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That's deliberate. They chose to grow their user base instead and it worked. 2019 350 million users 2024 504 million users Investors invest into future f
by nabla9 2y ago
That's deliberate. They chose to grow their user base instead and it worked.
2019 350 million users
2024 504 million users
Investors invest into future free cash flow.
- diggan 2y ago> They chose to grow their user base instead and it worked "It worked" but for what? Usually the idea is to focus on user growth first, and then eventually turn a profit, but what difference does it make if you succeed with the first step if you haven't even thought about the second step, much less be able to succeed with it?
- nabla9 2y agoReddit can turn profitable at any point. The spend to grow. Sales and marketing $71 million, R&D $142 million. They could easily switch into 25% profit margin business if they stop investing into growth.
- diggan 2y agoSure, maybe for some months at max, until people notice they're being squeezed and leave en-masse. I'll believe the common "X can turn profitable at any point" once it's been demonstrated.
- kmac_ 2y agoEvery 16th living human is a Reddit user? I wonder how they count that.