They need to find a way to make an inherently unprofitable concept profitable
I’m sorry, not trying to argue but this is incorrect. It’s not inherently unprofitable, it’s chronically mismanaged. Reddit generated $485mm in revenue in 2021 and $670mm in 2022.
For a relatively feature-complete and mature website, development costs should be a small percentage of that (especially considering in hindsight that Reddit didn’t really ship anything of value. Avatars. 🤮).
You don’t have to be an MBA to see they’re blowing all their money on too many middle managers and too much expensive real estate.
They pissed away their best chance to develop a new revenue stream when they fired Chooter and ruined AMA. At that moment, a competent board would’ve reigned in spending. Not halted, just acknowledge that future growth just got stunted.
Fair comment, thanks. I guess I read too many articles recently, detailing their declining valuation and that their value was artificially inflated somewhat by bandwagoning investors - - but that’s not quite the same.
As you point out, it seems they’re just grossly inefficient with what are pretty large existing revenue streams (ads, reddit premium).
I’m sorry, not trying to argue but this is incorrect. It’s not inherently unprofitable, it’s chronically mismanaged. Reddit generated $485mm in revenue in 2021 and $670mm in 2022.
For a relatively feature-complete and mature website, development costs should be a small percentage of that (especially considering in hindsight that Reddit didn’t really ship anything of value. Avatars. 🤮).
You don’t have to be an MBA to see they’re blowing all their money on too many middle managers and too much expensive real estate.
They pissed away their best chance to develop a new revenue stream when they fired Chooter and ruined AMA. At that moment, a competent board would’ve reigned in spending. Not halted, just acknowledge that future growth just got stunted.
Fair comment, thanks. I guess I read too many articles recently, detailing their declining valuation and that their value was artificially inflated somewhat by bandwagoning investors - - but that’s not quite the same.
As you point out, it seems they’re just grossly inefficient with what are pretty large existing revenue streams (ads, reddit premium).