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Sure, because we're hiring like crazy to build new things. As we said during our last earnings call, we intend to stay at break even as long as we can achieve e

Sure, because we're hiring like crazy to build new things. As we said during our last earnings call, we intend to stay at break even as long as we can achieve extraordinary revenue growth and continue to deliver innovative new products. The more relevant number for this comparison would be our gross margin — much we have to spend on things like bandwidth and servers to service our customers divided by the revenue those customers generate — which in Q3 2021 (our last reported quarter) was 78%. Which is… pretty good for a services business like ours. I don't know the specifics of this customer, but I don't see anything that leads me to believe our margins would be out of the ordinary with them. There are a lot of scale economics in our business. In other words, we can definitely do things for less money because we service a lot of customers than any one customer could hope to do it on their own.

launchiterate 5y ago
I love HN and it’s always amazing to see the founders answer the questions themselves and most importantly care a lot about the product.
jimsimmons 5y ago
Do you see you offering more dynamic hosting in the future? Things like elastic databases, GPUs etc
moralestapia 5y ago
It's super nice that you're here and your transparency is appreciated, but don't waste time in people like GP. Just walk your way and don't mind the naysayers. My two cents from a regular guy to a billionaire, :).
- tyingq 5y ago
  >don't mind the naysayers Noting they are operating at a slight loss, during a period where they want to drive growth, isn't "naysaying". The question is whether the current pricing is tied at all to the "operating at a slight loss". He replied to say it mostly wasn't. Remember, for example, when Uber rides were really cheap?
  - moralestapia 5y ago
    You're right about that but in this case I think they have that covered. Bandwidth is not really that expensivea and they already have the network and scale effects on their favor; so, if anything, I believe their opex (per customer or w/e) will continue to go down.
indigodaddy 5y ago
Have anything in infrastructure/operations/Linux sysadmin type areas?

launchiterate 5y ago

I love HN and it’s always amazing to see the founders answer the questions themselves and most importantly care a lot about the product.

jimsimmons 5y ago

Do you see you offering more dynamic hosting in the future? Things like elastic databases, GPUs etc

moralestapia 5y ago

It's super nice that you're here and your transparency is appreciated, but don't waste time in people like GP. Just walk your way and don't mind the naysayers. My two cents from a regular guy to a billionaire, :).

tyingq 5y ago
>don't mind the naysayers Noting they are operating at a slight loss, during a period where they want to drive growth, isn't "naysaying". The question is whether the current pricing is tied at all to the "operating at a slight loss". He replied to say it mostly wasn't. Remember, for example, when Uber rides were really cheap?
- moralestapia 5y ago
  You're right about that but in this case I think they have that covered. Bandwidth is not really that expensivea and they already have the network and scale effects on their favor; so, if anything, I believe their opex (per customer or w/e) will continue to go down.

indigodaddy 5y ago

Have anything in infrastructure/operations/Linux sysadmin type areas?