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by diggan 670 days 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?

1 comments

Reddit 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.

Sure, 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.