account for income taxes using an asset and liability approach. Under this method, the tax provision includes taxes currently due plus the net change in deferred tax assets and liabilities. Deferred tax assets and liabilities arise from temporary differences between the tax basis of an asset or liability and its reported amount in the consolidated financial statements, as well as from net operating loss and tax credit carryforwards. Deferred tax amounts are determined by using the tax rates expected to be in effect when the taxes will be paid or refund received, as provided for under currently enacted tax law. In assessing the need for a valuation allowance, we consider both positive and negative evidence related to the likelihood of realization of the deferred tax assets. If, based on the weight of available evidence, it is more likely than not that the deferred tax assets will not be realized, a valuation allowance is recorded. Should there be a change in the ability to recover deferred tax assets, the income tax provision would increase or decrease in the period in which the assessment is changed.
We recognize the effect of income tax positions only if those positions are more likely than not to be sustained. Recognized income tax positions are measured at the largest amount that has a greater than 50% likelihood of being realized. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Any interest and penalties related to unrecognized tax benefits are recognized as income tax expense in the consolidated statements of operations.
Functional Currency
Generally, the U.S. dollar is the functional currency for our subsidiaries, and therefore, foreign currency denominated monetary assets and liabilities are remeasured into U.S. dollars at exchange rates at the balance sheet date and foreign currency denominated non-monetary assets and liabilities are remeasured into U.S. dollars at historical exchange rates. Gains or losses from foreign currency remeasurement and settlements are included in other income (expense), net in the consolidated statements of operations. Net foreign exchange gains and losses were not material for the years ended December 31, 2024, 2023, and 2022.
On January 1, 2024, we changed the functional currency of our U.K. subsidiary, Reddit UK Limited, from the U.S. dollar to the British pound. The change in functional currency is due primarily to the increased exposure to the British pound as our future operating cash flows for our U.K. subsidiary are expected to be in British pounds. We translate the financial statements of the U.K. subsidiary to U.S. dollars at exchange rates at the balance sheet date for assets and liabilities and at monthly average exchange rates for revenues and expenses. Translation gains and losses are recorded in accumulated other comprehensive income (loss) as a component of stockholders' equity (deficit). The change in the functional currency of Reddit UK Limited was accounted for prospectively from January 1, 2024 and did not have a material impact on our consolidated financial statements.
Cash, Cash Equivalents, and Restricted Cash
Cash and cash equivalents consist of highly liquid investments with original maturities of 90 days or less from the date of purchase. We define restricted cash as cash that cannot be withdrawn or used for general operating activities. Restricted cash is classified as current or noncurrent assets based on the contractual or estimated term of the remaining restriction. As of
December 31, 2024 and 2023, restricted cash included in other noncurrent assets in the consolidated balance sheets was not material.
Marketable Securities
We hold investments in marketable securities consisting of U.S. and non-U.S. government securities, investment-grade corporate and government agency securities, certificates of deposit, and commercial paper. We classify our marketable securities as available-for-sale investments in current assets because they represent investments available for current operations. Our available-for-sale investments are carried at fair value with any unrealized gains and losses included in accumulated other comprehensive income (loss) in stockholders’ equity (deficit). Expected losses from credit related impairment, if any, are recognized through an allowance for credit losses and adjusted each period for changes in credit risk. Gains or losses on the sale or maturities of marketable securities are determined using the specific identification method and recorded in other income (expense), net in our consolidated statements of operations.
Fair Value Measurements
Certain financial instruments are required to be recorded at fair value. Other financial instruments, including cash, cash equivalents, and restricted cash, are recorded at cost, which approximates fair value. Additionally, the carrying amounts of accounts receivable, prepaid expenses and other current assets, accounts payable, and accrued expenses and other current liabilities approximate fair value due to their short-term nature.
Accounts Receivable, Net
Accounts receivable are recorded at the invoiced amount, net of any allowance for doubtful accounts due to expected credit losses and potentially uncollectible receivables. We apply a “single loss” rate approach to the overall accounts receivable portfolio and also evaluate the aging, historical write-offs, and collectability of accounts receivable on a customer-by-customer basis. The allowance for doubtful accounts was immaterial as of December 31, 2024 and 2023.
Contract Assets
When revenue recognition exceeds the amounts billable on a contract, the difference is recorded as a contract asset. The current portion of contract assets included within accounts receivable, net, and the noncurrent portion of contract assets included within other noncurrent assets on the consolidated balance sheets were not material as of December 31, 2024 and 2023.
Property and Equipment, Net
Property and equipment are stated at cost, less accumulated depreciation. We compute depreciation using the straight-line method over the estimated useful lives of the assets, which is generally three to five years for computer equipment, furniture, and fixtures. Leasehold improvements are depreciated over the shorter of the lease term or the useful life of the assets. Maintenance and repairs are expensed as incurred.
Software Development Costs
Software development costs include costs to develop software to be used to meet internal needs and applications used to deliver our services. We capitalize development costs related to these software applications once the preliminary project stage is complete, it is probable that the project will be completed, and the software will be used to perform the function intended. Due to the iterative process of our development projects, development costs meeting our capitalization criteria were not material for the periods presented.
Leases
Leases arise from contractual obligations that convey the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. We determine if a contract is, or contains, a lease at contract inception. All of our leases are operating leases and are included in operating lease right-of-use assets, net, operating lease liabilities, and operating lease liabilities, non-current on the consolidated balance sheets.
Operating lease right-of-use assets and operating lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term discounted using our incremental borrowing rate. Operating lease right-of-use assets also include any lease payments made and exclude lease incentives. As our leases do not provide an implicit rate,
the incremental borrowing rate used is estimated based on what we would have to pay on a collateralized basis over a similar term as the lease. Lease payments include fixed payments and any variable payments based on an index or rate, and are recognized as lease expense on a straight-line basis over the term of the lease.
Deferred Offering Costs
Prior to our IPO, deferred offering costs, which consisted of direct incremental legal, accounting, consulting, and other fees related to the IPO, were capitalized in other noncurrent assets on the consolidated balance sheets. After the IPO, the deferred offering costs were reclassified into additional paid-in capital as an offset against IPO proceeds. Deferred offering costs included in other noncurrent assets were $16.5 million as of December 31, 2023.
Business Combinations
We include the results of operations of the businesses that we acquire from the date of acquisition. We determine the fair value of the assets acquired and liabilities assumed based on their estimated fair values as of the respective date of acquisition. The excess purchase price over the fair values of identifiable assets and liabilities is recorded as goodwill. Determining the fair value of assets acquired and liabilities assumed requires management to use significant judgment and estimates including the selection of valuation methodologies, estimates of future revenues and cash flows, discount rates, and selection of comparable companies. Our estimates of fair value are based on assumptions believed to be reasonable, but are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates.
When we issue cash payments or grants of equity to selling stockholders in connection with an acquisition, we evaluate whether the payments or awards are compensatory. This evaluation includes whether cash payments or stock award vesting is contingent on the continued employment of the selling stockholder beyond the acquisition date. If continued employment is required for the cash to be paid or stock awards to vest, the award is treated as compensation for post-acquisition services and is recognized as compensation expense.
Transaction costs associated with business combinations are expensed as incurred and are included in general and administrative expenses in our consolidated statements of operations.
Goodwill
Goodwill represents the excess of the aggregate purchase consideration over the fair value of net assets acquired in a business combination. We perform our annual impairment test on October 1. We also test for impairment whenever events or circumstances indicate that the fair value of goodwill has been impaired. Our impairment tests are based on a single operating segment and reporting unit structure. No impairment charges were recorded during the years ended December 31, 2024, 2023, and 2022.
Acquired Intangible Assets
Identifiable acquired intangible assets consist primarily of acquisition-related developed technology. We determine the appropriate useful life of our intangible assets by performing an analysis of expected cash flows of the acquired assets. Intangible assets are amortized on a straight-line basis over the estimated useful life of up to five years.
Cryptocurrency
We account for cryptocurrency investments, and cryptocurrency received in exchange for goods and services, as intangible assets with indefinite useful lives, which are measured at cost, net of any impairment losses incurred since acquisition, on the consolidated balance sheets. Cryptocurrency accounted for as intangible assets are not amortized, but assessed for impairment quarterly, or more frequently, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite-lived asset is impaired.
The computation of gains or losses on the sale of cryptocurrency, or use of cryptocurrency to settle any obligations, is based on the difference between the market price quoted on our principal market for cryptocurrencies at the time of sale or settlement and the cost basis of the cryptocurrency, which is determined on a first-in, first-out basis. During the year ended December 31, 2024, we sold the majority of our cryptocurrency portfolio, which consisted primarily of Bitcoin and Ether. The net carrying value of our cryptocurrencies and all related cryptocurrency activity, including the gain recognized on sale, was immaterial for the periods presented.
Impairment of Long-Lived Assets
We evaluate recoverability of our property and equipment and definite-lived intangible assets when events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Events and changes in circumstances considered in determining whether the carrying value of long-lived assets may not be recoverable include significant changes in performance relative to expected operating results, significant changes in asset use, significant negative industry or economic trends, and changes in our business strategy. Recoverability of these assets is measured by comparison of their carrying amount to future undiscounted cash flows to be generated. If impairment is indicated based on a comparison of the assets’ carrying values and the undiscounted cash flows, the impairment loss is measured as the amount by which the carrying amount exceeds the fair value of the assets. We determined that there were no events or changes in circumstances that indicated our long-lived assets were impaired during the periods presented.
Concentration of Business Risk
We primarily use Amazon Web Services and Google Cloud Platform for our hosting requirements. A disruption or loss of service from Amazon Web Services or Google Cloud Platform could harm our ability to operate. Although we believe there are other qualified providers that can provide these services, a transition to a new provider could create a disruption to our business and negatively impact our operating results.
Concentration of Credit Risk
Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash and cash equivalents, restricted cash, marketable securities, and accounts receivable. We maintain cash and cash equivalents with several financial institutions. We believe that the financial institutions that hold our cash and cash equivalents are financially sound and, accordingly, minimal credit risks exist with respect to these balances. We maintain investments in U.S. and non-U.S. government securities, investment-grade corporate and government agency securities, certificates of deposit, commercial paper, and money market accounts that carry high credit ratings and accordingly, minimal credit risk exists with respect to these balances.
No customer accounted for greater than 10% of our revenues for the years ended December 31, 2024, 2023, and 2022. No customer accounted for greater than 10% of our accounts receivable as of December 31, 2024 and 2023.
Segments
We have determined that we have a single operating segment. Our Chief Executive Officer is our chief operating decision maker who evaluates performance and makes operating decisions about allocating resources based on consolidated financial data.
Emerging Growth Company Status
As of December 31, 2024, we lost our status as an emerging growth company as defined in the JOBS Act. As a result, we are no longer entitled to take advantage of specified reduced reporting requirements and relief from certain other significant requirements that are otherwise generally applicable to public companies.
As an emerging growth company, we previously elected to leverage the provision of the JOBS Act that allows an emerging growth company to delay the adoption of some accounting standards until those standards would otherwise apply to private companies. We elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies through December 31, 2022. As a result, our financial statements for the year ended December 31, 2022 may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates. Beginning January 1, 2023, we elected to irrevocably opt out of the extended transition period provided in the JOBS Act and began to comply with new or revised accounting standards at the time when adoption of such standards was required for public companies that are non-emerging growth companies.
Recently Adopted Accounting Pronouncements
In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires disclosure of incremental segment information on an annual and interim basis. All disclosure requirements of this standard are required for entities with a single reportable segment. We adopted this standard effective January 1, 2024. Adoption of this standard resulted
in additional segment-related disclosures made in Note 18—Segment and Geographic Information, but did not impact our consolidated financial statements.
Accounting Pronouncements Not Yet Adopted
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires an entity to disclose specific categories in the effective tax rate reconciliation as well as provide additional information for reconciling items that meet a quantitative threshold. This standard also requires certain disaggregated disclosures related to income from continuing operations, income tax expense, and income taxes paid. The standard is effective for us beginning January 1, 2025, with early adoption permitted. We are currently evaluating the impact the adoption will have on our disclosures.
In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires an entity to disclose disaggregated information about certain income statement expense line items. The standard is effective for us beginning January 1, 2027, with early adoption permitted. We are currently evaluating the impact the adoption will have on our disclosures.
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Revenue
12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenue
3. Revenue
The following table represents our revenue disaggregated by source:
Year ended December 31,
202420232022
(in thousands)
Advertising revenue $1,185,456 $788,782 $652,562 
Other revenue 114,749 15,247 14,139 
Total revenue $1,300,205 $804,029 $666,701 
The following table represents our revenue disaggregated by geography based on the billing address of the customer:
Year ended December 31,
202420232022
(in thousands)
United States $1,063,556 $651,378 $548,964 
Rest of world(1)
236,649 152,651 117,737 
Total revenue $1,300,205 $804,029 $666,701 
______________
(1)Other than the United States, no individual country represented 10% or more of total revenue during the years ended December 31, 2024, 2023, and 2022.
Deferred revenue was $14.9 million and $7.4 million as of December 31, 2024 and December 31, 2023, respectively. For the years ended December 31, 2024, 2023, and 2022, revenue recognized from the deferred revenue balance at the beginning of each period was $7.2 million, $7.8 million, and $6.5 million, respectively.
As of December 31, 2024, the aggregate amount of remaining performance obligations in contracts with an original expected duration exceeding one year is $252.9 million. This amount consists primarily of long-term content licensing contracts and excludes deferred revenue related to short-term advertising contracts and Reddit Premium subscriptions. We expect to recognize $114.6 million in 2025, $113.2 million in 2026, and $25.1 million in 2027.
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Net Income (Loss) per Share
12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
Net Income (Loss) per Share
4. Net Income (Loss) per Share
We compute net income (loss) per share of Class A and Class B common stock using the two-class method required for multiple classes of common stock and participating securities. Prior to the IPO, our participating securities included Series A, Series A-1, Series B, Series C, Series D, Series D-1, Series E, Series F, and Series F-1 convertible preferred stock, as the holders of these series of preferred stock were entitled to receive noncumulative dividends subject to certain requirements at an annual rate of 8% of the respective original issue price then in effect in the event that a dividend was paid on common stock.
In connection with our IPO, our Series A, Series A-1, Series B, Series C, Series D, Series D-1, Series E, and Series F preferred stock converted on a one-to-one basis into 67,917,432 shares of Class B common stock, and our Series F-1 preferred stock converted on a one-to-one basis into 5,104,017 shares of Class A common stock. These shares are weighted in the denominator of net income (loss) per share for Class A and Class B common stock for the portion of the time outstanding subsequent to our IPO.
The holders of Series A, Series A-1, Series B, Series C, Series D, Series D-1, Series E, Series F, and Series F-1 convertible preferred stock did not have a contractual obligation to share in our losses. As such, our net losses for the years ended December 31, 2023 and 2022 were not allocated to these participating securities.
The following table presents the calculation of basic and diluted net income (loss) per share attributable to common stock:
Year ended December 31,
202420232022
Class AClass BClass AClass BClass AClass B
(in thousands, except share and per share data)
Numerator:
Net income (loss) attributable to common stockholders$(231,631)$(252,645)$(11,033)$(79,791)$(16,272)$(142,278)
Denominator:
Basic weighted-average common shares outstanding69,580,04875,892,3417,183,72351,954,3635,875,65651,375,456
Diluted weighted-average common shares outstanding69,580,04875,892,3417,183,72351,954,3635,875,65651,375,456
Basic and diluted income (loss) per share attributable to common stockholders$(3.33)$(3.33)$(1.54)$(1.54)$(2.77)$(2.77)
The following outstanding potentially dilutive shares, including stock options that have been exercised prior to vesting, were excluded from the computation of diluted net income (loss) per share attributable to common stock for the periods presented because the impact of including them would have been anti-dilutive.
Year ended December 31,
202420232022
Class AClass BClass AClass BClass AClass B
Stock options11,501,771 3,185,767 22,600,876 7,213,522 16,290,463 8,228,797 
Unvested RSUs and RSAs10,746,145 598,102 24,166,383 2,720,150 12,953,243 4,362,661 
Preferred shares— — 5,104,017 67,917,432 5,104,017 67,917,432 
22,247,916 3,783,869 51,871,276 77,851,104 34,347,723 80,508,890 
v3.25.0.1
Fair Value Measurements
12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements
5. Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value:
Level 1: Quoted market prices in active markets for identical assets or liabilities
Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data
Level 3: Unobservable inputs reflecting the reporting entity’s own assumptions or external inputs from inactive markets
We classify our cash equivalents and marketable securities within Level 1 or Level 2 because we use quoted market prices or alternative pricing sources and models utilizing market observable inputs to determine their fair value. There were no transfers between levels during the periods presented.
The following table sets forth our financial assets that are measured at fair value on a recurring basis:
December 31, 2024
Fair value
hierarchy
level
Cost or
amortized
cost
Gross
unrealized
gains
Gross
unrealized
losses
Fair
value
(in thousands)
Cash equivalents:
Money market funds Level 1$497,461 $— $— $497,461 
U.S. treasury securities
Level 1
5,979 — 5,981 
Corporate bondsLevel 21,066 — 1,068 
Marketable securities:
U.S. treasury securities Level 1817,996 1,120 (396)818,720 
U.S. agency bonds Level 2117,965 15 (62)117,918 
Corporate bonds Level 2159,424 400 (86)159,738 
Commercial paper Level 2182,264 99 (22)182,341 
Total $1,782,155 $1,638 $(566)$1,783,227 
December 31, 2023
Fair value
hierarchy
level
Cost or
amortized
cost
Gross
unrealized
gains
Gross
unrealized
losses
Fair
value
(in thousands)
Cash equivalents:
Money market funds Level 1$345,555 $— $— $345,555 
Commercial paperLevel 29,994 — (9)9,985 
Marketable securities:
U.S. treasury securities Level 1426,734 697 (188)427,243 
U.S. agency bondsLevel 277,535 13 (34)77,514 
Non-U.S. government securitiesLevel 221,723 10 (27)21,706 
Corporate bondsLevel 294,725 310 (81)94,954 
Certificates of depositLevel 22,810 — (1)2,809 
Commercial paperLevel 2187,596 148 (24)187,720 
Total $1,166,672 $1,178 $(364)$1,167,486 
Gross unrealized gains (losses) within accumulated other comprehensive income (loss) were immaterial as of December 31, 2024 and 2023. There were no impairment charges due to credit losses during the years ended December 31, 2024, 2023, and 2022.
As of December 31, 2024, the amortized cost of marketable securities with maturities less than one year was $989.2 million. The amortized cost of marketable securities with maturities between one and five years was $288.4 million.
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Balance Sheet Components
12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Balance Sheet Components
6. Balance Sheet Components
Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consisted of the following:
December 31,
2024
December 31,
2023
(in thousands)
Prepaid expenses$14,583 $11,930 
Other receivables 11,500 4,695 
Interest receivable 4,695 3,071 
Other 2,280 1,590 
Total prepaid expenses and other current assets$33,058 $21,286 
Property and Equipment, Net
Property and equipment, net consisted of the following:
December 31,
2024
December 31,
2023
(in thousands)
Computer equipment, furniture, and fixtures$15,832 $14,136 
Leasehold improvements8,017 7,597 
Total property and equipment 23,849 21,733 
Less: accumulated depreciation(11,197)(6,787)
Total property and equipment, net $12,652 $14,946 
Depreciation expense was immaterial for the years ended December 31, 2024, 2023, and 2022.
Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consisted of the following:
December 31,
2024
December 31,
2023
(in thousands)
Accrued compensation and benefits$63,441 $37,964 
Deferred revenue14,805 7,250 
Accrued expenses31,817 26,740 
Revenue share payable and other6,939 2,549 
Holdback liability from acquisitions— 6,111 
Other7,462 2,735 
Total accrued expenses and other current liabilities$124,464 $83,349 
v3.25.0.1
Operating Leases
12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Operating Leases
7. Operating Leases
We have entered into various non-cancellable operating leases agreements, primarily for the use of office space, expiring at various dates through 2029. Our lease terms include options to extend or terminate the lease when it is reasonably certain they will be exercised. We consider these options in determining the lease term on a lease-by-lease basis. We account for lease components and non-lease components as a single lease component for all leases. None of our lease agreements contain material non-lease components, material residual value guarantees, or restrictive covenants. We have elected an accounting policy to not recognize short-term leases, which have a lease term of twelve months or less, on the consolidated balance sheets.
Lease Cost
The components of lease cost were as follows:
Year ended December 31,
202420232022
(in thousands)
Operating lease cost$7,231 $13,062 $11,077 
Short-term lease cost3,324 3,857 4,291 
Variable lease cost278 749 781 
Total lease costs$10,833 $17,668 $16,149 
Lease Term and Discount Rate
The weighted-average remaining lease term and discount rate related to the operating leases were as follows:
December 31,
2024
December 31,
2023
Weighted-average remaining lease term (in years)4.004.84
Weighted-average discount rate6.48 %6.65 %
Maturity of Lease Liabilities
The present value of our operating lease liabilities as of December 31, 2024 was as follows:
(in thousands)
2025$7,509 
20267,502 
20277,414 
20286,256 
20291,484 
Total undiscounted lease payments
30,165 
Less: imputed interest
(3,463)
Present value of lease liabilities
$26,702 
Operating lease liabilities
6,137 
Operating lease liabilities, noncurrent
20,565 
Total
$26,702 
Other Information
Right-of-use assets obtained in exchange for lease liabilities were $4.7 million, $12.0 million, and $16.4 million for the years ended December 31, 2024, 2023, and 2022, respectively. Cash payments included in the measurement of our operating lease liabilities were $5.3 million, $8.9 million, and $9.6 million for the years ended December 31, 2024, 2023, and 2022, respectively.
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Acquisitions
12 Months Ended
Dec. 31, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
Acquisitions
8. Acquisitions
On July 15, 2024, we completed an acquisition to enhance our technology and workforce. The aggregate purchase consideration was $19.9 million, which consisted of $17.1 million of cash consideration and $2.8 million related to the fair value of equity consideration. Additional consideration with a fair value of $10.7 million was determined to relate to post-combination expenses, primarily stock-based compensation for future employment services.
Of the aggregate purchase consideration, $4.3 million was allocated to developed technology with a useful life of three years, $15.9 million was allocated to goodwill, and the remainder was allocated to other assets acquired and liabilities assumed.
The goodwill amount represents synergies from utilizing the acquired technology across our business and from the assembled workforce. Goodwill recorded in connection with the acquisition is not deductible for income tax purposes.
The fair values assigned to assets acquired and liabilities assumed are based on management’s estimates and assumptions and may be subject to change as additional information is received and valuation assessments are finalized. We expect to finalize the purchase accounting within the one-year measurement period.
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Goodwill and Intangible Assets
12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets
9. Goodwill and Intangible Assets
Goodwill
The change in the carrying amount of goodwill during the year ended December 31, 2024 was as follows:
(in thousands)
Balance as of December 31, 2023$26,299 
Goodwill acquired15,875 
Balance as of December 31, 2024$42,174 
There was no change in the carrying amount of goodwill during the year ended December 31, 2023.
Acquired Intangible Assets
Acquired intangible assets consisted of the following:
December 31, 2024
Gross carrying
value
Accumulated
amortization
Net carrying
value
Weighted-average remaining useful life (years)
(in thousands, except year data)
Developed technology$47,460 $22,051 $25,409 2.6
Other intangible assets600 600 — — 
Total acquired intangible assets$48,060 $22,651 $25,409 
December 31, 2023
Gross carrying
value
Accumulated
amortization
Net carrying
value
Weighted-average remaining useful life (years)
(in thousands, except year data)
Developed technology$43,160 $12,973 $30,187 3.6
Other intangible assets600 467 133 0.3
Total acquired intangible assets$43,760 $13,440 $30,320 
Amortization expense was $9.2 million and $9.0 million for the years ended December 31, 2024 and 2023, respectively. Amortization expense was immaterial for the year ended December 31, 2022.
The estimated future amortization expense related to acquired intangible assets as of December 31, 2024 was as follows:
(in thousands)
2025$9,913 
20269,913 
20275,583 
Total$25,409 
v3.25.0.1
Debt
12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Debt
10. Debt
Revolving Line of Credit
On October 8, 2021, we entered into a five-year, $750.0 million, revolving loan and standby letter of credit facility agreement (“Revolving Credit Facility”) of which $100.0 million can be issued as letters of credit. As of December 31, 2024, we have issued two letters of credit, one of which is denominated in a foreign currency, for an aggregate of $4.9 million, which reduced the letter of credit borrowings available under the Revolving Credit Facility to $95.1 million. The aggregate available balance under the Revolving Credit Facility was $745.1 million as of December 31, 2024.
On May 23, 2023, we amended the terms of the Revolving Credit Facility to replace LIBOR with Term SOFR as the interest rate benchmark. Under the amended terms of the Revolving Credit Facility, borrowings can be either ABR Loans, Term Benchmark Loans, or SONIA Loans. Outstanding ABR Loans bear interest at a rate equal to the greatest of (A) the Prime Rate, (B) the NYFRB Rate plus 0.5%, (C) the Adjusted Term SOFR Rate plus 1.0%, or (D) 1.0% (each as defined in the amended Revolving Credit Facility), in each case plus 0.25%. Outstanding Term Benchmark Loans bear interest at the Adjusted Term SOFR Rate, the Adjusted EURIBOR Rate, or the Adjusted AUD Rate (each as defined in the amended Revolving Credit Facility), as applicable, in each case, plus 1.25%. Outstanding SONIA Loans bear interest at a rate equal to the Adjusted Daily Simple SONIA (as such term is defined in the amended Revolving Credit Facility) plus 1.25%. We are required to pay a quarterly commitment fee that accrues at 0.15% per annum on the unused portion of the aggregate commitments under the credit facility.
The Revolving Credit Facility contains customary conditions on our borrowing, including events of default and covenants. Covenants include restrictions on our and certain of our subsidiaries’ ability to incur indebtedness, grant liens, make distributions to holders of our preferred and common stock, make investments, or engage in transactions with our affiliates, and require us to maintain a minimum liquidity. The obligations under the Revolving Credit Facility are secured by liens on substantially all of our assets, including intellectual property assets. We were in compliance with all covenants as of December 31, 2024.
v3.25.0.1
Commitment and Contingencies
12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
11. Commitments and Contingencies
Purchase Obligations
We enter into contracts with non-cancellable purchase obligations, primarily related to third-party cloud infrastructure agreements under which we are granted access to certain cloud services. During the year ended December 31, 2024, we signed addenda to our cloud services agreements. We are committed under these arrangements to spend at least $480.0 million through September 2026, before consideration of any credits that may be earned during the term. We have met all minimum purchase commitments under these agreements during the periods presented.
As of December 31, 2024, future payments under non-cancellable purchase obligations were as follows:
(in thousands)
2025$173,662 
2026147,128 
202716,185 
2028
Total
$336,978 
Legal Matters
From time to time, we may become involved in claims and other legal matters arising in the normal course of business. We record a loss contingency when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. We also disclose material contingencies when we believe a loss is not probable but reasonably possible. Accounting for contingencies requires us to use judgment related to both the likelihood of a loss and the estimate of the amount or range of loss. We are not aware of any pending matters, individually or in the aggregate, that are expected to have a material adverse impact on our results of operations, financial position, or cash flows as of December 31, 2024 and 2023. Legal fees and other expenses associated with such matters are expensed as incurred.
Indemnification
In the ordinary course of business, we may provide indemnifications of varying scope and terms to customers, vendors, lessors, investors, directors, officers, employees, and other parties with respect to certain matters. Indemnification may include losses from our breach of such agreements, services we provide, or third-party intellectual property infringement claims. These indemnifications may survive termination of the underlying agreement and the maximum potential amount of future indemnification payments may not be subject to a cap. We have not incurred material costs to defend lawsuits or settle claims related to these indemnifications during the years ended December 31, 2024, 2023, and 2022. We believe the fair value of these liabilities is immaterial and accordingly have not recorded liabilities for these agreements as of December 31, 2024 and 2023.
v3.25.0.1
Convertible Preferred Stock
12 Months Ended
Dec. 31, 2024
Temporary Equity Disclosure [Abstract]  
Convertible Preferred Stock
12. Convertible Preferred Stock
Immediately prior to the completion of our IPO, all of our then-outstanding shares of convertible preferred stock were automatically converted into 5,104,017 and 67,917,432 shares of our Class A and Class B common stock, respectively.
Convertible preferred stock outstanding consisted of the following as of December 31, 2023:
Shares
authorized
Shares issued and outstandingOriginal issue price per shareAggregate
liquidation
preference
Net carrying value
(in thousands, except share and per share data)
Series A7,500,0007,500,000$2.67 $35,000 $21,670 
Series A-1114,746114,7465.93 680 680 
Series B17,564,93717,564,9376.26 110,011 130,567 
Series C 10,073,58910,073,58915.77 158,900 158,048 
Series D13,833,61710,290,49321.69 223,163 223,092 
Series D-113,833,6173,543,12421.69 76,837 76,687 
Series E 12,195,63812,195,63842.47 518,002 517,577 
Series F 6,634,9056,634,90561.79 410,000 409,862 
Series F-1 5,113,7325,104,01761.79 315,400 315,309 
Total 86,864,78173,021,449$1,847,993 $1,853,492 
Significant rights and preferences of the above convertible preferred stock prior to its conversion were as follows:
Dividends
The holders of Series A, Series A-1, Series B, Series C, Series D, Series D-1, Series E, Series F, and Series F-1 convertible preferred stock (collectively referred to as “Preferred Stock”) were entitled to noncumulative dividends at an annual rate of 8% of the respective original issue price then in effect (approximately $0.21, $0.47, $0.50, $1.26, $1.73, $1.73, $3.40, $4.94, and $4.94 per share, respectively). Such dividends would have been payable only when, and if, declared by our board of directors. There were no dividends declared or paid through December 31, 2023.
Liquidation Preference
In the event of any (i) liquidation, dissolution or winding up of Reddit, (ii) the consummation of certain mergers or consolidations, (iii) certain change of control transactions, or (iv) other disposition of all or substantially all of our assets or intellectual property (each, a “liquidation event”), the holders of Series A, Series B, Series C, Series D, Series D-1, Series E, Series F, and Series F-1 were entitled to receive, prior and in preference to the holders of Series A-1, Class A common stock and Class B common stock, an amount per share equal to their full preferential amounts plus any declared and unpaid dividends. If the assets available for distribution were insufficient to pay such amounts, then the available assets would be distributed ratably among the holders of Series A, Series B, Series C, Series D, Series D-1, Series E, Series F, and Series F-1 in proportion to the full amount each holder was otherwise entitled to receive. After payment to the holders of Series A, Series B, Series C, Series D, Series D-1, Series E, Series F, and Series F-1 of their full preferential amounts, the holders of Series A-1 were entitled to receive, prior and in preference to the holders of Class A common stock and Class B common stock, an amount per share equal to its full preferential amount plus all declared and unpaid dividends. If the remaining assets available for distribution were insufficient to pay such amounts, then the remaining assets would be distributed ratably among the holders of Series A-1 in proportion to the full amount each holder was otherwise entitled to receive. After payment to the holders of Series
B, Series C, Series D, Series D-1, Series E, Series F, and Series F-1, and Series A and Series A-1 of their full preferential amounts, our remaining assets would be distributed ratably among the holders of Class A common stock and Class B common stock in proportion to the number of shares of common stock held by each holder. The preferential amounts per share of the Series A, Series A-1, Series B, Series C, Series D, Series D-1, Series E, Series F, and Series F-1 convertible preferred stock were approximately $4.67, $5.93, $6.26, $15.77, $21.69, $21.69, $42.47, $61.79, and $61.79 as of December 31, 2023.
Voting Rights
The holders of each share of Series A, Series A-1, Series B, Series C, Series D, Series D-1, Series E, and Series F were entitled to the number of votes equal to the number of shares of Class B common stock in which their respective shares were convertible. The holders of each share of Series F-1 were entitled to the number of votes equal to the number of shares of Class A common stock in which their respective shares were convertible. The holders of Series B convertible preferred stock, voting as a separate class on an as-converted basis, had the right to elect one director. The holders of Series A convertible preferred stock, voting as a separate class on an as-converted basis, had the right to elect three directors. The holders of Class A common stock and Class B common stock, voting together as a single class, had the right to elect one director. The holders of Series A preferred stock, Series B preferred stock, Series C preferred Stock, Series D preferred Stock, Class A common stock, and Class B common stock, voting together as a single class on an as-converted basis, had the right to elect two directors and any additional directors.
Conversion
The holders of each share of convertible preferred stock had the option to convert each share of Preferred Stock at any time into a number of shares of Class B common stock determined by dividing the original issue price per share by the then-current conversion price for such series, except for Series F-1, which was convertible 1:1 into shares of Class A common stock. The original issue prices per share for Series A, Series A-1, Series B, Series C, Series D, Series D-1, Series E, Series F, and Series F-1 convertible preferred stock were approximately $2.67, $5.93, $6.26, $15.77, $21.69, $21.69, $42.47, $61.79, and $61.79, respectively, and subject to adjustments for certain dilutive issuances, splits, combinations, and other recapitalizations or reorganizations. The conversion ratio was 1:1 for each series of convertible preferred stock into shares of Class B common stock, except for Series F-1, which was convertible into shares of Class A common stock. The holders of Series D convertible preferred stock had the option to convert each share of preferred stock into a number of shares of Series D-1 convertible preferred stock determined by the original issue price of Series D divided by the original issue price of Series D-1. The holders of Series D-1 convertible preferred stock had the option to convert each share of Preferred Stock into a number of shares of Series D convertible preferred stock determined by the original issue price of Series D-1 divided by the original issue price of Series D. The conversion ratio was 1:1 for Series D and Series D-1 preferred stock. In addition, each share of Series A and Series A-1 convertible preferred stock would automatically be converted into Class B common stock immediately upon the earlier of (i) the closing of an initial public offering that resulted in aggregate net proceeds to us of at least $100.0 million (“Qualified IPO”), (ii) the affirmative election of the holders of at least a majority of the then-outstanding shares of Series A, voting as a separate series, or (iii) a liquidation event in which we were valued at more than $240.0 million. Each share of Series B convertible preferred stock would automatically be converted into Class B common stock immediately upon the earlier of (i) a Qualified IPO or (ii) the affirmative election of the holders of at least a majority of the then-outstanding shares of Series B, voting as a separate series. Each share of Series C convertible preferred stock would automatically be converted into Class B common stock immediately upon the earlier of (i) a Qualified IPO or (ii) the affirmative election of the holders of at least a majority of the then-outstanding shares of Series C, voting as a separate series. Each share of Series D convertible preferred stock would automatically be converted into Class B common stock immediately upon the earlier of (i) a Qualified IPO or (ii) the affirmative election of the holders of at least a majority of the then-outstanding shares of Series D, voting as a separate series. Each share of Series D-1 convertible preferred stock would automatically be converted into Class B common stock immediately upon the earlier of (i) a Qualified IPO or (ii) the affirmative election of the holders of at least a majority of the then-outstanding shares of Series D-1, voting as a separate series. Each share of Series E convertible preferred stock would automatically be converted into Class B common stock immediately upon the earlier of (i) a Qualified IPO or (ii) the affirmative election of the holders of at least a majority of the then-outstanding shares of Series E, voting as a separate series. Each share of Series F convertible preferred stock would automatically be converted into Class B common stock immediately upon the earlier of (i) a Qualified IPO or (ii) the affirmative election of the holders of at least a majority of the then-outstanding shares of Series F, voting as a separate series. Each share of Series F-1 convertible preferred stock would automatically be converted into Class A common stock immediately upon the earlier of (i) a Qualified IPO or (ii) the affirmative election of the holders of at least a majority of the then-outstanding shares of Series F-1, voting as a separate series. Upon such automatic conversion, any declared and unpaid dividends would be paid.
Redemption
The holders of convertible preferred stock had no rights to redeem shares. The convertible preferred stock was redeemable upon the occurrence of a deemed liquidation event that was not solely within the control of Reddit. Therefore, convertible preferred stock is classified as mezzanine equity on the consolidated balance sheets. The carrying values of convertible preferred stock had not been adjusted to their liquidation preferences as these events had not occurred through December 31, 2023.
v3.25.0.1
Stockholders' Equity (Deficit)
12 Months Ended
Dec. 31, 2024
Equity [Abstract]  
Stockholders' Equity (Deficit)
13. Stockholders' Equity (Deficit)
Class A, Class B, and Class C Common Stock
We have three classes of authorized common stock — Class A, Class B, and Class C common stock. The rights of the holders of Class A and Class B common stock are identical, except with respect to voting and conversion rights. Each share of Class A common stock is entitled to one vote per share. Each share of Class B common stock is entitled to 10 votes per share. Shares of Class B common stock may be converted to Class A common stock at any time at the option of the stockholder. In addition, each share of Class B common stock will convert automatically into one share of Class A common stock (i) upon any transfer, except for certain permitted transfers set forth in the Restated Certificate, including transfers to family members, certain trusts for estate planning purposes, entities under common control with or controlled by such holder of our Class B common stock, and with respect to Advance Magazine Publishers Inc., or any Advance Entity (as defined in the Restated Certificate), or (ii) upon the first date on which the aggregate number of outstanding shares of Class B common stock ceases to represent at least 7.5% of the aggregate number of then-outstanding shares of our Class A and Class B common stock. Once converted into Class A common stock, the Class B common stock will not be reissued. In connection with our IPO, the Restated Certificate became effective, which authorized 100,000,000 shares of Class C common stock. Each holder of Class C common stock is entitled to no votes per share.
Preferred Stock
In connection with our IPO, the Restated Certificate became effective, which authorized 100,000,000 shares of undesignated preferred stock. Our board of directors has the discretion to determine the rights, preferences, privileges, and restrictions, including voting rights, dividend rights, conversion rights, redemption privileges, and liquidation preferences, of each series of preferred stock.
Common Stock Reserved for Issuance
In February 2024, our board of directors adopted the 2024 Incentive Award Plan (the “2024 Plan”), which became effective in connection with the IPO. Under the 2024 Plan, 31,747,592 shares of our Class A common stock were reserved for issuance pursuant to a variety of stock-based compensation awards, including stock options, stock appreciation rights, restricted stock awards, RSU awards, performance bonus awards, performance stock unit awards, dividend equivalents, or other stock or cash based awards. The 2024 Plan also includes shares of our Class A common stock that remained available for grant of future awards under our 2017 Equity Incentive and Grant Plan (as amended, the "2017 Plan") at the time the 2024 Plan became effective. Following the effective date of our IPO, the number of shares reserved for issuance under the 2024 Plan will increase by an annual increase on the first day of each fiscal year beginning in 2025 and ending in 2034, equal to the lesser of (A) 5% of the shares of common stock outstanding (on an as converted basis) on the last day of the immediately preceding year and (B) such smaller number of shares of stock as determined by our board of directors; provided, however, that no more than 185,661,778 shares of stock may be issued upon the exercise of incentive stock options.
We have reserved the following shares of common stock, on an as-converted basis, for future issuance:
December 31,
2024
December 31,
2023
Outstanding stock options14,687,538 29,795,909 
Outstanding RSUs11,175,380 27,627,171 
Conversion of outstanding convertible preferred stock— 73,021,449 
Remaining shares reserved for future issuances under the 2017 Plan— 7,919,000 
Remaining shares reserved for future issuances under the 2024 Plan36,711,788 — 
Shares reserved for community impact initiatives and charitable activities1,337,205 1,337,205 
Total shares of common stock reserved63,911,911 139,700,734 
The remaining shares reserved for future issuance under the 2024 Plan relate to Class A and Class B common stock.
v3.25.0.1
Stock-Based Compensation
12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation
14. Stock-Based Compensation
Equity Incentive Plans
Our board of directors adopted, and our stockholders approved, the 2024 Plan, 2017 Plan, and the 2012 Plan. Under the 2024 Plan, 2017 Plan and 2012 Plan, the board of directors may grant equity-based awards to eligible employees and directors. Subsequent to our IPO, all equity-based awards will be issued through the 2024 Plan and no further awards will be granted under the 2017 Plan and 2012 Plan.
2023 CEO/COO Equity Awards
In 2020, 2022, and 2023, we granted our Chief Executive Officer and Chief Operating Officer RSUs with a liquidity-based performance condition combined with other performance-based or market-based vesting conditions. In December 2023, certain of these awards were canceled and we concurrently granted the 2023 CEO/COO equity awards.
As part of the 2023 CEO/COO equity awards, we granted our Chief Executive Officer 2,990,511 RSUs covering 1,495,255 shares of our Class A common stock and 1,495,256 shares of our Class B common stock, and our Chief Operating Officer 1,462,028 RSUs covering shares of our Class A common stock (collectively, the “CEO/COO RSUs”). The CEO/COO RSUs have both service-based and performance-based vesting conditions. The service-based vesting condition for 50% of these awards was satisfied on the grant date. The service-based vesting condition of the remaining awards is satisfied by rendering continuous service for five years, during which time the grants will vest quarterly. The performance-based vesting condition was satisfied upon the sale of our common stock upon the consummation of a firm commitment underwritten IPO pursuant to an effective registration statement under the Securities Act or a sale event, which constitutes a change in the ownership or effective control of Reddit or in the ownership of a substantial portion of the assets of Reddit (each, a “Liquidity Event”).
Additionally, we granted our Chief Executive Officer stock options to purchase 4,485,766 shares of our Class A common stock, and 1,495,256 shares of our Class B common stock and our Chief Operating Officer a stock option to purchase 2,924,056 shares of our Class A common stock (collectively, the “CEO/COO Options”) as part of the 2023 CEO/COO equity awards. The per share exercise price for 4,452,539 of the shares underlying the CEO/COO Options is $25.29, and for the remaining 4,452,539 shares underlying the CEO/COO Options, the per share exercise price is $45.00, $60.00, and $90.00 for each one-third of the shares underlying such CEO/COO Options. The CEO/COO Options vest quarterly over five years and have a contractual term of ten years.
We accounted for the cancellation and concurrent grant of replacement awards as a modification of the terms of the canceled awards. At the time of the modification, all of the canceled awards were improbable of vesting. The 2023 CEO/COO RSUs were subject to a Liquidity Event performance-based vesting condition and were therefore improbable of vesting. The 2023 CEO/COO Options were not subject to a Liquidity Event performance-based vesting condition and were therefore probable of vesting.
RSUs and RSAs
Service-based RSUs
We grant service-based RSUs to our employees, all of which relate to Class A common stock. RSUs granted under the 2017 plan generally have both service-based and performance-based vesting conditions (“Double Trigger RSUs”). Double Trigger RSUs generally expire seven years from the date of grant. The service-based vesting condition for these awards is generally satisfied by rendering continuous service, generally for three to four years, during which time the grants will vest either quarterly or with a cliff vesting period of one year and continued vesting quarterly thereafter. The performance-based vesting condition was satisfied upon the effectiveness of our IPO. We record stock-based compensation expense in connection with these Double Trigger RSUs based on the fair market value of our common stock on the grant date using the accelerated attribution method over the requisite service period.
We also grant RSUs with a service-based vesting condition only, covering shares of our Class A common stock (“Single Trigger RSUs”). Single Trigger RSUs generally expire seven years from the date of grant. The service-based vesting condition for these awards is generally satisfied by rendering continuous service, generally for one to three years, during which time the grants will vest either with a cliff vesting period of one year and continued vesting quarterly thereafter or quarterly from the vesting commencement date. As a result, we record stock-based compensation expense related to these awards on a straight-line basis over the requisite service period.
Service-based RSAs
We grant, in certain circumstances, RSAs with a service-based vesting condition, covering shares of our Class A common stock. The service-based vesting condition for these awards is generally satisfied by rendering continuous service, generally for three years, during which time the grants will vest with a cliff vesting period of one year and continued vesting quarterly thereafter. As a result, we record stock-based compensation expense related to these awards on a straight-line basis over the requisite service period.
The following table summarizes the RSU and RSA activity for the year ended December 31, 2024:
Service-
based
RSUs
RSAsMarket and Performance-
based
RSUs
Total RSUs and RSAsWeighted-
average grant
date fair
value
Unvested as of December 31, 202325,406,057 87,030 1,393,446 26,886,533 $29.17 
Granted5,170,456 153,648 86,706 5,410,810 $56.96 
Vested
(17,753,004)(71,811)(1,351,867)(19,176,682)$31.80 
Canceled/Forfeited
(1,745,625)— (30,789)(1,776,414)$31.15 
Unvested as of December 31, 202411,077,884 168,867 97,496 11,344,247 $37.67 
As of December 31, 2024, we had RSUs and RSAs outstanding for 11,344,247 common shares, of which 10,746,145 relate to Class A common stock and 598,102 relate to Class B common stock. The weighted-average grant date fair value of RSUs and RSAs granted during the years ended December 31, 2024, 2023, and 2022 was $56.96, $26.71, and $37.88, respectively. The total fair value of RSUs and RSAs vested during the years ended December 31, 2024, 2023, and 2022 was $766.8 million, $27.9 million, and $33.4 million, respectively. Total unrecognized stock-based compensation expense related to RSUs and RSAs was $292.2 million as of December 31, 2024 and is expected to be recognized over a weighted-average period of 1.41 years.
Stock Options
Stock option grants generally expire ten years from the date of the grant. Certain stock option grants allow for the exercise of unvested options to acquire shares. Upon termination of service, we have the right to repurchase, at the original exercise price, any unvested (but issued) common stock. The grant date fair value of stock options is estimated using a Black-Scholes option-pricing model. Calculating the fair value of stock options using the Black-Scholes model requires certain highly subjective inputs and assumptions including the fair value of the underlying common stock, the expected term of the stock option, and the expected volatility of the price of the underlying common stock. Forfeitures are accounted for as they occur. Stock options vest based on terms in the stock option agreement and generally vest over five years quarterly or four years with 25% of the award vesting one year from the vesting commencement date then ratably over the following three years. For
awards that vest based only on continuous service, stock-based compensation expense is recognized on a straight-line basis over the requisite service period.
The following table summarizes the stock option activity during the year ended December 31, 2024:
Outstanding
stock
options
Weighted-
average
exercise
price
Weighted-
average
remaining
contractual
life
(years)
Aggregate
intrinsic
value
(in thousands, except share, per share, and year data)
Balance as of December 31, 202329,795,909 $17.83 6.00$500,472 
Exercised
(15,018,424)5.92 
Canceled/Forfeited
(89,947)8.89 
Balance as of December 31, 202414,687,538 $30.07 6.87$1,958,924 
Vested as of December 31, 20247,495,598 $15.88 4.88$1,106,061 
Vested and expected to vest as of December 31, 202414,687,538 $30.07 6.87$1,958,924 
As of December 31, 2024 we had outstanding stock options for 14,687,538 common shares, of which 11,501,771 relate to Class A common stock and 3,185,767 relate to Class B common stock. Total unrecognized stock-based compensation expense related to stock options was $111.9 million as of December 31, 2024 and is expected to be recognized over a weighted-average period of 3.95 years.
Aggregate intrinsic value represents the difference between the exercise price of the options and the estimated fair value of our common stock. The intrinsic value of options exercised during the years ended December 31, 2024, 2023, and 2022 was $887.3 million, $72.5 million, and $43.6 million, respectively. The weighted-average grant date fair value per share of options granted during the years ended December 31, 2023 and 2022 was $15.67 and $27.52, respectively. The total grant date fair value of options vested during the years ended December 31, 2024, 2023, and 2022 was $34.8 million, $14.0 million, and $21.9 million, respectively.
Determination of Fair Value
We estimate the fair value of stock options using the Black-Scholes option-pricing model, which is dependent upon several variables, such as the fair value of our common stock, expected term of the option, expected volatility of the stock price, risk-free interest rate, and expected dividend rate.
The assumptions used in the Black-Scholes option pricing model were determined as follows:
Fair Value of Common Stock—Prior to the completion of an IPO, the board of directors exercised reasonable judgment and considered numerous and subjective factors to determine the best estimate of the fair value of our common stock, including but not limited to the prices of recent issuances of our convertible preferred stock, third-party valuations of our common stock, the price paid by us to repurchase outstanding shares of common stock, the prices paid for our common stock in secondary market transactions, our performance and market position relative to our competitors or similar publicly traded companies, the likelihood and timing of achieving a liquidity event, the lack of marketability of our common stock, and U.S. and global capital market conditions.
Expected Term—The expected term of options represents the period that our stock-based awards are expected to be outstanding and is calculated using the simplified method. The simplified method deems the term to be the average of the time-to-vesting and the contractual life of the options.
Volatility—We determine the price volatility factor based on the historical and implied volatilities of our peer group as we do not have a sufficient trading history for our common stock. When considering which companies to include in our comparable industry peer companies, we focused on publicly-traded companies with businesses similar to ours.
Risk Free Interest Rates—These rates are based on the implied yield currently available on U.S. Treasury notes with terms approximately equal to the expected life of the option.
Expected Dividend Yield—We have not and do not expect to pay cash dividends on our common stock.
The following weighted-average assumptions were used to determine the fair value of employee stock options granted during the year ended December 31, 2023:
Expected term (in years)6.31
Expected volatility60.66 %
Risk-free interest rate3.83 %
Expected dividend yield0
Secondary Sales
During the year ended December 31, 2023, certain former employees sold an aggregate of 183,677 shares of Class A common stock and 3,960,560 shares of Class B common stock to existing shareholders at purchase prices ranging from $25.00 to $31.50 per share, for an aggregate purchase price of $114.1 million. We estimated the fair value of the common stock purchased in the secondary sales based on several factors, including taking into account the amounts paid by third parties for our common stock. As the purchase price for the secondary sales paid by our existing shareholder was in excess of the fair value of such shares at the time of the transactions, we recognized immaterial stock-based compensation expense in connection with these transactions during the year ended December 31, 2023.
Stock-Based Compensation Expense
The following table summarizes the components of stock-based compensation expense recognized in the consolidated statements of operations for all periods presented:
Year ended December 31,
202420232022
(in thousands)
Cost of revenue$620 $101 $133 
Research and development441,629 23,825 35,641 
Sales and marketing80,436 5,555 7,576 
General and administrative278,961 18,117 11,960 
Stock-based compensation expense
$801,646 $47,598 $55,310 
v3.25.0.1
Employee Benefit Plans
12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
Employee Benefit Plans
15. Employee Benefit Plans
We have a defined contribution 401(k) plan (the “401(k) Plan”) for our United States-based employees. The 401(k) Plan is for all full-time employees who meet certain eligibility requirements. Eligible employees may contribute up to 100% of their annual compensation, but are limited to the maximum annual dollar amount allowable under the Internal Revenue Code of 1986, as amended (the “Code”). We match 100% of each participant’s contribution up to $3,000 and 25% of each participant’s contribution thereafter, subject to certain limitations and the IRS annual contribution limits. During the years ended December 31, 2024, 2023, and 2022, we recognized expense related to matching contributions of $11.5 million, $10.1 million, and $8.7 million, respectively.
v3.25.0.1
Income Taxes
12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes
16. Income Taxes
For the years ended December 31, 2024, 2023, and 2022, the geographical breakdown of our income (loss) before income taxes is as follows:
Year ended December 31,
202420232022
(in thousands)
Domestic income (loss)$(493,371)$(92,627)$(162,330)
Foreign income (loss)8,164 5,604 4,402 
Income (loss) before income taxes$(485,207)$(87,023)$(157,928)
For the years ended December 31, 2024, 2023, and 2022, income tax expense (benefit) consisted of the following:
Year ended December 31,
202420232022
(in thousands)
Current income tax expense (benefit):
Federal$(141)$1,290 $859 
State474 1,133 610 
Foreign851 1,468 1,231 
Total current income tax expense (benefit)1,184 3,891 2,700 
Deferred income tax expense (benefit):
Federal(237)— (1,767)
Foreign(1,878)(90)(311)
Total deferred income tax expense (benefit)(2,115)(90)(2,078)
Total income tax expense (benefit)$(931)$3,801 $622 
Our effective tax rate, as a percentage of pre-tax income (loss), differs from the statutory federal rate as follows:
Year ended December 31,
202420232022
Statutory federal income tax rate21.0 %21.0 %21.0 %
State income taxes, net of federal benefit5.3 1.2 2.3 
Non-deductible compensation
(14.0)— — 
Stock-based compensation44.4 3.9 0.6 
Research and development credits14.6 13.5 14.1 
Change in valuation allowance(71.0)(41.1)(37.4)
Other(0.2)(2.9)(1.0)
Effective tax rate0.1 %(4.4)%(0.4)%
Deferred income taxes reflect the net tax effect of temporary differences between amounts recorded for financial reporting purposes and the amounts used for tax purposes. The major components of deferred tax assets and liabilities were as follows:
December 31,
2024
December 31,
2023
(in thousands)
Deferred tax assets:
Net operating loss carryforwards$149,735 $56,938 
Stock-based compensation28,586 21,364 
Lease liability6,206 5,819 
Capitalized research and development costs268,232 98,267 
Research and development credits124,116 53,946 
Other13,351 4,216 
Gross deferred tax assets590,226 240,550 
Valuation allowance(572,894)(228,001)
Total deferred tax assets, net of valuation allowance17,332 12,549 
Deferred tax liabilities:
Right-of-use asset(5,436)(5,426)
Acquired intangibles(9,727)(6,895)
Total deferred tax liabilities(15,163)(12,321)
Net deferred tax assets (liabilities)$2,169 $228 
As of December 31, 2024, we had $590.4 million and $399.9 million, respectively, of gross federal and state net operating loss carryforwards available to reduce future taxable income. The federal net operating loss carryforwards are able to be carried forward indefinitely but are limited to 80% of taxable income. The state carryforwards will begin to expire in 2025.
As of December 31, 2024, we had federal research and development credit carryforwards of $123.9 million that will begin to expire in 2039 and state research and development credit carryforwards of $49.3 million that do not expire.
Utilization of the net operating loss and tax credit carryforwards may be subject to a substantial annual limitation due to the ownership change limitations provided by Section 382 of the Code and similar state tax regulations. Under Section 382 of the Code, substantial changes in our ownership and in the ownership of acquired companies may limit the amount of net operating loss and tax credit carryforwards that are available to offset taxable income. The annual limitation may result in the expiration of net operating losses and tax credits before utilization. Accordingly, our ability to utilize these carryforwards may be limited as a result of such ownership change.
We assessed the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use our existing federal and state deferred tax assets. Based on the weight of the available evidence, including our history of losses, we provided a full valuation allowance against our federal and state deferred tax assets as of December 31, 2024. The amount of the deferred tax asset considered realizable could be adjusted in future periods if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence such as our projections for growth.
As of December 31, 2024, we had an immaterial amount of unremitted earnings related to foreign subsidiaries. We intend to reinvest these foreign earnings indefinitely and do not expect to incur any significant taxes related to such amounts.
Uncertain Tax Positions
The following table summarizes the activity related to our gross unrecognized tax benefits during the years ended December 31, 2024, 2023, and 2022:
Year ended December 31,
202420232022
(in thousands)
Beginning balance of unrecognized tax benefits$19,236 $16,428 $8,982 
Increases/(decreases) related to prior year tax positions 1,444 (1,750)1,925 
Increases/(decreases) related to current year tax positions 23,181 4,558 5,521 
Ending balance of unrecognized tax benefits$43,861 $19,236 $16,428 
Substantially all of the unrecognized tax benefits were recorded as reductions in our gross deferred tax assets, offset by a corresponding reduction in our valuation allowance. The unrecognized tax benefits, if recognized, would not materially affect the effective tax rate due to the full valuation allowance recorded against our federal and state deferred tax assets.
Our policy is to recognize interest and penalties associated with unrecognized tax benefits as income tax expense. During the year ended December 31, 2024, we had no interest expense or penalties related to uncertain tax positions. As of December 31, 2024, we had no accrued balances of interest and penalties related to uncertain tax positions.
Due to our net operating loss carryforwards, we are subject to examination by taxing authorities in the United States for all tax years. In our foreign jurisdictions, we are subject to examination for tax years ending on or after December 31, 2019. As of December 31, 2024, we had not identified any gross unrecognized tax benefits where it was reasonably possible we would recognize a significant increase or decrease within the next 12 months.
v3.25.0.1
Related Parties and Related-Party Transactions
12 Months Ended
Dec. 31, 2024
Related Party Transactions [Abstract]  
Related Parties and Related-Party Transactions
17. Related Parties and Related-Party Transactions
Advance Magazine Publishers Inc.
As of December 31, 2024, Advance Magazine Publishers Inc. (“Advance”) held approximately 23% of our outstanding shares of Class A and Class B common stock and is a related party to Reddit as Advance holds more than 10% of the voting power of our outstanding Class A and Class B common stock. Moreover, pursuant to the terms of the Restated Certificate and that certain Governance Agreement, dated as of March 19, 2024, by and among us, Steve Huffman, our Chief Executive Officer
and a member of our board of directors, and Advance, Advance has the right to designate two directors for inclusion in the slate of nominees for election as directors at an annual or special meeting of stockholders, to designate one nonvoting observer to the board of directors, and to have one of its designees sit on each committee of the board of directors (other than the audit committee), subject to certain limitations set forth in the Restated Certificate. Additionally, the affirmative vote or written consent of Advance will be required for us to take certain corporate actions. These rights will continue until the first to occur of the following events: (i) a change of control of Advance or Reddit; (ii) Advance and its permitted transferees cease to, in the aggregate, beneficially own at least 5% of the aggregate of the then-outstanding shares of our Class A and Class B common stock; and (iii) (a) Advance and its permitted transferees cease to, in the aggregate, beneficially own at least 50% of the number of outstanding shares of our equity securities held by Advance upon the closing of our IPO, and (b) the then-outstanding shares of our Class B common stock, in the aggregate, represents less than 7.5% of the aggregate of the then-outstanding shares of our Class A and Class B common stock.
We currently sublease office space in New York and Chicago from Advance. Total lease costs and other related expenses for our subleases were immaterial for the years ended December 31, 2024, 2023, and 2022.
v3.25.0.1
Segment and Geographic Information
12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment and Geographic Information
18. Segment and Geographic Information
Segment Information
We have one reportable segment as our chief operating decision maker reviews consolidated profitability measures in managing the business. Specifically, our chief operating decision maker uses consolidated net income (loss) as the measure of segment profit or loss for evaluating performance and allocating resources through comparison of actual amounts against budgeted and prior period amounts.
The following table presents the calculation of segment net income (loss):
Year ended December 31,
202420232022
(in thousands)
Revenue$1,300,205 $804,029 $666,701 
Adjusted cost of revenue(1)
122,975 110,758 103,952 
Adjusted gross profit1,177,230 693,271 562,749 
Adjusted operating expenses(2)
879,223 762,546 671,143 
Stock-based compensation and related taxes842,932 49,086 55,768 
Depreciation and amortization15,643 13,702 8,000 
Interest (income) expense, net(78,121)(53,281)(15,681)
Income tax expense (benefit)(931)3,801 622 
Other segment expenses(3)
2,760 8,241 1,447 
Segment net income (loss)$(484,276)$(90,824)$(158,550)
Consolidated net income (loss)$(484,276)$(90,824)$(158,550)
________________
(1)Adjusted cost of revenue is cost of revenue adjusted for stock-based compensation and related taxes and depreciation and amortization as follows:
Year ended December 31,
202420232022
(in thousands)
Cost of revenue$123,595 $111,011 $104,799 
Less:
Stock-based compensation and related taxes620 101 133 
Depreciation and amortization— 152 714 
Adjusted cost of revenue$122,975 $110,758 $103,952 
(2)Adjusted operating expenses is operating expenses (comprised of research and development, sales and marketing, and general and administrative expenses) adjusted for stock-based compensation and related taxes, depreciation and amortization, and restructuring costs as follows:
Year ended December 31,
202420232022
(in thousands)
Operating expenses$1,737,178 $833,179 $734,064 
Less:
Stock-based compensation and related taxes842,312 48,985 55,635 
Depreciation and amortization15,643 13,550 7,286 
Restructuring costs— 8,098 — 
Adjusted operating expenses$879,223 $762,546 $671,143 
(3)Other segment expenses primarily includes restructuring costs, realized gains and losses on sales of marketable securities, and foreign currency transaction gains and losses.

Geographic Information
As of December 31, 2024 and 2023, substantially all of our long-lived assets were located within the United States.
v3.25.0.1
Subsequent Events
12 Months Ended
Dec. 31, 2024
Subsequent Events [Abstract]  
Subsequent Events
19. Subsequent Events
[TBD]
v3.25.0.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Pay vs Performance Disclosure      
Net income (loss) $ (484,276) $ (90,824) $ (158,550)
v3.25.0.1
Insider Trading Arrangements
3 Months Ended
Dec. 31, 2024
shares
Trading Arrangements, by Individual  
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
Andrew Vollero [Member]  
Trading Arrangements, by Individual  
Name Andrew Vollero
Title Chief Financial Officer
Rule 10b5-1 Arrangement Adopted true
Adoption Date November 25, 2024
Expiration Date May 15, 2025
Arrangement Duration 171 days
Benjamin Lee [Member]  
Trading Arrangements, by Individual  
Name Benjamin Lee
Title Chief Legal Officer
Rule 10b5-1 Arrangement Adopted true
Adoption Date December 3, 2024
Expiration Date December 15, 2025
Arrangement Duration 377 days
Michelle Reynolds [Member]  
Trading Arrangements, by Individual  
Name Michelle Reynolds
Title Chief Accounting Officer
Rule 10b5-1 Arrangement Adopted true
Adoption Date December 3, 2024
Expiration Date May 30, 2025
Arrangement Duration 178 days
Common Class A Trading Arrangement [Member] | Andrew Vollero [Member]  
Trading Arrangements, by Individual  
Aggregate Available 200,000
Common Class A Trading Arrangement [Member] | Benjamin Lee [Member]  
Trading Arrangements, by Individual  
Aggregate Available 75,000
Common Class A Trading Arrangement [Member] | Michelle Reynolds [Member]  
Trading Arrangements, by Individual  
Aggregate Available 5,999
Restricted Stock Unit Common Class A Trading Arrangement [Member] | Andrew Vollero [Member]  
Trading Arrangements, by Individual  
Aggregate Available 267,933
Restricted Stock Unit Common Class A Trading Arrangement [Member] | Benjamin Lee [Member]  
Trading Arrangements, by Individual  
Aggregate Available 126,660
Restricted Stock Unit Common Class A Trading Arrangement [Member] | Michelle Reynolds [Member]  
Trading Arrangements, by Individual  
Aggregate Available 20,979
v3.25.0.1
Insider Trading Policies and Procedures
12 Months Ended
Dec. 31, 2024
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.0.1
Cybersecurity Risk Management and Strategy Disclosure
12 Months Ended
Dec. 31, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
The nature of Reddit’s business makes the company susceptible to cybersecurity attacks. To address this, we maintain a cybersecurity risk management program with policies and controls designed to protect our platform and data from cyber threats. Our cybersecurity risk management program is intended to protect the confidentiality, integrity, and availability of our critical systems and information. Our cybersecurity risk management program includes a cybersecurity incident response plan. We design and assess our cybersecurity risk management program based on applicable laws and regulations and remain informed by industry standards and industry-recognized practices.
Our cybersecurity risk management program is integrated into our overall enterprise risk management program, and shares common methodologies, reporting channels, and governance processes that apply across the enterprise risk management program.
Our cybersecurity risk management program includes:
risk assessments designed to help identify material cybersecurity risks to our critical systems, information, products, services, and our broader enterprise IT environment;
a dedicated security team principally responsible for managing (1) our cybersecurity risk assessment processes, (2) our security controls, and (3) our response to cybersecurity incidents;
the use of external service providers, such as third-party penetration testing firms, bug bounty programs, or auditors, to assess, test, or otherwise assist with aspects of our security controls;
cybersecurity awareness training of our employees, incident response personnel, and senior management, including onboarding sessions and annual refresher training to address evolving threats;
a cybersecurity incident response plan that follows recognized frameworks (e.g., National Institute of Standards and Technology Cybersecurity Framework), outlines procedures for investigating and resolving incidents, and is supported by automated tools for threat triage and resolution; and
a third-party risk management process for service providers, suppliers, and vendors incorporating evaluations like SOC 2 reports, annual reviews, and security questionnaires to ensure risks are understood and addressed.
We have not identified risks from known cybersecurity incidents, including as a result of any prior cybersecurity incidents, that have materially affected us, including our business, results of operations, and financial condition. We face risks from cybersecurity threats that, if realized, are reasonably likely to materially affect us, including our business, operations, results of operations, or financial condition. For additional information about these risks, see Part I, Item 1A, “Risk Factors” in this Annual Report on Form 10-K.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block]
Our cybersecurity risk management program is integrated into our overall enterprise risk management program, and shares common methodologies, reporting channels, and governance processes that apply across the enterprise risk management program.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
Our board of directors considers cybersecurity risk as part of its risk oversight function and has delegated to the Audit Committee (the “Committee”) oversight of cybersecurity and other information technology risks. The Committee oversees management’s implementation of our cybersecurity risk management program.
The Committee receives regular reports from management on our cybersecurity risks. In addition, management updates the Committee, as necessary, regarding any material cybersecurity incidents, as well as any incidents with lesser impact potential.
The Committee reports to the full board of directors regarding its activities, including those related to cybersecurity. The full board of directors also receives briefings from management on our cyber risk management program. Board members receive presentations on cybersecurity topics from our Chief Information Security Officer (“CISO”), internal security staff, or external experts as part of the board of directors’ continuing education on topics that impact public companies.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] Our board of directors considers cybersecurity risk as part of its risk oversight function and has delegated to the Audit Committee (the “Committee”) oversight of cybersecurity and other information technology risks. The Committee oversees management’s implementation of our cybersecurity risk management program.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block]
The Committee receives regular reports from management on our cybersecurity risks. In addition, management updates the Committee, as necessary, regarding any material cybersecurity incidents, as well as any incidents with lesser impact potential.
The Committee reports to the full board of directors regarding its activities, including those related to cybersecurity. The full board of directors also receives briefings from management on our cyber risk management program. Board members receive presentations on cybersecurity topics from our Chief Information Security Officer (“CISO”), internal security staff, or external experts as part of the board of directors’ continuing education on topics that impact public companies.
Cybersecurity Risk Role of Management [Text Block] which is responsible for assessing and managing our material risks from cybersecurity threats. Our SPACE team has primary responsibility for our overall cybersecurity risk management program and supervises both our internal cybersecurity personnel and our retained external cybersecurity consultants. Our SPACE team has a strong foundation of expertise, developed over years of experience in cybersecurity and engineering across diverse industries, including technology.
Our SPACE team supervises efforts to prevent, detect, mitigate, remediate, and appropriately report cybersecurity risks and incidents through various means, which may include briefings from internal security personnel; threat intelligence and other information obtained from governmental, public, or private sources, including external consultants engaged by us; and alerts and reports produced by security tools deployed in the IT environment.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block]
The Committee receives regular reports from management on our cybersecurity risks. In addition, management updates the Committee, as necessary, regarding any material cybersecurity incidents, as well as any incidents with lesser impact potential.
The Committee reports to the full board of directors regarding its activities, including those related to cybersecurity. The full board of directors also receives briefings from management on our cyber risk management program. Board members receive presentations on cybersecurity topics from our Chief Information Security Officer (“CISO”), internal security staff, or external experts as part of the board of directors’ continuing education on topics that impact public companies.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Our CISO, Fredrick Lee, has over twenty years of experience in information security, engineering, and other technology-related roles. Mr. Lee currently oversees Reddit’s Security, Privacy, And Compliance Engineering (“SPACE”) team, which is responsible for assessing and managing our material risks from cybersecurity threats. Our SPACE team has primary responsibility for our overall cybersecurity risk management program and supervises both our internal cybersecurity personnel and our retained external cybersecurity consultants. Our SPACE team has a strong foundation of expertise, developed over years of experience in cybersecurity and engineering across diverse industries, including technology.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block]
The Committee receives regular reports from management on our cybersecurity risks. In addition, management updates the Committee, as necessary, regarding any material cybersecurity incidents, as well as any incidents with lesser impact potential.
The Committee reports to the full board of directors regarding its activities, including those related to cybersecurity. The full board of directors also receives briefings from management on our cyber risk management program. Board members receive presentations on cybersecurity topics from our Chief Information Security Officer (“CISO”), internal security staff, or external experts as part of the board of directors’ continuing education on topics that impact public companies.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.0.1
Basis of Presentation and Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation
Our consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). Our consolidated financial statements include the accounts of Reddit, Inc. and our wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.
Basis of Presentation
Our consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). Our consolidated financial statements include the accounts of Reddit, Inc. and our wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.
Use of Estimates
The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Management’s estimates are based on historical information available as of the date of the consolidated financial statements and various other assumptions that we believe are reasonable under the circumstances. Actual results could differ materially from those estimates.
Significant estimates relate primarily to determining the fair value of stock-based awards, the fair value of assets and liabilities assumed in business combinations, and the incremental borrowing rate used to determine operating lease right-of-use assets and lease liabilities. On an ongoing basis, management evaluates our estimates compared to historical experience and trends, which form the basis for making judgments about the carrying value of assets and liabilities.
Revenue Recognition, Advertising Revenue, Other Revenue and Contract Assets
We generate a majority of our revenue through the sale of advertising on our mobile applications and website. Other revenue consists of revenue from content licensing, Reddit Premium subscriptions, and products within our user economy.
We determine revenue recognition by identifying the contract or contracts with a customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations in the contract, and recognizing revenue when, or as, we satisfy a performance obligation.
For customer contracts that include multiple performance obligations, we identify each distinct performance obligation and determine the transaction price, which may include an estimation of variable consideration, subject to constraint. The transaction price is allocated to each performance obligation using the stand-alone selling price, which is generally based on the observable price of each good or service.
Payments for revenue arrangements are due based on the contractually stated payment terms, usually within 30 to 60 days. Sales and other similar taxes are excluded from revenue.
We recognize advertising revenue only after transferring control of promised goods or services to customers, which occurs when a user clicks on an ad contracted on a cost per click (“CPC”) basis, views an ad contracted on a cost per thousand impressions (“CPM”) basis, views a video ad contracted on a cost per view (“CPV”) basis, or on a fixed fee basis, based upon ad delivery over the service period, which is typically less than 30 days in duration. Generally, we recognize advertising revenue on a gross basis since we control the advertising units before being transferred to our users. In arrangements where another party is involved in providing specified services to a customer, we evaluate whether we are the principal or agent. In this evaluation, we consider if we obtain control of the specified goods or services before they are transferred to the customer. For advertising revenue arrangements where we are not the principal, we recognize revenue on a net basis. For the periods presented, revenue for arrangements where we are the agent was not material.
The transaction price in advertising arrangements is generally calculated as the number of advertising units delivered multiplied by the contractually agreed upon CPC, CPM, or CPV, or on a fixed fee basis and revenue is recognized based on the number of clicks, impressions, or views, or ratable over the service period, respectively.
In our content licensing arrangements, we provide customers with the right to access content from our platform over the contractual period. The transaction price in content licensing arrangements is generally a fixed fee or usage-based fee. We recognize content licensing revenue as our content partners consume and benefit from their use of the licensed content, which is generally ratably over the license period. We recognize Reddit Premium subscription revenue ratably over the subscription period, which is generally less than one year. Products within our user economy include Reddit Gold and Collectible Avatars.
When revenue recognition exceeds the amounts billable on a contract, the difference is recorded as a contract asset. The current portion of contract assets included within accounts receivable, net, and the noncurrent portion of contract assets included within other noncurrent assets on the consolidated balance sheets were not material as of December 31, 2024 and 2023.
Cost of Revenue
Cost of revenue consists primarily of payments to third parties for the cost of hosting and supporting our mobile applications and website. In addition, cost of revenue includes expenses directly associated with the delivery of our advertising and other services, including advertising measurement services and credit card and other transaction processing fees. Cost of revenue also consists of employee-related costs, including salaries, benefits, and stock-based compensation.
Research and Development Expenses
Research and development expenses consist primarily of employee-related costs including salaries, benefits, and stock-based compensation for engineers and other employees engaged in the research, design, and development of new and existing products. Research and development expenses also include professional services and hosting costs associated with internal research and development activities, as well as allocated facilities and other supporting overhead costs.
Sales and Marketing Expenses and General and Administrative Expenses
Sales and marketing expenses consist primarily of employee-related costs including salaries, benefits, and stock-based compensation for employees engaged in sales, sales support, business and brand development, marketing, and customer service functions. Sales commissions are expensed as incurred in sales and marketing expenses as the expected period of benefit is one year or less. Sales and marketing expenses also include costs incurred for advertising, market research, branding, professional services, marketing, and promotional expenditures, as well as allocated facilities and other supporting overhead costs.
General and administrative expenses consist primarily of employee-related costs including salaries, benefits, and stock-based compensation for certain executives as well as employees engaged in finance, legal, human resources, information technology, communications, and other administrative teams. General and administrative expenses also include costs incurred for professional services, as well as allocated facilities and other supporting overhead costs.
Advertising Costs
Advertising costs are expensed as incurred and were $9.2 million, $8.2 million, and $34.4 million for the years ended December 31, 2024, 2023, and 2022 respectively.
Stock-Based Compensation
We measure and recognize compensation expense for stock-based awards, including restricted stock units (“RSUs”), restricted stock awards (“RSAs”), and stock options granted to employees and non-employees based on the grant date fair value of the awards granted. Prior to the IPO, for secondary sale transactions with existing investors, we recognized stock-based compensation expense representing the excess of the purchase price over the fair value of our common stock on the date of the transaction.
Service-based RSUs
We grant service-based RSUs to our employees, all of which relate to Class A common stock. RSUs granted under the 2017 plan generally have both service-based and performance-based vesting conditions (“Double Trigger RSUs”). Double Trigger RSUs generally expire seven years from the date of grant. The service-based vesting condition for these awards is generally satisfied by rendering continuous service, generally for three to four years, during which time the grants will vest either quarterly or with a cliff vesting period of one year and continued vesting quarterly thereafter. The performance-based vesting condition was satisfied upon the effectiveness of our IPO. We record stock-based compensation expense in connection with these Double Trigger RSUs based on the fair market value of our common stock on the grant date using the accelerated attribution method over the requisite service period.
We also grant RSUs with a service-based vesting condition only, covering shares of our Class A common stock (“Single Trigger RSUs”). Single Trigger RSUs generally expire seven years from the date of grant. The service-based vesting condition for these awards is generally satisfied by rendering continuous service, generally for one to three years, during which time the grants will vest either with a cliff vesting period of one year and continued vesting quarterly thereafter or quarterly from the vesting commencement date. As a result, we record stock-based compensation expense related to these awards on a straight-line basis over the requisite service period.
Service-based RSAs
We grant, in certain circumstances, RSAs with a service-based vesting condition, covering shares of our Class A common stock. The service-based vesting condition for these awards is generally satisfied by rendering continuous service, generally for three years, during which time the grants will vest with a cliff vesting period of one year and continued vesting quarterly thereafter. As a result, we record stock-based compensation expense related to these awards on a straight-line basis over the requisite service period.
Stock option grants generally expire ten years from the date of the grant. Certain stock option grants allow for the exercise of unvested options to acquire shares. Upon termination of service, we have the right to repurchase, at the original exercise price, any unvested (but issued) common stock. The grant date fair value of stock options is estimated using a Black-Scholes option-pricing model. Calculating the fair value of stock options using the Black-Scholes model requires certain highly subjective inputs and assumptions including the fair value of the underlying common stock, the expected term of the stock option, and the expected volatility of the price of the underlying common stock. Forfeitures are accounted for as they occur. Stock options vest based on terms in the stock option agreement and generally vest over five years quarterly or four years with 25% of the award vesting one year from the vesting commencement date then ratably over the following three years. For
awards that vest based only on continuous service, stock-based compensation expense is recognized on a straight-line basis over the requisite service period.
Determination of Fair Value
We estimate the fair value of stock options using the Black-Scholes option-pricing model, which is dependent upon several variables, such as the fair value of our common stock, expected term of the option, expected volatility of the stock price, risk-free interest rate, and expected dividend rate.
The assumptions used in the Black-Scholes option pricing model were determined as follows:
Fair Value of Common Stock—Prior to the completion of an IPO, the board of directors exercised reasonable judgment and considered numerous and subjective factors to determine the best estimate of the fair value of our common stock, including but not limited to the prices of recent issuances of our convertible preferred stock, third-party valuations of our common stock, the price paid by us to repurchase outstanding shares of common stock, the prices paid for our common stock in secondary market transactions, our performance and market position relative to our competitors or similar publicly traded companies, the likelihood and timing of achieving a liquidity event, the lack of marketability of our common stock, and U.S. and global capital market conditions.
Expected Term—The expected term of options represents the period that our stock-based awards are expected to be outstanding and is calculated using the simplified method. The simplified method deems the term to be the average of the time-to-vesting and the contractual life of the options.
Volatility—We determine the price volatility factor based on the historical and implied volatilities of our peer group as we do not have a sufficient trading history for our common stock. When considering which companies to include in our comparable industry peer companies, we focused on publicly-traded companies with businesses similar to ours.
Risk Free Interest Rates—These rates are based on the implied yield currently available on U.S. Treasury notes with terms approximately equal to the expected life of the option.
Expected Dividend Yield—We have not and do not expect to pay cash dividends on our common stock.
Income Taxes
We account for income taxes using an asset and liability approach. Under this method, the tax provision includes taxes currently due plus the net change in deferred tax assets and liabilities. Deferred tax assets and liabilities arise from temporary differences between the tax basis of an asset or liability and its reported amount in the consolidated financial statements, as well as from net operating loss and tax credit carryforwards. Deferred tax amounts are determined by using the tax rates expected to be in effect when the taxes will be paid or refund received, as provided for under currently enacted tax law. In assessing the need for a valuation allowance, we consider both positive and negative evidence related to the likelihood of realization of the deferred tax assets. If, based on the weight of available evidence, it is more likely than not that the deferred tax assets will not be realized, a valuation allowance is recorded. Should there be a change in the ability to recover deferred tax assets, the income tax provision would increase or decrease in the period in which the assessment is changed.
We recognize the effect of income tax positions only if those positions are more likely than not to be sustained. Recognized income tax positions are measured at the largest amount that has a greater than 50% likelihood of being realized. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Any interest and penalties related to unrecognized tax benefits are recognized as income tax expense in the consolidated statements of operations.
Our policy is to recognize interest and penalties associated with unrecognized tax benefits as income tax expense.
Functional Currency
Generally, the U.S. dollar is the functional currency for our subsidiaries, and therefore, foreign currency denominated monetary assets and liabilities are remeasured into U.S. dollars at exchange rates at the balance sheet date and foreign currency denominated non-monetary assets and liabilities are remeasured into U.S. dollars at historical exchange rates. Gains or losses from foreign currency remeasurement and settlements are included in other income (expense), net in the consolidated statements of operations. Net foreign exchange gains and losses were not material for the years ended December 31, 2024, 2023, and 2022.
On January 1, 2024, we changed the functional currency of our U.K. subsidiary, Reddit UK Limited, from the U.S. dollar to the British pound. The change in functional currency is due primarily to the increased exposure to the British pound as our future operating cash flows for our U.K. subsidiary are expected to be in British pounds. We translate the financial statements of the U.K. subsidiary to U.S. dollars at exchange rates at the balance sheet date for assets and liabilities and at monthly average exchange rates for revenues and expenses. Translation gains and losses are recorded in accumulated other comprehensive income (loss) as a component of stockholders' equity (deficit). The change in the functional currency of Reddit UK Limited was accounted for prospectively from January 1, 2024 and did not have a material impact on our consolidated financial statements.
Cash, Cash Equivalents, and Restricted Cash Cash and cash equivalents consist of highly liquid investments with original maturities of 90 days or less from the date of purchase. We define restricted cash as cash that cannot be withdrawn or used for general operating activities. Restricted cash is classified as current or noncurrent assets based on the contractual or estimated term of the remaining restriction.
Marketable Securities
We hold investments in marketable securities consisting of U.S. and non-U.S. government securities, investment-grade corporate and government agency securities, certificates of deposit, and commercial paper. We classify our marketable securities as available-for-sale investments in current assets because they represent investments available for current operations. Our available-for-sale investments are carried at fair value with any unrealized gains and losses included in accumulated other comprehensive income (loss) in stockholders’ equity (deficit). Expected losses from credit related impairment, if any, are recognized through an allowance for credit losses and adjusted each period for changes in credit risk. Gains or losses on the sale or maturities of marketable securities are determined using the specific identification method and recorded in other income (expense), net in our consolidated statements of operations.
Fair Value Measurements
Certain financial instruments are required to be recorded at fair value. Other financial instruments, including cash, cash equivalents, and restricted cash, are recorded at cost, which approximates fair value. Additionally, the carrying amounts of accounts receivable, prepaid expenses and other current assets, accounts payable, and accrued expenses and other current liabilities approximate fair value due to their short-term nature.
Fair value is defined as the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value:
Level 1: Quoted market prices in active markets for identical assets or liabilities
Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data
Level 3: Unobservable inputs reflecting the reporting entity’s own assumptions or external inputs from inactive markets
We classify our cash equivalents and marketable securities within Level 1 or Level 2 because we use quoted market prices or alternative pricing sources and models utilizing market observable inputs to determine their fair value. There were no transfers between levels during the periods presented.
Accounts Receivable, Net Accounts receivable are recorded at the invoiced amount, net of any allowance for doubtful accounts due to expected credit losses and potentially uncollectible receivables. We apply a “single loss” rate approach to the overall accounts receivable portfolio and also evaluate the aging, historical write-offs, and collectability of accounts receivable on a customer-by-customer basis.
Property and Equipment, Net
Property and equipment are stated at cost, less accumulated depreciation. We compute depreciation using the straight-line method over the estimated useful lives of the assets, which is generally three to five years for computer equipment, furniture, and fixtures. Leasehold improvements are depreciated over the shorter of the lease term or the useful life of the assets. Maintenance and repairs are expensed as incurred.
Software Development Costs
Software development costs include costs to develop software to be used to meet internal needs and applications used to deliver our services. We capitalize development costs related to these software applications once the preliminary project stage is complete, it is probable that the project will be completed, and the software will be used to perform the function intended. Due to the iterative process of our development projects, development costs meeting our capitalization criteria were not material for the periods presented.
Leases
Leases arise from contractual obligations that convey the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. We determine if a contract is, or contains, a lease at contract inception. All of our leases are operating leases and are included in operating lease right-of-use assets, net, operating lease liabilities, and operating lease liabilities, non-current on the consolidated balance sheets.
Operating lease right-of-use assets and operating lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term discounted using our incremental borrowing rate. Operating lease right-of-use assets also include any lease payments made and exclude lease incentives. As our leases do not provide an implicit rate,
the incremental borrowing rate used is estimated based on what we would have to pay on a collateralized basis over a similar term as the lease. Lease payments include fixed payments and any variable payments based on an index or rate, and are recognized as lease expense on a straight-line basis over the term of the lease.
We have entered into various non-cancellable operating leases agreements, primarily for the use of office space, expiring at various dates through 2029. Our lease terms include options to extend or terminate the lease when it is reasonably certain they will be exercised. We consider these options in determining the lease term on a lease-by-lease basis. We account for lease components and non-lease components as a single lease component for all leases. None of our lease agreements contain material non-lease components, material residual value guarantees, or restrictive covenants. We have elected an accounting policy to not recognize short-term leases, which have a lease term of twelve months or less, on the consolidated balance sheets.
Deferred Offering Costs Prior to our IPO, deferred offering costs, which consisted of direct incremental legal, accounting, consulting, and other fees related to the IPO, were capitalized in other noncurrent assets on the consolidated balance sheets. After the IPO, the deferred offering costs were reclassified into additional paid-in capital as an offset against IPO proceeds.
Business Combinations
We include the results of operations of the businesses that we acquire from the date of acquisition. We determine the fair value of the assets acquired and liabilities assumed based on their estimated fair values as of the respective date of acquisition. The excess purchase price over the fair values of identifiable assets and liabilities is recorded as goodwill. Determining the fair value of assets acquired and liabilities assumed requires management to use significant judgment and estimates including the selection of valuation methodologies, estimates of future revenues and cash flows, discount rates, and selection of comparable companies. Our estimates of fair value are based on assumptions believed to be reasonable, but are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates.
When we issue cash payments or grants of equity to selling stockholders in connection with an acquisition, we evaluate whether the payments or awards are compensatory. This evaluation includes whether cash payments or stock award vesting is contingent on the continued employment of the selling stockholder beyond the acquisition date. If continued employment is required for the cash to be paid or stock awards to vest, the award is treated as compensation for post-acquisition services and is recognized as compensation expense.
Transaction costs associated with business combinations are expensed as incurred and are included in general and administrative expenses in our consolidated statements of operations.
Goodwill Goodwill represents the excess of the aggregate purchase consideration over the fair value of net assets acquired in a business combination. We perform our annual impairment test on October 1. We also test for impairment whenever events or circumstances indicate that the fair value of goodwill has been impaired. Our impairment tests are based on a single operating segment and reporting unit structure.
Acquired Intangible Assets and Cryptocurrency
Identifiable acquired intangible assets consist primarily of acquisition-related developed technology. We determine the appropriate useful life of our intangible assets by performing an analysis of expected cash flows of the acquired assets. Intangible assets are amortized on a straight-line basis over the estimated useful life of up to five years.
We account for cryptocurrency investments, and cryptocurrency received in exchange for goods and services, as intangible assets with indefinite useful lives, which are measured at cost, net of any impairment losses incurred since acquisition, on the consolidated balance sheets. Cryptocurrency accounted for as intangible assets are not amortized, but assessed for impairment quarterly, or more frequently, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite-lived asset is impaired.
The computation of gains or losses on the sale of cryptocurrency, or use of cryptocurrency to settle any obligations, is based on the difference between the market price quoted on our principal market for cryptocurrencies at the time of sale or settlement and the cost basis of the cryptocurrency, which is determined on a first-in, first-out basis.
Impairment of Long-Lived Assets
We evaluate recoverability of our property and equipment and definite-lived intangible assets when events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Events and changes in circumstances considered in determining whether the carrying value of long-lived assets may not be recoverable include significant changes in performance relative to expected operating results, significant changes in asset use, significant negative industry or economic trends, and changes in our business strategy. Recoverability of these assets is measured by comparison of their carrying amount to future undiscounted cash flows to be generated. If impairment is indicated based on a comparison of the assets’ carrying values and the undiscounted cash flows, the impairment loss is measured as the amount by which the carrying amount exceeds the fair value of the assets. We determined that there were no events or changes in circumstances that indicated our long-lived assets were impaired during the periods presented.
Concentration of Business Risk
We primarily use Amazon Web Services and Google Cloud Platform for our hosting requirements. A disruption or loss of service from Amazon Web Services or Google Cloud Platform could harm our ability to operate. Although we believe there are other qualified providers that can provide these services, a transition to a new provider could create a disruption to our business and negatively impact our operating results.
Concentration of Credit Risk
Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash and cash equivalents, restricted cash, marketable securities, and accounts receivable. We maintain cash and cash equivalents with several financial institutions. We believe that the financial institutions that hold our cash and cash equivalents are financially sound and, accordingly, minimal credit risks exist with respect to these balances. We maintain investments in U.S. and non-U.S. government securities, investment-grade corporate and government agency securities, certificates of deposit, commercial paper, and money market accounts that carry high credit ratings and accordingly, minimal credit risk exists with respect to these balances.
Segments
We have determined that we have a single operating segment. Our Chief Executive Officer is our chief operating decision maker who evaluates performance and makes operating decisions about allocating resources based on consolidated financial data.
We have one reportable segment as our chief operating decision maker reviews consolidated profitability measures in managing the business. Specifically, our chief operating decision maker uses consolidated net income (loss) as the measure of segment profit or loss for evaluating performance and allocating resources through comparison of actual amounts against budgeted and prior period amounts.
Recently Adopted Accounting Pronouncements and Accounting Pronouncements Not Yet Adopted
In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires disclosure of incremental segment information on an annual and interim basis. All disclosure requirements of this standard are required for entities with a single reportable segment. We adopted this standard effective January 1, 2024. Adoption of this standard resulted
in additional segment-related disclosures made in Note 18—Segment and Geographic Information, but did not impact our consolidated financial statements.
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires an entity to disclose specific categories in the effective tax rate reconciliation as well as provide additional information for reconciling items that meet a quantitative threshold. This standard also requires certain disaggregated disclosures related to income from continuing operations, income tax expense, and income taxes paid. The standard is effective for us beginning January 1, 2025, with early adoption permitted. We are currently evaluating the impact the adoption will have on our disclosures.
In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires an entity to disclose disaggregated information about certain income statement expense line items. The standard is effective for us beginning January 1, 2027, with early adoption permitted. We are currently evaluating the impact the adoption will have on our disclosures.
Net Income (Loss) per Share
We compute net income (loss) per share of Class A and Class B common stock using the two-class method required for multiple classes of common stock and participating securities. Prior to the IPO, our participating securities included Series A, Series A-1, Series B, Series C, Series D, Series D-1, Series E, Series F, and Series F-1 convertible preferred stock, as the holders of these series of preferred stock were entitled to receive noncumulative dividends subject to certain requirements at an annual rate of 8% of the respective original issue price then in effect in the event that a dividend was paid on common stock.
In connection with our IPO, our Series A, Series A-1, Series B, Series C, Series D, Series D-1, Series E, and Series F preferred stock converted on a one-to-one basis into 67,917,432 shares of Class B common stock, and our Series F-1 preferred stock converted on a one-to-one basis into 5,104,017 shares of Class A common stock. These shares are weighted in the denominator of net income (loss) per share for Class A and Class B common stock for the portion of the time outstanding subsequent to our IPO.
The holders of Series A, Series A-1, Series B, Series C, Series D, Series D-1, Series E, Series F, and Series F-1 convertible preferred stock did not have a contractual obligation to share in our losses. As such, our net losses for the years ended December 31, 2023 and 2022 were not allocated to these participating securities.
Commitments and Contingencies
From time to time, we may become involved in claims and other legal matters arising in the normal course of business. We record a loss contingency when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. We also disclose material contingencies when we believe a loss is not probable but reasonably possible. Accounting for contingencies requires us to use judgment related to both the likelihood of a loss and the estimate of the amount or range of loss. We are not aware of any pending matters, individually or in the aggregate, that are expected to have a material adverse impact on our results of operations, financial position, or cash flows as of December 31, 2024 and 2023. Legal fees and other expenses associated with such matters are expensed as incurred.
v3.25.0.1
Revenue (Tables)
12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
The following table represents our revenue disaggregated by source:
Year ended December 31,
202420232022
(in thousands)
Advertising revenue $1,185,456 $788,782 $652,562 
Other revenue 114,749 15,247 14,139 
Total revenue $1,300,205 $804,029 $666,701 
The following table represents our revenue disaggregated by geography based on the billing address of the customer:
Year ended December 31,
202420232022
(in thousands)
United States $1,063,556 $651,378 $548,964 
Rest of world(1)
236,649 152,651 117,737 
Total revenue $1,300,205 $804,029 $666,701 
______________
(1)Other than the United States, no individual country represented 10% or more of total revenue during the years ended December 31, 2024, 2023, and 2022.
v3.25.0.1
Net Income (Loss) per Share (Tables)
12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
Calculation of Basic and Diluted Net Income (Loss) per Share Attributable to Common Stock
The following table presents the calculation of basic and diluted net income (loss) per share attributable to common stock:
Year ended December 31,
202420232022
Class AClass BClass AClass BClass AClass B
(in thousands, except share and per share data)
Numerator:
Net income (loss) attributable to common stockholders$(231,631)$(252,645)$(11,033)$(79,791)$(16,272)$(142,278)
Denominator:
Basic weighted-average common shares outstanding69,580,04875,892,3417,183,72351,954,3635,875,65651,375,456
Diluted weighted-average common shares outstanding69,580,04875,892,3417,183,72351,954,3635,875,65651,375,456
Basic and diluted income (loss) per share attributable to common stockholders$(3.33)$(3.33)$(1.54)$(1.54)$(2.77)$(2.77)
Schedule of Antidilutive Securities Excluded from Computation of Diluted Net Income (Loss) per Share Attributable to Common Stock
The following outstanding potentially dilutive shares, including stock options that have been exercised prior to vesting, were excluded from the computation of diluted net income (loss) per share attributable to common stock for the periods presented because the impact of including them would have been anti-dilutive.
Year ended December 31,
202420232022
Class AClass BClass AClass BClass AClass B
Stock options11,501,771 3,185,767 22,600,876 7,213,522 16,290,463 8,228,797 
Unvested RSUs and RSAs10,746,145 598,102 24,166,383 2,720,150 12,953,243 4,362,661 
Preferred shares— — 5,104,017 67,917,432 5,104,017 67,917,432 
22,247,916 3,783,869 51,871,276 77,851,104 34,347,723 80,508,890 
v3.25.0.1
Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Schedule of Financial Assets Measured at Fair Value on a Recurring Basis
The following table sets forth our financial assets that are measured at fair value on a recurring basis:
December 31, 2024
Fair value
hierarchy
level
Cost or
amortized
cost
Gross
unrealized
gains
Gross
unrealized
losses
Fair
value
(in thousands)
Cash equivalents:
Money market funds Level 1$497,461 $— $— $497,461 
U.S. treasury securities
Level 1
5,979 — 5,981 
Corporate bondsLevel 21,066 — 1,068 
Marketable securities:
U.S. treasury securities Level 1817,996 1,120 (396)818,720 
U.S. agency bonds Level 2117,965 15 (62)117,918 
Corporate bonds Level 2159,424 400 (86)159,738 
Commercial paper Level 2182,264 99 (22)182,341 
Total $1,782,155 $1,638 $(566)$1,783,227 
December 31, 2023
Fair value
hierarchy
level
Cost or
amortized
cost
Gross
unrealized
gains
Gross
unrealized
losses
Fair
value
(in thousands)
Cash equivalents:
Money market funds Level 1$345,555 $— $— $345,555 
Commercial paperLevel 29,994 — (9)9,985 
Marketable securities:
U.S. treasury securities Level 1426,734 697 (188)427,243 
U.S. agency bondsLevel 277,535 13 (34)77,514 
Non-U.S. government securitiesLevel 221,723 10 (27)21,706 
Corporate bondsLevel 294,725 310 (81)94,954 
Certificates of depositLevel 22,810 — (1)2,809 
Commercial paperLevel 2187,596 148 (24)187,720 
Total $1,166,672 $1,178 $(364)$1,167,486 
v3.25.0.1
Balance Sheet Components (Tables)
12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consisted of the following:
December 31,
2024
December 31,
2023
(in thousands)
Prepaid expenses$14,583 $11,930 
Other receivables 11,500 4,695 
Interest receivable 4,695 3,071 
Other 2,280 1,590 
Total prepaid expenses and other current assets$33,058 $21,286 
Schedule of Property and Equipment, Net
Property and equipment, net consisted of the following:
December 31,
2024
December 31,
2023
(in thousands)
Computer equipment, furniture, and fixtures$15,832 $14,136 
Leasehold improvements8,017 7,597 
Total property and equipment 23,849 21,733 
Less: accumulated depreciation(11,197)(6,787)
Total property and equipment, net $12,652 $14,946 
Schedule of Accrued Expenses and Other Current Liabilities
Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consisted of the following:
December 31,
2024
December 31,
2023
(in thousands)
Accrued compensation and benefits$63,441 $37,964 
Deferred revenue14,805 7,250 
Accrued expenses31,817 26,740 
Revenue share payable and other6,939 2,549 
Holdback liability from acquisitions— 6,111 
Other7,462 2,735 
Total accrued expenses and other current liabilities$124,464 $83,349 
v3.25.0.1
Operating Leases (Tables)
12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Components of Lease Cost, Lease Term and Discount Rate
The components of lease cost were as follows:
Year ended December 31,
202420232022
(in thousands)
Operating lease cost$7,231 $13,062 $11,077 
Short-term lease cost3,324 3,857 4,291 
Variable lease cost278 749 781 
Total lease costs$10,833 $17,668 $16,149 
The weighted-average remaining lease term and discount rate related to the operating leases were as follows:
December 31,
2024
December 31,
2023
Weighted-average remaining lease term (in years)4.004.84
Weighted-average discount rate6.48 %6.65 %
Maturity of Lease Liabilities
The present value of our operating lease liabilities as of December 31, 2024 was as follows:
(in thousands)
2025$7,509 
20267,502 
20277,414 
20286,256 
20291,484 
Total undiscounted lease payments
30,165 
Less: imputed interest
(3,463)
Present value of lease liabilities
$26,702 
Operating lease liabilities
6,137 
Operating lease liabilities, noncurrent
20,565 
Total
$26,702 
v3.25.0.1
Goodwill and Intangible Assets (Tables)
12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill
The change in the carrying amount of goodwill during the year ended December 31, 2024 was as follows:
(in thousands)
Balance as of December 31, 2023$26,299 
Goodwill acquired15,875 
Balance as of December 31, 2024$42,174 
Schedule of Acquired Intangible Assets
Acquired intangible assets consisted of the following:
December 31, 2024
Gross carrying
value
Accumulated
amortization
Net carrying
value
Weighted-average remaining useful life (years)
(in thousands, except year data)
Developed technology$47,460 $22,051 $25,409 2.6
Other intangible assets600 600 — — 
Total acquired intangible assets$48,060 $22,651 $25,409 
December 31, 2023
Gross carrying
value
Accumulated
amortization
Net carrying
value
Weighted-average remaining useful life (years)
(in thousands, except year data)
Developed technology$43,160 $12,973 $30,187 3.6
Other intangible assets600 467 133 0.3
Total acquired intangible assets$43,760 $13,440 $30,320 
Schedule of Future Amortization Expense Related to Acquired Intangible Assets
The estimated future amortization expense related to acquired intangible assets as of December 31, 2024 was as follows:
(in thousands)
2025$9,913 
20269,913 
20275,583 
Total$25,409 
v3.25.0.1
Commitment and Contingencies (Tables)
12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Future Payments under Non-Cancellable Purchase Obligations
As of December 31, 2024, future payments under non-cancellable purchase obligations were as follows:
(in thousands)
2025$173,662 
2026147,128 
202716,185 
2028
Total
$336,978 
v3.25.0.1
Convertible Preferred Stock (Tables)
12 Months Ended
Dec. 31, 2024
Temporary Equity Disclosure [Abstract]  
Schedule of Outstanding Convertible Preferred Stock
Convertible preferred stock outstanding consisted of the following as of December 31, 2023:
Shares
authorized
Shares issued and outstandingOriginal issue price per shareAggregate
liquidation
preference
Net carrying value
(in thousands, except share and per share data)
Series A7,500,0007,500,000$2.67 $35,000 $21,670 
Series A-1114,746114,7465.93 680 680 
Series B17,564,93717,564,9376.26 110,011 130,567 
Series C 10,073,58910,073,58915.77 158,900 158,048 
Series D13,833,61710,290,49321.69 223,163 223,092 
Series D-113,833,6173,543,12421.69 76,837 76,687 
Series E 12,195,63812,195,63842.47 518,002 517,577 
Series F 6,634,9056,634,90561.79 410,000 409,862 
Series F-1 5,113,7325,104,01761.79 315,400 315,309 
Total 86,864,78173,021,449$1,847,993 $1,853,492 
v3.25.0.1
Stockholders' Equity (Deficit) (Tables)
12 Months Ended
Dec. 31, 2024
Equity [Abstract]  
Schedule of Stock Reserved for Future Issuance
We have reserved the following shares of common stock, on an as-converted basis, for future issuance:
December 31,
2024
December 31,
2023
Outstanding stock options14,687,538 29,795,909 
Outstanding RSUs11,175,380 27,627,171 
Conversion of outstanding convertible preferred stock— 73,021,449 
Remaining shares reserved for future issuances under the 2017 Plan— 7,919,000 
Remaining shares reserved for future issuances under the 2024 Plan36,711,788 — 
Shares reserved for community impact initiatives and charitable activities1,337,205 1,337,205 
Total shares of common stock reserved63,911,911 139,700,734 
v3.25.0.1
Stock-Based Compensation (Tables)
12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Summary of RSU and RSA Activity
The following table summarizes the RSU and RSA activity for the year ended December 31, 2024:
Service-
based
RSUs
RSAsMarket and Performance-
based
RSUs
Total RSUs and RSAsWeighted-
average grant
date fair
value
Unvested as of December 31, 202325,406,057 87,030 1,393,446 26,886,533 $29.17 
Granted5,170,456 153,648 86,706 5,410,810 $56.96 
Vested
(17,753,004)(71,811)(1,351,867)(19,176,682)$31.80 
Canceled/Forfeited
(1,745,625)— (30,789)(1,776,414)$31.15 
Unvested as of December 31, 202411,077,884 168,867 97,496 11,344,247 $37.67 
Summary of Stock Option Activity
The following table summarizes the stock option activity during the year ended December 31, 2024:
Outstanding
stock
options
Weighted-
average
exercise
price
Weighted-
average
remaining
contractual
life
(years)
Aggregate
intrinsic
value
(in thousands, except share, per share, and year data)
Balance as of December 31, 202329,795,909 $17.83 6.00$500,472 
Exercised
(15,018,424)5.92 
Canceled/Forfeited
(89,947)8.89 
Balance as of December 31, 202414,687,538 $30.07 6.87$1,958,924 
Vested as of December 31, 20247,495,598 $15.88 4.88$1,106,061 
Vested and expected to vest as of December 31, 202414,687,538 $30.07 6.87$1,958,924 
Schedule of Weighted-Average Assumptions Used to Determine Fair Value of Employee Stock Options
The following weighted-average assumptions were used to determine the fair value of employee stock options granted during the year ended December 31, 2023:
Expected term (in years)6.31
Expected volatility60.66 %
Risk-free interest rate3.83 %
Expected dividend yield0
Summary of Components of Stock-Based Compensation Expense
The following table summarizes the components of stock-based compensation expense recognized in the consolidated statements of operations for all periods presented:
Year ended December 31,
202420232022
(in thousands)
Cost of revenue$620 $101 $133 
Research and development441,629 23,825 35,641 
Sales and marketing80,436 5,555 7,576 
General and administrative278,961 18,117 11,960 
Stock-based compensation expense
$801,646 $47,598 $55,310 
v3.25.0.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Schedule of Geographical Breakdown of Income (Loss) before Income Taxes
For the years ended December 31, 2024, 2023, and 2022, the geographical breakdown of our income (loss) before income taxes is as follows:
Year ended December 31,
202420232022
(in thousands)
Domestic income (loss)$(493,371)$(92,627)$(162,330)
Foreign income (loss)8,164 5,604 4,402 
Income (loss) before income taxes$(485,207)$(87,023)$(157,928)
Schedule of Components of Income Tax Expense (Benefit)
For the years ended December 31, 2024, 2023, and 2022, income tax expense (benefit) consisted of the following:
Year ended December 31,
202420232022
(in thousands)
Current income tax expense (benefit):
Federal$(141)$1,290 $859 
State474 1,133 610 
Foreign851 1,468 1,231 
Total current income tax expense (benefit)1,184 3,891 2,700 
Deferred income tax expense (benefit):
Federal(237)— (1,767)
Foreign(1,878)(90)(311)
Total deferred income tax expense (benefit)(2,115)(90)(2,078)
Total income tax expense (benefit)$(931)$3,801 $622 
Reconciliation of Effective Tax Rate From Statutory Federal Rate
Our effective tax rate, as a percentage of pre-tax income (loss), differs from the statutory federal rate as follows:
Year ended December 31,
202420232022
Statutory federal income tax rate21.0 %21.0 %21.0 %
State income taxes, net of federal benefit5.3 1.2 2.3 
Non-deductible compensation
(14.0)— — 
Stock-based compensation44.4 3.9 0.6 
Research and development credits14.6 13.5 14.1 
Change in valuation allowance(71.0)(41.1)(37.4)
Other(0.2)(2.9)(1.0)
Effective tax rate0.1 %(4.4)%(0.4)%
Schedule of Major Components of Deferred Tax Assets and Liabilities The major components of deferred tax assets and liabilities were as follows:
December 31,
2024
December 31,
2023
(in thousands)
Deferred tax assets:
Net operating loss carryforwards$149,735 $56,938 
Stock-based compensation28,586 21,364 
Lease liability6,206 5,819 
Capitalized research and development costs268,232 98,267 
Research and development credits124,116 53,946 
Other13,351 4,216 
Gross deferred tax assets590,226 240,550 
Valuation allowance(572,894)(228,001)
Total deferred tax assets, net of valuation allowance17,332 12,549 
Deferred tax liabilities:
Right-of-use asset(5,436)(5,426)
Acquired intangibles(9,727)(6,895)
Total deferred tax liabilities(15,163)(12,321)
Net deferred tax assets (liabilities)$2,169 $228 
Summary of Activity Related to Gross Unrecognized Tax Benefits
The following table summarizes the activity related to our gross unrecognized tax benefits during the years ended December 31, 2024, 2023, and 2022:
Year ended December 31,
202420232022
(in thousands)
Beginning balance of unrecognized tax benefits$19,236 $16,428 $8,982 
Increases/(decreases) related to prior year tax positions 1,444 (1,750)1,925 
Increases/(decreases) related to current year tax positions 23,181 4,558 5,521 
Ending balance of unrecognized tax benefits$43,861 $19,236 $16,428 
v3.25.0.1
Segment and Geographic Information (Tables)
12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Schedule of Segment Net Income (Loss)
The following table presents the calculation of segment net income (loss):
Year ended December 31,
202420232022
(in thousands)
Revenue$1,300,205 $804,029 $666,701 
Adjusted cost of revenue(1)
122,975 110,758 103,952 
Adjusted gross profit1,177,230 693,271 562,749 
Adjusted operating expenses(2)
879,223 762,546 671,143 
Stock-based compensation and related taxes842,932 49,086 55,768 
Depreciation and amortization15,643 13,702 8,000 
Interest (income) expense, net(78,121)(53,281)(15,681)
Income tax expense (benefit)(931)3,801 622 
Other segment expenses(3)
2,760 8,241 1,447 
Segment net income (loss)$(484,276)$(90,824)$(158,550)
Consolidated net income (loss)$(484,276)$(90,824)$(158,550)
________________
(1)Adjusted cost of revenue is cost of revenue adjusted for stock-based compensation and related taxes and depreciation and amortization as follows:
Year ended December 31,
202420232022
(in thousands)
Cost of revenue$123,595 $111,011 $104,799 
Less:
Stock-based compensation and related taxes620 101 133 
Depreciation and amortization— 152 714 
Adjusted cost of revenue$122,975 $110,758 $103,952 
(2)Adjusted operating expenses is operating expenses (comprised of research and development, sales and marketing, and general and administrative expenses) adjusted for stock-based compensation and related taxes, depreciation and amortization, and restructuring costs as follows:
Year ended December 31,
202420232022
(in thousands)
Operating expenses$1,737,178 $833,179 $734,064 
Less:
Stock-based compensation and related taxes842,312 48,985 55,635 
Depreciation and amortization15,643 13,550 7,286 
Restructuring costs— 8,098 — 
Adjusted operating expenses$879,223 $762,546 $671,143 
(3)Other segment expenses primarily includes restructuring costs, realized gains and losses on sales of marketable securities, and foreign currency transaction gains and losses.
v3.25.0.1
Basis of Presentation and Significant Accounting Policies (Details)
$ / shares in Units, $ in Thousands
12 Months Ended
Mar. 25, 2024
USD ($)
$ / shares
shares
Dec. 31, 2024
USD ($)
class
segment
shares
Dec. 31, 2023
USD ($)
shares
Dec. 31, 2022
USD ($)
Class of Stock [Line Items]        
Proceeds from IPO | $ $ 600,000 $ 600,022 $ 0 $ 0
Underwriting discounts and commissions | $ 31,600      
Classes of common stock | class   3    
Stock-based compensation expense | $ 534,700      
Tax withholding obligation | $ $ 189,900 $ 294,573 $ 4,320 0
Total shares authorized (in shares) 2,340,000,000      
Preferred stock, shares authorized (in shares) 100,000,000 100,000,000 0  
Advertising expense | $   $ 9,200 $ 8,200 $ 34,400
Deferred offering costs | $     $ 16,500  
Useful life of intangible assets   5 years    
Number of operating segments | segment   1    
Minimum        
Class of Stock [Line Items]        
Property and equipment useful life   3 years    
Maximum        
Class of Stock [Line Items]        
Property and equipment useful life   5 years    
IPO        
Class of Stock [Line Items]        
Shares issued and sold (in shares) 18,576,527      
Share price (in dollars per share) | $ / shares $ 34.00      
Over-Allotment Option        
Class of Stock [Line Items]        
Shares issued and sold (in shares) 3,300,000      
Stockholders | IPO        
Class of Stock [Line Items]        
Shares issued and sold (in shares) 6,723,473      
Class B        
Class of Stock [Line Items]        
Conversion of redeemable convertible preferred stock into common stock in connection with initial public offering (in shares) 67,917,432      
Shares withheld for tax withholding requirements (in shares) 723,341      
Issuance of restricted stock awards (in shares) 1,347,456      
Common stock, shares authorized (in shares) 140,000,000 140,000,000 142,000,000  
Class A        
Class of Stock [Line Items]        
Conversion of redeemable convertible preferred stock into common stock in connection with initial public offering (in shares) 5,104,017      
Shares withheld for tax withholding requirements (in shares) 4,861,113      
Issuance of restricted stock awards (in shares) 10,502,390      
Common stock, shares authorized (in shares) 2,000,000,000 2,000,000,000 189,000,000  
Class C common stock        
Class of Stock [Line Items]        
Common stock, shares authorized (in shares) 100,000,000 100,000,000 0  
v3.25.0.1
Revenue - Disaggregation of Revenue by Source (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Disaggregation of Revenue [Line Items]      
Revenue $ 1,300,205 $ 804,029 $ 666,701
Advertising revenue      
Disaggregation of Revenue [Line Items]      
Revenue 1,185,456 788,782 652,562
Other revenue      
Disaggregation of Revenue [Line Items]      
Revenue $ 114,749 $ 15,247 $ 14,139
v3.25.0.1
Revenue - Disaggregation of Revenue by Geography (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Disaggregation of Revenue [Line Items]      
Revenue $ 1,300,205 $ 804,029 $ 666,701
United States      
Disaggregation of Revenue [Line Items]      
Revenue $ 1,063,556 $ 651,378 $ 548,964
United States | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk      
Disaggregation of Revenue [Line Items]      
Concentration risk, percentage (more than) 10.00% 10.00% 10.00%
Rest of world      
Disaggregation of Revenue [Line Items]      
Revenue $ 236,649 $ 152,651 $ 117,737
v3.25.0.1
Revenue - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]      
Deferred revenue $ 14.9 $ 7.4  
Revenue recognized from deferred revenue balance in prior periods 7.2 $ 7.8 $ 6.5
Aggregate amount of remaining performance obligations 252.9    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01      
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]      
Aggregate amount of remaining performance obligations $ 114.6    
Expected timing of revenue recognition for remaining performance obligations 1 year    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01      
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]      
Aggregate amount of remaining performance obligations $ 113.2    
Expected timing of revenue recognition for remaining performance obligations 1 year    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01      
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]      
Aggregate amount of remaining performance obligations $ 25.1    
Expected timing of revenue recognition for remaining performance obligations 1 year    
v3.25.0.1
Net Income (Loss) per Share - Narrative (Details)
12 Months Ended
Mar. 25, 2024
shares
Dec. 31, 2023
Class of Stock [Line Items]    
Preferred stock, annual dividend rate   8.00%
Conversion ratio 1  
Class B    
Class of Stock [Line Items]    
Conversion of redeemable convertible preferred stock into common stock in connection with initial public offering (in shares) 67,917,432  
Class A    
Class of Stock [Line Items]    
Conversion of redeemable convertible preferred stock into common stock in connection with initial public offering (in shares) 5,104,017  
v3.25.0.1
Net Income (Loss) per Share - Computation of Net Income (Loss) per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Denominator:      
Basic weighted-average common shares outstanding (in shares) 145,472,389 59,138,086 57,251,112
Diluted weighted-average common shares outstanding (in shares) 145,472,389 59,138,086 57,251,112
Basic income (loss) per share attributable to common stockholders (in dollars per share) $ (3.33) $ (1.54) $ (2.77)
Diluted income (loss) per share attributable to common stockholders (in dollars per share) $ (3.33) $ (1.54) $ (2.77)
Class A      
Numerator:      
Net income (loss) attributable to common stockholders $ (231,631) $ (11,033) $ (16,272)
Denominator:      
Basic weighted-average common shares outstanding (in shares) 69,580,048 7,183,723 5,875,656
Diluted weighted-average common shares outstanding (in shares) 69,580,048 7,183,723 5,875,656
Basic income (loss) per share attributable to common stockholders (in dollars per share) $ (3.33) $ (1.54) $ (2.77)
Diluted income (loss) per share attributable to common stockholders (in dollars per share) $ (3.33) $ (1.54) $ (2.77)
Class B      
Numerator:      
Net income (loss) attributable to common stockholders $ (252,645) $ (79,791) $ (142,278)
Denominator:      
Basic weighted-average common shares outstanding (in shares) 75,892,341 51,954,363 51,375,456
Diluted weighted-average common shares outstanding (in shares) 75,892,341 51,954,363 51,375,456
Basic income (loss) per share attributable to common stockholders (in dollars per share) $ (3.33) $ (1.54) $ (2.77)
Diluted income (loss) per share attributable to common stockholders (in dollars per share) $ (3.33) $ (1.54) $ (2.77)
v3.25.0.1
Net Income (Loss) per Share - Anti-dilutive Shares Excluded from Computation of Net Income (Loss) per Share (Details) - shares
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Class A      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of net income (loss) per share (in shares) 22,247,916 51,871,276 34,347,723
Class A | Stock options      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of net income (loss) per share (in shares) 11,501,771 22,600,876 16,290,463
Class A | Unvested RSUs and RSAs      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of net income (loss) per share (in shares) 10,746,145 24,166,383 12,953,243
Class A | Preferred shares      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of net income (loss) per share (in shares) 0 5,104,017 5,104,017
Class B      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of net income (loss) per share (in shares) 3,783,869 77,851,104 80,508,890
Class B | Stock options      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of net income (loss) per share (in shares) 3,185,767 7,213,522 8,228,797
Class B | Unvested RSUs and RSAs      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of net income (loss) per share (in shares) 598,102 2,720,150 4,362,661
Class B | Preferred shares      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of net income (loss) per share (in shares) 0 67,917,432 67,917,432
v3.25.0.1
Fair Value Measurements - Schedule of Financial Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Marketable securities:    
Gross unrealized gains $ 1,638 $ 1,178
Gross unrealized losses (566) (364)
Total    
Cost or amortized cost 1,782,155 1,166,672
Fair value 1,783,227 1,167,486
Money market funds    
Cash equivalents:    
Cost or amortized cost 497,461 345,555
Commercial paper | Cash equivalents    
Marketable securities:    
Cost or amortized cost   9,994
Gross unrealized gains   0
Gross unrealized losses   (9)
Fair value   9,985
Commercial paper | Marketable securities    
Marketable securities:    
Cost or amortized cost 182,264 187,596
Gross unrealized gains 99 148
Gross unrealized losses (22) (24)
Fair value 182,341 187,720
U.S. treasury securities    
Marketable securities:    
Cost or amortized cost   426,734
Gross unrealized gains   697
Gross unrealized losses   (188)
Fair value   427,243
U.S. treasury securities | Cash equivalents    
Marketable securities:    
Cost or amortized cost 5,979  
Gross unrealized gains 2  
Gross unrealized losses 0  
Fair value 5,981  
U.S. treasury securities | Marketable securities    
Marketable securities:    
Cost or amortized cost 817,996  
Gross unrealized gains 1,120  
Gross unrealized losses (396)  
Fair value 818,720  
U.S. agency bonds    
Marketable securities:    
Cost or amortized cost 117,965 77,535
Gross unrealized gains 15 13
Gross unrealized losses (62) (34)
Fair value 117,918 77,514
Non-U.S. government securities    
Marketable securities:    
Cost or amortized cost   21,723
Gross unrealized gains   10
Gross unrealized losses   (27)
Fair value   21,706
Corporate bonds    
Marketable securities:    
Cost or amortized cost   94,725
Gross unrealized gains   310
Gross unrealized losses   (81)
Fair value   94,954
Corporate bonds | Cash equivalents    
Marketable securities:    
Cost or amortized cost 1,066  
Gross unrealized gains 2  
Gross unrealized losses 0  
Fair value 1,068  
Corporate bonds | Marketable securities    
Marketable securities:    
Cost or amortized cost 159,424  
Gross unrealized gains 400  
Gross unrealized losses (86)  
Fair value $ 159,738  
Certificates of deposit    
Marketable securities:    
Cost or amortized cost   2,810
Gross unrealized gains   0
Gross unrealized losses   (1)
Fair value   $ 2,809
v3.25.0.1
Fair Value Measurements - Narrative (Details) - USD ($)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Fair Value Disclosures [Abstract]      
Impairment charges due to credit losses $ 0 $ 0 $ 0
Amortized cost of marketable securities with maturities with less than one year 989,200,000    
Amortized cost of marketable securities with maturities between one and five years $ 288,400,000    
v3.25.0.1
Balance Sheet Components - Prepaid Expenses and Other Current Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Prepaid expenses $ 14,583 $ 11,930
Other receivables 11,500 4,695
Interest receivable 4,695 3,071
Other 2,280 1,590
Total prepaid expenses and other current assets $ 33,058 $ 21,286
v3.25.0.1
Balance Sheet Components - Property and Equipment, Net (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment [Line Items]    
Total property and equipment $ 23,849 $ 21,733
Less: accumulated depreciation (11,197) (6,787)
Total property and equipment, net 12,652 14,946
Computer equipment, furniture, and fixtures    
Property, Plant and Equipment [Line Items]    
Total property and equipment 15,832 14,136
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Total property and equipment $ 8,017 $ 7,597
v3.25.0.1
Balance Sheet Components - Accrued Expenses and Other Current Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Accrued compensation and benefits $ 63,441 $ 37,964
Deferred revenue 14,805 7,250
Accrued expenses 31,817 26,740
Revenue share payable and other 6,939 2,549
Holdback liability from acquisitions 0 6,111
Other 7,462 2,735
Total accrued expenses and other current liabilities $ 124,464 $ 83,349
v3.25.0.1
Operating Leases - Components of Lease Cost (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Leases [Abstract]      
Operating lease cost $ 7,231 $ 13,062 $ 11,077
Short-term lease cost 3,324 3,857 4,291
Variable lease cost 278 749 781
Total lease costs $ 10,833 $ 17,668 $ 16,149
v3.25.0.1
Operating Leases - Lease Term and Discount Rate (Details)
Dec. 31, 2024
Dec. 31, 2023
Leases [Abstract]    
Weighted-average remaining lease term (in years) 4 years 4 years 10 months 2 days
Weighted-average discount rate 6.48% 6.65%
v3.25.0.1
Operating Leases - Maturity of Lease Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Leases [Abstract]    
2025 $ 7,509  
2026 7,502  
2027 7,414  
2028 6,256  
2029 1,484  
Total undiscounted lease payments 30,165  
Less: imputed interest (3,463)  
Present value of lease liabilities 26,702  
Operating lease liabilities 6,137 $ 3,707
Operating lease liabilities, noncurrent $ 20,565 $ 22,040
v3.25.0.1
Operating Leases - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Leases [Abstract]      
Operating lease right-of-use assets recognized in exchange for lease liabilities $ 4.7 $ 12.0 $ 16.4
Cash payments included in the measurement of operating lease liabilities $ 5.3 $ 8.9 $ 9.6
v3.25.0.1
Acquisitions (Details) - USD ($)
$ in Thousands
12 Months Ended
Jul. 15, 2024
Dec. 31, 2024
Dec. 31, 2023
Business Acquisition [Line Items]      
Weighted-average remaining useful life (years)   5 years  
Goodwill   $ 42,174 $ 26,299
July 2024 Acquisition      
Business Acquisition [Line Items]      
Aggregate purchase consideration $ 19,900    
Cash consideration 17,100    
Fair value of equity consideration 2,800    
Additional consideration 10,700    
Purchase consideration $ 4,300    
Weighted-average remaining useful life (years) 3 years    
Goodwill $ 15,900    
v3.25.0.1
Goodwill and Intangible Assets - Schedule of Goodwill (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2024
USD ($)
Goodwill [Roll Forward]  
Balance as of December 31, 2023 $ 26,299
Goodwill acquired 15,875
Balance as of December 31, 2024 $ 42,174
v3.25.0.1
Goodwill and Intangible Assets - Acquired Intangible Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross carrying value $ 48,060 $ 43,760
Accumulated amortization 22,651 13,440
Net carrying value 25,409 30,320
Developed technology    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross carrying value 47,460 43,160
Accumulated amortization 22,051 12,973
Net carrying value $ 25,409 $ 30,187
Weighted-average remaining useful life (years) 2 years 7 months 6 days 3 years 7 months 6 days
Other intangible assets    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross carrying value $ 600 $ 600
Accumulated amortization 600 467
Net carrying value $ 0 $ 133
Weighted-average remaining useful life (years)   3 months 18 days
v3.25.0.1
Goodwill and Intangible Assets - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]      
Amortization expense $ 9.2 $ 9.0 $ 0.0
v3.25.0.1
Goodwill and Intangible Assets - Future Amortization Expense (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]    
2025 $ 9,913  
2026 9,913  
2027 5,583  
Net carrying value $ 25,409 $ 30,320
v3.25.0.1
Debt (Details)
$ in Millions
12 Months Ended
May 23, 2023
Oct. 08, 2021
USD ($)
Dec. 31, 2024
USD ($)
instrument
Debt Instrument [Line Items]      
Letter of credit outstanding     $ 4.9
Commitment fee percentage     0.15%
Revolving Credit Facility | Revolving Credit Facility and Standby Letter of Credit | Line of Credit      
Debt Instrument [Line Items]      
Debt instrument term   5 years  
Maximum borrowing capacity   $ 750.0  
Available borrowing capacity     $ 745.1
Revolving Credit Facility | Revolving Credit Facility and Standby Letter of Credit Agreement, ABR Loans | Line of Credit      
Debt Instrument [Line Items]      
Interest rate floor (as a percent) 0.010    
Additional basis spread (as a percent) 0.0025    
Revolving Credit Facility | Revolving Credit Facility and Standby Letter of Credit Agreement, ABR Loans | Line of Credit | New York Federal Reserve Bank Rate      
Debt Instrument [Line Items]      
Basis spread on variable rate (as a percent) 0.50%    
Revolving Credit Facility | Revolving Credit Facility and Standby Letter of Credit Agreement, ABR Loans | Line of Credit | Secured Overnight Financing Rate (SOFR)      
Debt Instrument [Line Items]      
Basis spread on variable rate (as a percent) 1.00%    
Revolving Credit Facility | Revolving Credit Facility and Standby Letter of Credit Agreement, Outstanding Term Benchmark Loans | Line of Credit      
Debt Instrument [Line Items]      
Basis spread on variable rate (as a percent) 1.25%    
Revolving Credit Facility | Revolving Credit Facility and Standby Letter of Credit Agreement, Outstanding SONIA Loans | Line of Credit | Adjusted Daily Simple Sterling Over Night Indexed Average Rate (SONIA)      
Debt Instrument [Line Items]      
Basis spread on variable rate (as a percent) 1.25%    
Letter of Credit | Revolving Credit Facility and Standby Letter of Credit | Line of Credit      
Debt Instrument [Line Items]      
Maximum borrowing capacity   $ 100.0  
Debt of debt instruments | instrument     2
Available borrowing capacity     $ 95.1
v3.25.0.1
Commitment and Contingencies - Narrative (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Unrecorded Unconditional Purchase Obligation [Line Items]  
Purchase commitments $ 336,978
Cloud Infrastructure Agreements  
Unrecorded Unconditional Purchase Obligation [Line Items]  
Purchase commitments $ 480,000
v3.25.0.1
Commitment and Contingencies - Future Payments under Non-Cancellable Purchase Obligations (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
2025 $ 173,662
2026 147,128
2027 16,185
2028 3
Total $ 336,978
v3.25.0.1
Convertible Preferred Stock - Schedule of Outstanding Convertible Preferred Stock (Details) - USD ($)
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Temporary Equity [Line Items]      
Shares authorized (in shares) 86,864,781    
Shares issued (in shares) 73,021,449    
Shares outstanding (in shares) 73,021,449 73,021,449 73,021,449
Aggregate liquidation preference $ 1,847,993,000    
Net carrying value $ 1,853,492,000 $ 1,853,492,000 $ 1,853,492,000
Series A      
Temporary Equity [Line Items]      
Shares authorized (in shares) 7,500,000    
Shares issued (in shares) 7,500,000    
Shares outstanding (in shares) 7,500,000    
Original issue price per share (in dollars per share) $ 2.67    
Aggregate liquidation preference $ 35,000,000    
Net carrying value $ 21,670,000    
Series A-1      
Temporary Equity [Line Items]      
Shares authorized (in shares) 114,746    
Shares issued (in shares) 114,746    
Shares outstanding (in shares) 114,746    
Original issue price per share (in dollars per share) $ 5.93    
Aggregate liquidation preference $ 680,000    
Net carrying value $ 680,000    
Series B      
Temporary Equity [Line Items]      
Shares authorized (in shares) 17,564,937    
Shares issued (in shares) 17,564,937    
Shares outstanding (in shares) 17,564,937    
Original issue price per share (in dollars per share) $ 6.26    
Aggregate liquidation preference $ 110,011,000    
Net carrying value $ 130,567,000    
Series C      
Temporary Equity [Line Items]      
Shares authorized (in shares) 10,073,589    
Shares issued (in shares) 10,073,589    
Shares outstanding (in shares) 10,073,589    
Original issue price per share (in dollars per share) $ 15.77    
Aggregate liquidation preference $ 158,900,000    
Net carrying value $ 158,048,000    
Series D      
Temporary Equity [Line Items]      
Shares authorized (in shares) 13,833,617    
Shares issued (in shares) 10,290,493    
Shares outstanding (in shares) 10,290,493    
Original issue price per share (in dollars per share) $ 21.69    
Aggregate liquidation preference $ 223,163,000    
Net carrying value $ 223,092,000    
Series D-1      
Temporary Equity [Line Items]      
Shares authorized (in shares) 13,833,617    
Shares issued (in shares) 3,543,124    
Shares outstanding (in shares) 3,543,124    
Original issue price per share (in dollars per share) $ 21.69    
Aggregate liquidation preference $ 76,837,000    
Net carrying value $ 76,687,000    
Series E      
Temporary Equity [Line Items]      
Shares authorized (in shares) 12,195,638    
Shares issued (in shares) 12,195,638    
Shares outstanding (in shares) 12,195,638    
Original issue price per share (in dollars per share) $ 42.47    
Aggregate liquidation preference $ 518,002,000    
Net carrying value $ 517,577,000    
Series F      
Temporary Equity [Line Items]      
Shares authorized (in shares) 6,634,905    
Shares issued (in shares) 6,634,905    
Shares outstanding (in shares) 6,634,905    
Original issue price per share (in dollars per share) $ 61.79    
Aggregate liquidation preference $ 410,000,000    
Net carrying value $ 409,862,000    
Series F-1      
Temporary Equity [Line Items]      
Shares authorized (in shares) 5,113,732    
Shares issued (in shares) 5,104,017    
Shares outstanding (in shares) 5,104,017    
Original issue price per share (in dollars per share) $ 61.79    
Aggregate liquidation preference $ 315,400,000    
Net carrying value $ 315,309,000    
v3.25.0.1
Convertible Preferred Stock - Narrative (Details)
$ / shares in Units, $ in Millions
12 Months Ended
Dec. 31, 2023
USD ($)
director
$ / shares
Temporary Equity [Line Items]  
Noncumulative dividends, annual rate 0.08
Common stock, voting rights, number of directors elected | director 1
Temporary equity and common stock, number of elected directors | director 2
Series A  
Temporary Equity [Line Items]  
Dividend rate (in dollars per share) $ 0.21
Liquidation preference per share (in dollars per share) $ 4.67
Temporary equity, voting rights, number of directors elected | director 3
Series A-1  
Temporary Equity [Line Items]  
Dividend rate (in dollars per share) $ 0.47
Liquidation preference per share (in dollars per share) 5.93
Series B  
Temporary Equity [Line Items]  
Dividend rate (in dollars per share) 0.50
Liquidation preference per share (in dollars per share) $ 6.26
Temporary equity, voting rights, number of directors elected | director 1
Series C  
Temporary Equity [Line Items]  
Dividend rate (in dollars per share) $ 1.26
Liquidation preference per share (in dollars per share) 15.77
Series D  
Temporary Equity [Line Items]  
Dividend rate (in dollars per share) 1.73
Liquidation preference per share (in dollars per share) 21.69
Series D-1  
Temporary Equity [Line Items]  
Dividend rate (in dollars per share) 1.73
Liquidation preference per share (in dollars per share) 21.69
Series E  
Temporary Equity [Line Items]  
Dividend rate (in dollars per share) 3.40
Liquidation preference per share (in dollars per share) 42.47
Series F  
Temporary Equity [Line Items]  
Dividend rate (in dollars per share) 4.94
Liquidation preference per share (in dollars per share) 61.79
Series F-1  
Temporary Equity [Line Items]  
Dividend rate (in dollars per share) 4.94
Liquidation preference per share (in dollars per share) $ 61.79
Temporary equity, conversion ratio 1
Series A, Series A-1, Series B, Series C, Series D, Series D-1, Series E and Series F Convertible Preferred Stock  
Temporary Equity [Line Items]  
Temporary equity, conversion ratio 1
Series D and Series D-1 Preferred Stock  
Temporary Equity [Line Items]  
Temporary equity, conversion ratio 1
Series A and Series A-1 Convertible Preferred Stock  
Temporary Equity [Line Items]  
Automatic conversion threshold, closing of an initial public offering, aggregate net proceeds | $ $ 100.0
Temporary equity, automatic conversion threshold, liquidation event, value | $ $ 240.0
v3.25.0.1
Stockholders' Equity (Deficit) - Narrative (Details)
Dec. 31, 2024
vote
class
shares
Mar. 25, 2024
vote
shares
Feb. 29, 2024
shares
Dec. 31, 2023
shares
Class of Stock [Line Items]        
Classes of common stock | class 3      
Preferred stock, shares authorized (in shares) 100,000,000 100,000,000   0
Shares reserved (in shares) 63,911,911     139,700,734
Annual increase in shares under Incentive Plan as a percent of common shares outstanding     0.05  
Maximum shares authorized to be issued upon exercise of stock options (in shares)     185,661,778  
2024 Plan        
Class of Stock [Line Items]        
Shares reserved (in shares) 36,711,788   31,747,592 0
Class A        
Class of Stock [Line Items]        
Number of votes per share | vote 1      
Common stock, shares authorized (in shares) 2,000,000,000 2,000,000,000   189,000,000
Class B        
Class of Stock [Line Items]        
Number of votes per share | vote 10      
Conversion ratio 1      
Conversion of common stock, percent held threshold (as a percent) 0.075      
Common stock, shares authorized (in shares) 140,000,000 140,000,000   142,000,000
Class C        
Class of Stock [Line Items]        
Number of votes per share | vote   0    
Common stock, shares authorized (in shares) 100,000,000 100,000,000   0
v3.25.0.1
Stockholders' Equity (Deficit) - Stock Reserved for Future Issuance (Details) - shares
Dec. 31, 2024
Feb. 29, 2024
Dec. 31, 2023
Class of Stock [Line Items]      
Total shares of common stock reserved (in shares) 63,911,911   139,700,734
2017 Plan      
Class of Stock [Line Items]      
Total shares of common stock reserved (in shares) 0   7,919,000
2024 Plan      
Class of Stock [Line Items]      
Total shares of common stock reserved (in shares) 36,711,788 31,747,592 0
Community Impact Initiatives And Charitable Activities      
Class of Stock [Line Items]      
Total shares of common stock reserved (in shares) 1,337,205   1,337,205
Conversion of outstanding convertible preferred stock      
Class of Stock [Line Items]      
Total shares of common stock reserved (in shares) 0   73,021,449
Outstanding stock options      
Class of Stock [Line Items]      
Total shares of common stock reserved (in shares) 14,687,538   29,795,909
Outstanding RSUs      
Class of Stock [Line Items]      
Total shares of common stock reserved (in shares) 11,175,380   27,627,171
v3.25.0.1
Stock-Based Compensation - Narrative (Details) - USD ($)
$ / shares in Units, $ in Millions
1 Months Ended 12 Months Ended
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
RSUs granted (in shares)   5,410,810    
Stock option exercise price (in dollars per share) $ 17.83 $ 30.07 $ 17.83  
RSUs and RSAs outstanding (in shares) 26,886,533 11,344,247 26,886,533  
Weighted-average grant date fair value of awards granted during the period (in dollars per share)   $ 56.96 $ 26.71 $ 37.88
Fair value of awards vested in period   $ 766.8 $ 27.9 $ 33.4
Unrecognized stock-based compensation expense related to RSUs and RSAs   $ 292.2    
Stock options outstanding (in shares) 29,795,909 14,687,538 29,795,909  
Unrecognized stock-based compensation expense related to stock options   $ 111.9    
Intrinsic value of options exercised   887.3 $ 72.5 $ 43.6
Weighted average grant date fair value per share of options granted (in dollars per share)     $ 15.67 $ 27.52
Total grant date fair value of options vested   $ 34.8 $ 14.0 $ 21.9
Former Employee        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Aggregate purchase price of shares sold     $ 114.1  
2023 CEO/COO Equity Awards        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Stock options granted (in shares) 4,452,539      
Stock option exercise price (in dollars per share) $ 25.29   $ 25.29  
Minimum | Former Employee        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Purchase price of shares (in dollars per share) 25.00   25.00  
Maximum | Former Employee        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Purchase price of shares (in dollars per share) 31.50   31.50  
Share-Based Payment Arrangement, Tranche One | 2023 CEO/COO Equity Awards        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Stock option exercise price (in dollars per share) 45.00   45.00  
Share-Based Payment Arrangement, Tranche Two | 2023 CEO/COO Equity Awards        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Stock option exercise price (in dollars per share) 60.00   60.00  
Share-Based Payment Arrangement, Tranche Three | 2023 CEO/COO Equity Awards        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Stock option exercise price (in dollars per share) $ 90.00   $ 90.00  
Class A        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
RSUs and RSAs outstanding (in shares)   10,746,145    
Stock options outstanding (in shares)   11,501,771    
Class A | Former Employee        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Shares sold (in shares)     183,677  
Class A | Chief Executive Officer | 2023 CEO/COO Equity Awards        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Stock options granted (in shares) 4,485,766      
Class A | Chief Operating Officer | 2023 CEO/COO Equity Awards        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Stock options granted (in shares) 2,924,056      
Class B        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
RSUs and RSAs outstanding (in shares)   598,102    
Stock options outstanding (in shares)   3,185,767    
Class B | Former Employee        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Shares sold (in shares)     3,960,560  
Class B | Chief Executive Officer | 2023 CEO/COO Equity Awards        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Stock options granted (in shares) 1,495,256      
RSUs | Share-Based Payment Arrangement, Tranche One | 2023 CEO/COO Equity Awards        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Award vesting (as a percent) 50.00%      
RSUs | Share-Based Payment Arrangement, Tranche Two | 2023 CEO/COO Equity Awards        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Award vesting (as a percent) 50.00%      
Vesting period for stock-based compensation awards 5 years      
RSUs | Chief Executive Officer | 2023 CEO/COO Equity Awards        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
RSUs granted (in shares) 2,990,511      
RSUs | Class A | Chief Executive Officer | 2023 CEO/COO Equity Awards        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
RSUs granted (in shares) 1,495,255      
RSUs | Class A | Chief Operating Officer | 2023 CEO/COO Equity Awards        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
RSUs granted (in shares) 1,462,028      
RSUs | Class B | Chief Executive Officer | 2023 CEO/COO Equity Awards        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
RSUs granted (in shares) 1,495,256      
Stock options        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Expiration period of awards   10 years    
Unrecognized stock-based compensation expense, weighted-average period of recognition   3 years 11 months 12 days    
Stock options | 2023 CEO/COO Equity Awards        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Vesting period for stock-based compensation awards 5 years      
Contractual term of awards 10 years      
Stock options | Minimum        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Vesting period for stock-based compensation awards   4 years    
Stock options | Maximum        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Vesting period for stock-based compensation awards   5 years    
Stock options | Share-Based Payment Arrangement, Tranche One        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Award vesting (as a percent)   25.00%    
Vesting period for stock-based compensation awards   1 year    
Stock options | Share-Based Payment Arrangement, Tranche Two        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Vesting period for stock-based compensation awards   3 years    
RSUs and RSAs        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Unrecognized stock-based compensation expense, weighted-average period of recognition   1 year 4 months 28 days    
Service and Performance-based RSUs        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Vesting period for stock-based compensation awards   1 year    
Expiration period of awards   7 years    
Service and Performance-based RSUs | Minimum        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Requisite service period   3 years    
Service and Performance-based RSUs | Maximum        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Requisite service period   4 years    
Service- based RSUs        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
RSUs granted (in shares)   5,170,456    
Vesting period for stock-based compensation awards   1 year    
Expiration period of awards   7 years    
RSUs and RSAs outstanding (in shares) 25,406,057 11,077,884 25,406,057  
Service- based RSUs | Minimum        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Requisite service period   1 year    
Service- based RSUs | Maximum        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Requisite service period   3 years    
RSAs        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
RSUs granted (in shares)   153,648    
Vesting period for stock-based compensation awards   1 year    
Requisite service period   3 years    
RSUs and RSAs outstanding (in shares) 87,030 168,867 87,030  
v3.25.0.1
Stock-Based Compensation - RSUs and RSA Activity (Details) - $ / shares
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]      
Unvested, beginning balance (in shares) 26,886,533    
Granted (in shares) 5,410,810    
Vested (in shares) (19,176,682)    
Canceled/Forfeited (in shares) (1,776,414)    
Unvested, ending balance (in shares) 11,344,247 26,886,533  
Weighted- average grant date fair value      
Unvested, beginning balance (in dollars per share) $ 29.17    
Granted (in dollars per share) 56.96 $ 26.71 $ 37.88
Vested (in dollars per share) 31.80    
Canceled/Forfeited (in dollars per share) 31.15    
Unvested, ending balance (in dollars per share) $ 37.67 $ 29.17  
Service- based RSUs      
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]      
Unvested, beginning balance (in shares) 25,406,057    
Granted (in shares) 5,170,456    
Vested (in shares) (17,753,004)    
Canceled/Forfeited (in shares) (1,745,625)    
Unvested, ending balance (in shares) 11,077,884 25,406,057  
RSAs      
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]      
Unvested, beginning balance (in shares) 87,030    
Granted (in shares) 153,648    
Vested (in shares) (71,811)    
Canceled/Forfeited (in shares) 0    
Unvested, ending balance (in shares) 168,867 87,030  
Market and Performance- based RSUs      
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]      
Unvested, beginning balance (in shares) 1,393,446    
Granted (in shares) 86,706    
Vested (in shares) (1,351,867)    
Canceled/Forfeited (in shares) (30,789)    
Unvested, ending balance (in shares) 97,496 1,393,446  
v3.25.0.1
Stock-Based Compensation - Stock Option Activity (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Outstanding stock options    
Beginning balance (in shares) 29,795,909  
Exercised (in shares) (15,018,424)  
Canceled/Forfeited (in shares) (89,947)  
Ending balance (in shares) 14,687,538 29,795,909
Weighted- average exercise price    
Beginning balance (in dollars per share) $ 17.83  
Exercised (in dollars per share) 5.92  
Canceled/Forfeited (in dollars per share) 8.89  
Ending balance (in dollars per share) $ 30.07 $ 17.83
Stock Options Additional Disclosures    
Options vested (in shares) 7,495,598  
Options vested and expected to vest (in shares) 14,687,538  
Options vested, weighted-average exercise price (in dollars per share) $ 15.88  
Options vested and expected to vest, weighted-average exercise price (in dollars per share) $ 30.07  
Options outstanding, weighted-average remaining contractual life (years) 6 years 10 months 13 days 6 years
Options vested, weighted-average remaining contractual life (years) 4 years 10 months 17 days  
Options vested and expected to vest, weighted-average remaining contractual life (years) 6 years 10 months 13 days  
Options outstanding, aggregate intrinsic value $ 1,958,924 $ 500,472
Options vested, aggregate intrinsic value 1,106,061  
Options vested and expected to vest, aggregate intrinsic value $ 1,958,924  
v3.25.0.1
Stock-Based Compensation - Weighted Average Assumptions of Employee Stock Options (Details) - Stock options
12 Months Ended
Dec. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Expected term (in years) 6 years 3 months 21 days
Expected volatility 60.66%
Risk-free interest rate 3.83%
v3.25.0.1
Stock-Based Compensation - Components of Stock-Based Compensation Expense (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock-based compensation expense $ 801,646 $ 47,598 $ 55,310
Cost of revenue      
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock-based compensation expense 620 101 133
Research and development      
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock-based compensation expense 441,629 23,825 35,641
Sales and marketing      
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock-based compensation expense 80,436 5,555 7,576
General and administrative      
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock-based compensation expense $ 278,961 $ 18,117 $ 11,960
v3.25.0.1
Employee Benefit Plans (Details) - USD ($)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Defined Contribution Plan Disclosure [Line Items]      
Maximum participant annual compensation contribution (as a percent) 100.00%    
Matching contributions expense $ 11,500,000 $ 10,100,000 $ 8,700,000
Defined Contribution Plan, Tranche One      
Defined Contribution Plan Disclosure [Line Items]      
Maximum employer contribution match (as a percent) 100.00%    
Maximum employer contribution match $ 3,000    
Defined Contribution Plan, Tranche Two      
Defined Contribution Plan Disclosure [Line Items]      
Maximum employer contribution match (as a percent) 25.00%    
v3.25.0.1
Income Taxes - Geographical Breakdown of Income (Loss) before Income Taxes (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]      
Domestic income (loss) $ (493,371) $ (92,627) $ (162,330)
Foreign income (loss) 8,164 5,604 4,402
Income (loss) before income taxes $ (485,207) $ (87,023) $ (157,928)
v3.25.0.1
Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Current income tax expense (benefit):      
Federal $ (141) $ 1,290 $ 859
State 474 1,133 610
Foreign 851 1,468 1,231
Total current income tax expense (benefit) 1,184 3,891 2,700
Deferred income tax expense (benefit):      
Federal (237) 0 (1,767)
Foreign (1,878) (90) (311)
Total deferred income tax expense (benefit) (2,115) (90) (2,078)
Income tax expense (benefit) $ (931) $ 3,801 $ 622
v3.25.0.1
Income Taxes - Reconciliation of Effective Tax Rate From Statutory Federal Rate (Details)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]      
Statutory federal income tax rate 21.00% 21.00% 21.00%
State income taxes, net of federal benefit 5.30% 1.20% 2.30%
Non-deductible compensation (14.00%) 0.00% 0.00%
Stock-based compensation 44.40% 3.90% 0.60%
Research and development credits 14.60% 13.50% 14.10%
Change in valuation allowance (71.00%) (41.10%) (37.40%)
Other (0.20%) (2.90%) (1.00%)
Effective tax rate 0.10% (4.40%) (0.40%)
v3.25.0.1
Income Taxes - Components of Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Deferred tax assets:    
Net operating loss carryforwards $ 149,735 $ 56,938
Stock-based compensation 28,586 21,364
Lease liability 6,206 5,819
Capitalized research and development costs 268,232 98,267
Research and development credits 124,116 53,946
Other 13,351 4,216
Gross deferred tax assets 590,226 240,550
Valuation allowance (572,894) (228,001)
Total deferred tax assets, net of valuation allowance 17,332 12,549
Deferred tax liabilities:    
Right-of-use asset (5,436) (5,426)
Acquired intangibles (9,727) (6,895)
Total deferred tax liabilities (15,163) (12,321)
Net deferred tax assets (liabilities) $ 2,169 $ 228
v3.25.0.1
Income Taxes - Narrative (Details)
$ in Millions
Dec. 31, 2024
USD ($)
Federal Tax Jurisdiction  
Tax Credit Carryforward [Line Items]  
Operating loss carryforwards $ 590.4
Tax credit carryforwards 123.9
State Tax Jurisdiction  
Tax Credit Carryforward [Line Items]  
Operating loss carryforwards 399.9
Tax credit carryforwards $ 49.3
v3.25.0.1
Income Taxes - Gross Unrecognized Tax Benefits Rollforward (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Unrecognized Tax Benefits [Roll Forward]      
Beginning balance of unrecognized tax benefits $ 19,236 $ 16,428 $ 8,982
Increases related to prior year tax positions 1,444   1,925
(Decreases) related to prior year tax positions   (1,750)  
Increases related to current year tax positions 23,181 4,558 5,521
Ending balance of unrecognized tax benefits $ 43,861 $ 19,236 $ 16,428
v3.25.0.1
Related Parties and Related-Party Transactions (Details)
Dec. 31, 2024
director
observer
Advance Magazine Publishers Inc.  
Related Party Transaction [Line Items]  
Number of nominated directors 2
Number of nominated observers | observer 1
Number of directors on each board committee 1
Affirmative vote or written consent of counterparty required maximum ownership threshold 0.05
Affirmative vote or written consent of counterparty required maximum ownership percentage upon closing of the initial public offering 0.50
Percentage of shares owned by related party 0.075
Advance Magazine Publishers Inc. | Reddit, Inc.  
Related Party Transaction [Line Items]  
Percentage of ownership in Reddit 23.00%
v3.25.0.1
Segment and Geographic Information - Narrative (Details)
12 Months Ended
Dec. 31, 2024
segment
Segment Reporting [Abstract]  
Number of reportable segments 1
v3.25.0.1
Segment and Geographic Information - Schedule of Segment Net Income (Loss) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Revenue $ 1,300,205 $ 804,029 $ 666,701
Depreciation and amortization 15,643 13,702 8,000
Income tax expense (benefit) (931) 3,801 622
Net income (loss) (484,276) (90,824) (158,550)
Reportable Segment      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Revenue 1,300,205 804,029 666,701
Adjusted cost of revenue 122,975 110,758 103,952
Adjusted gross profit 1,177,230 693,271 562,749
Adjusted operating expenses 879,223 762,546 671,143
Stock-based compensation and related taxes 842,932 49,086 55,768
Depreciation and amortization 15,643 13,702 8,000
Interest (income) expense, net 78,121 53,281 15,681
Income tax expense (benefit) (931) 3,801 622
Other segment expenses (2,760) (8,241) (1,447)
Net income (loss) $ (484,276) $ (90,824) $ (158,550)
v3.25.0.1
Segment and Geographic Information - Schedule of Segment Net Income (Loss), Adjusted Cost of Revenue Reconciliation (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Cost of revenue $ 123,595 $ 111,011 $ 104,799
Depreciation and amortization 15,643 13,702 8,000
Reportable Segment      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Cost of revenue 123,595 111,011 104,799
Stock-based compensation and related taxes 842,932 49,086 55,768
Depreciation and amortization 15,643 13,702 8,000
Adjusted cost of revenue 122,975 110,758 103,952
Cost of revenue | Reportable Segment      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Stock-based compensation and related taxes 620 101 133
Depreciation and amortization $ 0 $ 152 $ 714
v3.25.0.1
Segment and Geographic Information - Schedule of Segment Net Income (Loss), Adjusted Operating Expenses Reconciliation (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Depreciation and amortization $ 15,643 $ 13,702 $ 8,000
Reportable Segment      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Operating expenses 1,737,178 833,179 734,064
Stock-based compensation and related taxes 842,932 49,086 55,768
Depreciation and amortization 15,643 13,702 8,000
Adjusted operating expenses 879,223 762,546 671,143
Operating expenses | Reportable Segment      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Stock-based compensation and related taxes 842,312 48,985 55,635
Depreciation and amortization 15,643 13,550 7,286
Restructuring costs $ 0 $ 8,098 $ 0