[pcthrowaway]

So they took in an extra 200 million $ in revenue in 2022, great. Though that doesn't necessarily mean they'll continue to take in more revenue given that 2022 was the year lockdowns pretty much disappeared everywhere and I'm guessing Twitch's model benefits from people being stuck at home.

But let's ignore that, and say they'll keep making that 2.8 billion. Did they hire 1000 new employees between 2021 and 2022? Because if so, that probably means they're making less profit even with an additional 200 million $ in revenue. Assuming the fully loaded cost per employee is ~200K/year, which according to Levels is on the low end (their L4s make 209K, L5s and up make much more)

Couple that with investors now clamouring for returns, and from the business side you can see why reducing their cash out-flows is at least appealing.