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If the market for initial public offerings recovers in the new year, one company that aims to go public early on is Reddit. An IPO will put the spotlight on the prospects for Reddit’s advertising business, which has fallen short of ambitious growth targets outlined by executives two years ago.

Reddit expects to finish this year with ad revenue up more than 20% to slightly over $800 million, two people familiar with the matter said. While that’s a faster growth rate than firms like Snap and Pinterest reported, Reddit had said two years ago it aimed to exceed $1 billion in ad revenue by 2023, up from around $350 million in 2021. Ad executives say one reason Reddit fell short was the weakness in the ad market starting early last year, when rising interest rates caused marketers to pull back.