Of course a company should try to be profitable, but it's the job of the CEO and the board to make sure your business plan is reasonable and fits with the money you're raising. Many companies in Silicon Valley choke on oversized valuations and unreasonable expectations.
Reddit had revenues of $8.3M. That's not insignificant. Their initial fundraising round was $100k, they'd been bought out by a big company for $20M, and then spun back out with a target value of $240M. It's not like they had old investors calling them at midnight to complain, they were well set up to get off the startup (constant growth) treadmill and simply run the company.
Instead, they decided to raise money. Traditional online advertising efforts weren't effective for them, and they wanted to try some new expensive approaches. That's a decision by the board to more aggressively monetize the community rather than trim operating costs. It's a lot less expensive to run a company in Las Vegas, Austin, Seattle, Boston... evidently it was more important to stay in San Francisco.
They agree to take money on a $500M valuation. Ugh. If you're the CEO, that's just asking for an ulcer. After raising the money, the CEO tries to move the office to a city 10 miles south, in part for his own sanity, and the board shoots him down. Evidently, it is really important that Reddit officially be in the city of San Francisco. After that combination of extreme pressure to succeed and thorough emasculation, he quits.
Now, this would be reasonable if the board was simply setting the company up for their hand-picked Series B CEO, but the board has been unable to get a replacement in over 6 months, relying on a controversial "interim" CEO. (Why the "interim" title at all? At least pretend you like her.) What a mess. If Pao can turn this around, it will be a miracle, even if that means selling out to "shills and ideologues." It didn't have to be this way.
The lessons here are that sometimes cutting cost is a better thing than raising funds, and that just because an investor offers you money doesn't mean you have to take it.