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Reddit admits more moderator protests could hurt its business

, the famous social media company, has filed for an IPO. Its filing with the Securities and Exchange Commission (SEC) revealed some exciting details about its inner workings. One of the notable disclosures made by is regarding the threat of future user protests and the value of third-party apps.

Last year, made some API rule changes that resulted in many third-party apps closing. This move disturbed many users, who protested by making the subreddits they moderate private, read-only, and/or engaging in other forms of protest. Thousands of users participated, and the protests went on for weeks, causing to crash for three hours at the beginning. Although CEO Steve Huffman said the demonstrations had no significant revenue impact, in its SEC filing, the company acknowledged that another such protest could hurt its pockets.

The company also noted that bad publicity and media coverage, such as the kind that stemmed from the API protests, could risk 's success. Adverse publicity and moderators disrupting the regular operation of subreddits could hurt user growth and engagement goals. The filing highlights the financial incentives associated with having good relationships with volunteer moderators, noting that if enough mods decided to disrupt Reddit, the company's results of operations, financial condition, and prospects could be adversely affected.

Moreover, Reddit pointed to the value of third-party “tools” despite its API pricing killing off many of the most famous examples. Losing third-party tools could hurt Reddit's business, and the company acknowledged the importance of these tools in maintaining moderators. It noted that, as communities grow, it can become more and more challenging for communities to find qualified people willing to act as moderators. While Reddit provides tools to its communities, it recognizes the value of third-party apps in making Reddit more enjoyable and accessible.

Overall, the filing reflects Reddit's to user protests, bad publicity, and the value it places on third-party tools and moderators. The company hopes to address these issues as it goes public.

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