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> 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 tur
by 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.