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Edit: I stand corrected, my math (below) is off by 10, I would delete this comment if I could, otherwise kindly ignore this comment. They need 10 million custo
by jollybean 5y ago
Edit: I stand corrected, my math (below) is off by 10, I would delete this comment if I could, otherwise kindly ignore this comment.
They need 10 million customers paying that to generate $1B in revenues - that doesn't include all of the other costs involved.
Assuming even good margins, they'd need 10's of millions of customers to get to $1B in earnings in a year.
And that's with rosy numbers around margins.
I don't think it adds up very well and this will only work as long as the 'hyperbubble valuation' period of lofty expecations and very low interest rates continue.
If there is a market correction, esp. due to higher interest rates ... then it won't look good. But until then, it could work.
- underwater 5y agoThat's $99 per month, not per year. 10 million customers would be $12B revenue a year.
- cdash 5y ago10 million customers is $12B revenue a year.