In July 2021, Reddit made headlines by going public with an initial public offering (IPO) on the New York Stock Exchange (NYSE). The move was seen as a significant milestone for the social media platform, which has experienced explosive growth in recent years. Many industry experts attributed Reddit’s success to the strategies employed by the company’s leadership, including CEO Steve Huffman and CFO Drew Vollero. In this article, we will examine the role that Vollero and Reddit’s former CFO, Jenny Isaac, played in preparing the company for its IPO, and discuss how their efforts were reported in The New York Times.
Vollero’s Strategy for Reddit’s IPO
Drew Vollero joined Reddit as CFO in 2019, bringing with him a wealth of experience from his previous roles at Mattel and Snap Inc. From the outset, Vollero was tasked with preparing Reddit for an IPO, and he quickly set to work streamlining the company’s financial operations. In an interview with The New York Times, Vollero discussed how he worked closely with the company’s leadership to build a more robust financial infrastructure. This included implementing new accounting software, improving financial reporting processes, and establishing new financial controls.
One of Vollero’s key priorities was to ensure that Reddit was in compliance with the regulations governing public companies. To achieve this, he spent a significant amount of time working with external auditors to review Reddit’s financial statements and identify any areas of risk. Vollero also worked closely with Reddit’s legal team to ensure that the company’s disclosures were accurate and complete.
Another important part of Vollero’s strategy was to focus on profitability. As The New York Times reported, Vollero was keenly aware that investors would be looking for evidence that Reddit could generate sustainable revenue. To that end, he worked with Reddit’s sales team to develop new advertising products and revenue streams. Vollero also helped to establish partnerships with other companies, such as Snapchat, to expand Reddit’s reach and attract new users.
Jenny Isaac’s Role in Reddit’s IPO
Jenny Isaac served as Reddit’s CFO from 2017 to 2019, during which time she played a crucial role in preparing the company for its IPO. In an interview with The New York Times, Isaac discussed how she worked closely with Reddit’s leadership to ensure that the company’s financials were in order. This included developing a financial model that accurately reflected the company’s revenue and expenses, as well as identifying areas where the company could cut costs.
Isaac also played a key role in building relationships with potential investors. As she explained to The New York Times, she spent a lot of time traveling to meet with investors and building a rapport with them. This helped to build investor confidence in Reddit and demonstrate that the company was a good investment opportunity.
The New York Times’ Coverage of Reddit’s IPO
The New York Times has been closely following Reddit’s journey to becoming a public company, with several articles published on the topic in the lead-up to the IPO. One article, published in February 2021, explored the challenges that Reddit faced in preparing for an IPO. The article highlighted the fact that Reddit had experienced significant growth in recent years, but had struggled to turn that growth into sustainable revenue. The article also noted that Reddit had faced criticism over the years for its handling of controversial content on the platform.
Another article, published in July 2021, covered the news of Reddit’s IPO in detail. The article noted that the company had raised $1.3 billion in its IPO, valuing the company at $10 billion. The article also discussed the challenges that Reddit would face as a public company, including the need to maintain its user base and monetize its platform without alienating its users. The article also highlighted Vollero’s role in preparing Reddit for the IPO, noting his efforts to improve the company’s financial infrastructure and establish partnerships with other companies.
In addition to these articles, The New York Times has also covered Reddit’s ongoing challenges in the wake of the GameStop saga, in which users of the platform drove up the stock price of the video game retailer. The incident drew widespread attention to Reddit’s role in financial markets and sparked a debate about the power of individual investors to influence the stock market.
Reddit’s IPO was a major milestone for the social media platform, and the strategies employed by Vollero and Isaac played a key role in its success. Vollero’s focus on financial infrastructure and profitability helped to demonstrate to investors that Reddit was a strong investment opportunity. Isaac’s work in building relationships with potential investors helped to build investor confidence in the company. The coverage of Reddit’s IPO in The New York Times provided valuable insights into the challenges and opportunities that the company faced as it prepared to go public. As Reddit continues to navigate the challenges of being a public company, it will be interesting to see how the company’s leadership responds to evolving market trends and user expectations.