Feb 22, 2024

I recently read about the upcoming IPO of Reddit, where the company plans to allocate shares to its most active users, known as “redditors”. This move is seen as a way to build loyalty among its user base, but it also comes with potential risks. The plan is to reserve shares for 75,000 of its top users, giving them the opportunity to buy shares at the IPO price before the stock begins trading, a privilege that is typically reserved for large investors. The success of this strategy will depend on how the Reddit shares perform in the stock market after the IPO.

In other news, there were discussions about the challenges of forecasting revenue for SaaS companies, with a particular focus on the difficulties of revenue forecasting and the use of templates and tools to simplify the process. Additionally, there was a debate about the appropriate classification of customer success team expenses on a company’s profit and loss statement, with differing opinions on whether these expenses should be categorized as part of the cost of goods sold, operational expenses, or both.

Lastly, there was mention of an upcoming event in New York City hosted by Capchase and Abacum for SaaS finance leaders, where discussions on predictions for SaaS finance teams in 2024, important metrics and benchmarks, and successful fundraising and financing strategies will take place. These are all important topics that will have a significant impact on the financial sector in the coming years.

Stay Well!