IN ADVERTISING ALONE IN ITS 2ND
QUARTER FOR MORE ON THIS WE'RE
JOINED BY GREG MARTIN
CO-FOUNDER OF RAINMAKER
SECURITIES THANKS SO MUCH FOR
JOINING US
TODAY, GREG. OK SO HOW BIG OF A
DEAL IS THIS IPO FOR READ IT AT
THIS POINT IN ITS HISTORY.
>> YOU KNOW IT'S FUNNY WHEN YOU
SAY THIS POINT IN ITS HISTORY
AND THANKS FOR HAVING ME AGAIN
BRAD GOOD TO SEE YOU. YOU KNOW
READ IT WAS FOUNDED,
YOU KNOW, ALMOST 16 YEARS AGO
OF THE 2 2005 THE KIND OF
CONSIDER ONE OF THE ORIGINAL
GANGSTERS OF SOCIAL MEDIA ALONG
WITH FACEBOOK TWITTER HAS
REALLY LIVED IN THE GRAY AREA
FOR MANY YEARS.
BUT IT'S IT'S KIND OF THRONES A
VERY USER-FRIENDLY IT'S A PLACE
WHERE PEOPLE
CAN COMMENT AND SHARE THEIR
OPPOSING TAX ANONYMOUSLY YOU
KNOW IF YOU THINK
OF FACEBOOK VERY HEAVY AMOUNT
OF DATA THAT PEOPLE ARE
EXPOSING ABOUT THEMSELVES WHERE
IT'S REDICK THIS
VERY ANONYMOUS AND SO IT'S KIND
OF
IT'S TIME. YOU KNOW, IT'S BUILT
A PRETTY MASSIVE FOLLOWING THE
PAST YEAR HAS BEEN A INCREDIBLY
YEAR FROM A BRAND
RECOGNITION THAT GROWTH YEAR
THEY THEY STARTED BUILDING
THEIR ADVERTISING PLATFORM TO
REALLY BECOME A COMMERCIAL
BUSINESS AND AS YOU SAID
THEY'RE NOW YOU KNOW SORT OF
DOING A 100 MILLION A QUARTER
OF REVENUE AND SO IT'S KIND OF
TIME FOR THE COMPANY TO TAKE
THE NEXT STEP IN ITS EVOLUTION
AND GO
PUBLIC AND YOU KNOW WE'VE SEEN
VERY SUCCESSFUL IPOS FROM
FACEBOOK TWITTER PINTEREST AND
SNAPPED A IN THE SOCIAL MEDIA
OR OR REENA AND YOU'RE RIGHT.
IT IS IS NEXT IN THAT LINE AND
SO I THINK IT'S TIME AND OF
COURSE, YOU KNOW EVEN DESPITE
WHAT YOU SAID TO LEAD OFF THE
PROGRAM IN TERMS OF WHERE THE
HOW THE
NOW SECT WAS DOWN YESTERDAY THE
MARKET IS STILL
PRETTY STRONG AND INTEREST
RATES ARE LOW AND I THINK THE
COMPANY WILL GARNER A VERY GOOD
VALUE IS
SO.
>> IT DOESN'T KIND OF DO AS
MUCH SERVICE TO THINK ABOUT
WHAT RED WOULD HAVE BEEN IF
GOOGLE HAD ACQUIRED THEM AS
ALEXIS OHANIAN HAS TALKED ABOUT
IN
THE PAST OF COURSE NOT WANTING
TO BECOME A GOOGLE EMPLOYEE AT
THAT POINT IN TIME
AT LEAST, BUT WHEN WE THINK
ABOUT THE GROWTH FOR READ IT
RIGHT NOW WHERE ARE THOSE
OPPORTUNITIES HOW DO YOU
BELIEVE THAT INVESTORS WILL
EVALUATE THEM AGAINST SOME OF
THE SAME METRICS THAT OTHER
SOCIAL MEDIA COMPANIES HAVE
COME TO REPORT ON WHETHER THAT
BE THE NUMBER OF ACTIVE USERS
OF THE AVERAGE REVENUE
PER USER AND I THINK FOR THEIR
ENTRY INTO THE PUBLIC MARKETS
WITH TO IMAGINE THAT MAY LOOK
LIKE ONCE WE
FINALLY GET EVEN MORE OF THE
TRANSPARENCY AROUND
SOME OF THE TYPICAL DISCLOSURES
THAT GO INTO THE NEXT ONE
>> YEAH, IT'S IT'S INTERESTING
BECAUSE THEY THEY CLEARLY A
LARGE ENOUGH USER BASE THAT
USER BASE IS GROWING THEIRS.
ENGAGE USERS THAT NUMBER OF
PAID SESSION THIS IS CONTINUING
TO GROW WHAT'S REALLY NEW ABOUT
THE BUSINESSES THAT FOCUS ON AN
ADVERTISING INFRASTRUCTURE.
AND SO NOW IT'S ABOUT
MONETIZATION OF THAT
USER BASE WHICH IS SUBSTANTIAL
IN THE OPPORTUNITY FOR
MONETIZATION A SUBSTANTIAL
AND WE YOU KNOW THERE'S A HUGE
INCREASE IN DIGITAL ADVERTISING
ADVERTISERS. INCREASINGLY
FLOCKING TO THE WEB SO THE
GREAT
REVENUE OPPORTUNITY OR READ IT
WHICH ULTIMATELY CAN BE VERY
PROFITABLE ALL OF THE OTHER
COMPANIES I MENTIONED THE BILL
VERY PROFITABLE
BUSINESSES AND AND THEY GREW
THE SAME WAY THEY GREW THEIR
USER BASE FIRST THEN THEY
INSTALLED A ADVERTISING IN FOR
STRUCTURE AND THEN EVENTUALLY
THAT ADVERTISING REVENUES TO
GET GROWTH SO THERE'S A GOOD
BUSINESS MODEL HERE. WHAT'S
INTERESTING
ABOUT RED THAT IS YOU KNOW
BECAUSE IT WAS LIVING IN A IN A
SORT OF A PLACE A SAFE PLACE
FOR USERS TO POST CONTACT TALK
ABOUT CONTENT. IT WAS KIND OF
UNCENSORED UNREGULATED. IT WILL
BE INTERESTING AS A PUBLIC
COMPANY WHETHER THAT DESTROYS
THE ABSENCE OF READ WHAT RIGHT
IT WAS. THIS COMPANY KIND
OF MORE WE'RE UNDER THE RADAR
NOW WILL BE PUBLIC IT WILL BE
YOU KNOW
VERY VISUAL. SO IT'LL BE
INTERESTING TO SEE IF THERE'S A
BACKLASH AND I THINK WE'RE
ALREADY SEEING YOU KNOW ON WALL
STREET BETS FOR EXAMPLE, SURE
OF YOU KNOW A LITTLE BIT OF A
BACKLASH OF PEOPLE TALKING
ABOUT POTENTIALLY YOU KNOW
MAKING IT A MEME STOCK IN THE
NEGATIVE SENSE. SO IT'LL BE A
REALLY INTERESTING IPO
TO WATCH.
>> WHICH PARTICULARLY EVEN AS
WE TRACK SHARES OF ROBINHOOD
WHICH MEANS DOCTORS
HAVE ALSO OR THE RED RETAIL
TRADERS HAVE TALKED ABOUT ALSO
MAKING A MEME STOCK EVEN PARTS
OF THEM GOING PUBLIC WE'VE BEEN
TRACKING. HOOD SHARES AS WELL
AND NOW PERFORMING PARTICULARLY
WELL SO I GUESS THAT KIND OF
ANSWERS
THE RECEPTION. HEADWIND THAT
THEY MAY FACE READ IT MAY FACE,
BUT JUST
LASTLY WE HAVE GOT TO ASK READ
IT WAS THE PLACE WHERE THE MEME
STOCKS REALLY TOOK OFF IS THAT
GOING TO HAVE ANY IMPACT AS IT
MOVES FORWARD AS A PUBLIC
COMPANY.
>> YEAH I AS A PUBLIC COMPANY
THEY WILL BE
REGULATED MORE CLOSELY AND
WATCH MORE CLOSELY AND SO IT'LL
BE INTERESTING TO SEE WHETHER
THEY STILL ARE ABLE TO GENERATE
THE SAME KIND OF
GROUNDSWELL OF OF SORT OF
ANONYMOUS POSTING THAT MOVES
THINGS I MEAN THERE'S A THERE'S
A LOT OF PLAY THAT HAPPENS ON
READ IT THAT MAY BE A LITTLE
MORE CHALLENGING AS A PUBLIC
COMPANY AND AS YOU SAID THE
REALLY INTERESTING THING TO
WATCH IS HOW REDDIT ZONES
SUBREDDITS AND OWN
MEME STOCK CULTURE AND ACTUALLY
IMPACTS ITS OWN STOCK JUST LIKE
ROBIN HOOD WENT THROUGH SO IT'S