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Honestly, $600k/month for 300 knowledge workers is horrible revenue if growth and margin aren't on the right track. This is more like a "20-30 pretty decent co
by sk5t 7y ago
Honestly, $600k/month for 300 knowledge workers is horrible revenue if growth and margin aren't on the right track. This is more like a "20-30 pretty decent consultants in a second-tier American city" number.
- tempsy 7y agoI think they make more than that. A TC article last year projected $50M in 2019. It also said they were not profitable. Even then that doesn’t exactly cover salary and benefits for 300 employees in SF, let alone everything else.
- rtpg 7y agoWait, how does $50M not cover 300 employees? Is fully loaded cost of employees (I imagine most of those 300 are _not_ super high level engineers, but things like CS and admin) in SF really above $160k/employee?
- tempsy 7y agoSalary + benefits + bonus + stock. Health insurance is expensive. Don’t think many realize how much it costs employers. Then obviously rent is the other big expense. And cloud computing.
- rtpg 7y agoYeah I don't disagree that it's not nearly enough for 300 workers. I just think that they totally have a legitimate business model to make Real Money. And my whole calculus was based on just the first thousand patrons, but I think there's a very long tail here.