this post was submitted on 12 Jul 2023
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[–] [email protected] 62 points 1 year ago (5 children)

What I want to know about these "unprofitable" tech companies is where all the money is going? Wikipedia, which is run entirely on donations, has an operating budget of ~$150 million. Reddit, Twitter, etc... make many times this amount and even with the greater number of employees and salaries it still sounds like some creative Hollywood accounting that they're unprofitable. It feels like a big chunk of money is just going to investors/C-classes so they can just say they're not actually making any money while the big players get their payday.

[–] [email protected] 55 points 1 year ago (1 children)

That was my reaction when I heard Spez whine about reddit not being profitable.

How much money did you waste on bullshit? If you'd just focused on running the damn platform I instead of reinventing it into the monstrosity it is now, how much better might you be doing?

[–] [email protected] 13 points 1 year ago (1 children)

That valuable and incredibly useful NFT tech ain't gonna develop itself! /s

[–] [email protected] 11 points 1 year ago (1 children)

Trend chasing like this always shows me what CEOs are just morons with no vision

[–] [email protected] 5 points 1 year ago (1 children)

It's a bit like the whole "infrastructure ain't sexy" argument. As the chief executive administrator, you're paid to "strategize", when sometimes, you just need to keep the engines running and the bills paid, but in today's society that's not praised. You need to capture people and investors' ADHD-span, make megalomanous plans that can't possibly ever come true or be some guy who fires everyone to attempt to grow profit margins.

[–] [email protected] 1 points 1 year ago

You need to capture people and investors’ ADHD-span

Are you sure it's more, not less attractive for people with actual ADHD?

[–] [email protected] 20 points 1 year ago (1 children)

What this number suggests to me is that Tumblr has revenue less than 20 million dollars. I figure:

  • about 100 employees
  • based in new York
  • average $100,000 salary
  • 10m annually in humans
  • 2-3m annually for office expenses
  • 20-30m annually for hosting

Some of these numbers can be up or down, but when I worked at a similar company in New York, we had operating expenses in the same range. (Coincidentally, we had revenue on the same range, and got sold off in a fire sale)

[–] [email protected] 2 points 1 year ago

$100k avg salary for a New York tech company? The lowest level employees there almost certainly make well above that. If we're talking avg salary it's probably at least $200k.

[–] [email protected] 14 points 1 year ago (1 children)

Hedgefund investors need to pay for their caviar and cocaine somehow 😶

[–] [email protected] 1 points 1 year ago

Can't they just depend on bootstraps from bailouts like they used to?

[–] [email protected] 12 points 1 year ago

Wikipedia Foundation actually spends more money giving grants to other projects/orgs than they spend on hosting costs, and that’s still like 20% of their budget!! It’s so crazy

[–] [email protected] 9 points 1 year ago

Really good point, and great reminder that I don't appreciate Wikipedia enough. They've been doing the same thing for 20+ years with no ads and only the occasional ask for money. And I think they know better than to try and make money or go public when all of their content is user-generated.