R&D, in this case, is probably all of the IT and software support to keep one of the worlds largest websites and apps online 24/7.
Gamerwookie on
For some reason I read d&d and clicked because I wanted to see how that was possible
iheartgme on
For a company like Reddit, that’s just cost of employing developers. Almost everything developers work on is considered r&d so they can stuff that line item
reviedox on
Spending half income to fuck up your UI for the fourth time
T3st0 on
Maybe they should have spent some of that money buying Apollo app or their devs.
It’s insane how amazing that app was vs the reddit one.
Wijnruit on
Damn, they should either invest more or stop investing at all
Winterspawn1 on
they should keep doing that, seems to work wonders for their stock price
exig on
Got in at under 40, how ya doin
Mnm0602 on
Reddit gets a lot of hate but as an investment I think it’s intriguing. High revenue growth, lots of great answers to questions that Google and now AI heavily uses, users come back repeatedly and it accomplishes something the video platforms don’t quite address in terms of community interest rather than pure influencer interest (so it’s used along with those platforms instead of being cannibalized).
I’ve seen some data that shows it’s very successful at converting ads to sales too. With all the active human interaction I’d have to think they could integrate AI better.
Skybury on
That’s a hell of a gross profit % !
Jaredlong on
R&D is often treated like a catch-all category for operational debt in accounting. If you create a budget for a project and then that project goes over budget you can classify that excess cost as “R&D”. It makes the debt look less bad to investors. “We didn’t blow the budget, we were investing in development!” As a tech-based company, Reddit is very likely doing research and development, but who knows what all is also getting dumped into that designation.
jhvanriper on
PE 190. Schwab equity rating of F. It has done well since the initial offering if you held it through from the beginning though.
theb0tman on
their stock based compensation numbers were pretty out of hand on the last ER call
Arkortect on
Just so when people complain why Reddit is US centric I can show them this.
Dr_Griller on
But not on the half-dead abortion victim that is called the search function.
![[OC] TIL: Reddit spends 40% revenue on R&D 👀](https://www.byteseu.com/wp-content/uploads/2025/08/30s58hx7b2if1.png "[OC] TIL: Reddit spends 40% revenue on R&D 👀")
15 Comments
R&D, in this case, is probably all of the IT and software support to keep one of the worlds largest websites and apps online 24/7.
For some reason I read d&d and clicked because I wanted to see how that was possible
For a company like Reddit, that’s just cost of employing developers. Almost everything developers work on is considered r&d so they can stuff that line item
Spending half income to fuck up your UI for the fourth time
Maybe they should have spent some of that money buying Apollo app or their devs.
It’s insane how amazing that app was vs the reddit one.
Damn, they should either invest more or stop investing at all
they should keep doing that, seems to work wonders for their stock price
Got in at under 40, how ya doin
Reddit gets a lot of hate but as an investment I think it’s intriguing. High revenue growth, lots of great answers to questions that Google and now AI heavily uses, users come back repeatedly and it accomplishes something the video platforms don’t quite address in terms of community interest rather than pure influencer interest (so it’s used along with those platforms instead of being cannibalized).
I’ve seen some data that shows it’s very successful at converting ads to sales too. With all the active human interaction I’d have to think they could integrate AI better.
That’s a hell of a gross profit % !
R&D is often treated like a catch-all category for operational debt in accounting. If you create a budget for a project and then that project goes over budget you can classify that excess cost as “R&D”. It makes the debt look less bad to investors. “We didn’t blow the budget, we were investing in development!” As a tech-based company, Reddit is very likely doing research and development, but who knows what all is also getting dumped into that designation.
PE 190. Schwab equity rating of F. It has done well since the initial offering if you held it through from the beginning though.
their stock based compensation numbers were pretty out of hand on the last ER call
Just so when people complain why Reddit is US centric I can show them this.
But not on the half-dead abortion victim that is called the search function.