(Bloomberg) -- Reddit Inc. posted a more than 20% rise in revenue in 2023 versus the year before, people familiar with the situation said, as it prepares for one of the US’s most anticipated potential initial public offerings.

The San Francisco-based social media company is telling potential investors it had more than $800 million in revenue last year, above the $666 million it saw in 2022, the people said, asking not to be identified as the information is private. 

Reddit has yet to achieve profitability for the full year, with adjusted earnings before interest, taxes, depreciation and amortization showing a loss of about $69 million, one of the people said. It achieved a profit in the fourth quarter, a different person said. The company has been advised to consider a valuation of at least $5 billion in an IPO, Bloomberg News has reported.

The company is moving ahead with its plans to go public more than two years after it first confidentially filed with the US Securities and Exchange Commission. Reddit’s listing is closely watched as a bellwether of an IPO market in the midst of a tentative rebound from a two-year dearth of first-time share sales. 

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Reddit and its advisers are expected to unveil their public IPO filing as soon as this month, the people said. That would keep it on track to begin marketing its New York Stock Exchange IPO as early as March.

About 16 banks, led by Morgan Stanley and Goldman Sachs Group Inc., are working on the IPO, the people said. JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc. are also among the banks on the deal, they said. 

Representatives for Reddit, Goldman Sachs, JPMorgan, Bank of America and Citigroup declined to comment, while a spokesperson for Morgan Stanley didn’t immediately respond to requests for comment.

The timing means Reddit could be among the first to lead a pack of sizable technology IPOs this quarter, which may include Microsoft Corp.-backed data security start up Rubrik Inc. and health-care payments company Waystar Technologies Inc. Both firms had considered IPOs last year and are now targeting as soon as this year, Bloomberg News has reported.

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Reddit, founded in 2005, had more than 70 million daily active unique visitors as of October, according to its website. It became an icon of the so-called meme-stock era after a forum on the site, WallStreetBets, jolted the stock market.

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