4 ms·
Even if we say 1M people pay $20/month, that's only $240M/year. That's not enough to continue to grow and support the free users sans-ads.
by imposterr 2y ago
Even if we say 1M people pay $20/month, that's only $240M/year. That's not enough to continue to grow and support the free users sans-ads.
- coder543 2y agoThere's a lot we don't know about Perplexity's costs, like the cost of supporting free users, the difference in usage between free and paying users, and whether these ads fully offset the cost of free users. From what I've seen, it's typical for startups at this stage to be generating minimal revenue. Perplexity has raised close to $1 billion, so they likely aren't under pressure to be profitable just yet. Bringing in tens of millions in revenue annually would actually be quite a strong start. It may sometimes seem like “no one pays for anything”, but clearly a lot of people are paying for Perplexity Pro. It’s their business, so they can run ads if they think that will help them grow, but it’s not because no one paid for the Pro tier.
- bandrami 2y agoWhy would they need to grow? If the revenues exceed the costs that's a viable business model right there.
- cess11 2y agoMaybe they have debt to pay off.