Reddit admits more moderator protests could hurt its business

Reddit’s failure to support third-party apps could potentially harm its business, according to its IPO filing.
The company acknowledged the threat of future user protests and the value of third-party Reddit apps.
On July 1, Reddit enacted API rule changes that resulted in many third-party Reddit apps closing.
Thousands of Reddit users protested by making the subreddits they moderate private, read-only, or engaging in other forms of protest.
While these activities have not historically had a material impact on Reddit’s business, similar actions in the future could adversely affect its business.
The company also said that bad publicity and media coverage, such as the kind that stemmed from the API protests, could be a risk to Reddit’s success.
The firm highlighted financial incentives associated with having good relationships with volunteer moderators.
Losing third-party tools could hurt Reddit’s business. Much of the momentum for last year’s protests came from users, including long-time Redditors, mods, and people with accessibility needs.