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It's bewildering to me how a company can have $1B in revenue and not able to make file-syncing profitable.
by meritt 10y ago
It's bewildering to me how a company can have $1B in revenue and not able to make file-syncing profitable.
- brianwawok 10y agoI assume their two biggest expenses are employees and the free product. Drop employees and they are insta profitable, but innovation slows. Drop the free plan, and they lose the cheap marketing they have going on. What is the right play for them? Seems tough.
- pestaa 10y ago> Drop the free plan, and they lose the cheap marketing they have going on. Is it cheap though when combined with wages it's more than they make?
- pm90 10y agoWhy? Amazon made billions in revenue for years and only recently became profitable.
- meritt 10y agoAnd that was purely a tax-avoidance strategy. Top employees have always been compensated via stock instead of any form of profit sharing. Now that Amazon literally can't spend their money quickly enough, they're doing stock buybacks for the exact same reason: it's a technique to distribute dividends without causing a taxable event. We'll see when Dropbox files whether or not they are executing the same strategy. My guess is they are, since it's hard for me to believe you can't attain profitability on $1B in revenue for a file-syncing platform.
- bigtimeidiot 10y ago>"Why? Amazon made billions in revenue for years and only recently became profitable." Do you think the complexity of Amazon and Dropbox are even in the same universe? Disclaimer: I like both companies.