How do you address the concerns of users who feel that Reddit has become increasingly profit-driven and less focused on community engagement?

We’ll continue to be profit-driven until profits arrive. Unlike some of the 3P apps, we are not profitable.

  • jon@lemmy.tf
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    1 year ago

    IPO’ing an unprofitable company in the current economy is a pretty ballsy move. More power to them I guess…

  • arcrust@lemmy.ml
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    1 year ago

    There were 3 things going for Reddit, content wise: memes, news, hobby subs. It was a 50/50 if my Google search included reddit or Wikipedia. If reddit threw up a banner every 6 months and asked for a donation, I’d gladly throw 20 bucks their way. Reddit should have been a non-profit.

    Going public was the absolute worse decision they ever made.

    • animist@lemmy.one
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      1 year ago

      These are the steps the current admins are following:

      • get VC investors for public IPO
      • go public
      • watch stock price go up initially
      • cash out and move to a country with no extradition treaty with the US
      • laugh ass off and wipe ass with $100 bills
    • Kaiser@lemmy.world
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      1 year ago

      Agreed, I don’t know why Reddit is pushing to go public. Personally I don’t see the value in a business that admits that they aren’t profitable, but that raises the question if they aren’t making money how as Reddit operated for so long? The upside to them going public is that they’ll have to start publishing financial statements and we’ll get to just how much money the “unprofitable” business is making.

      • fire@lemmy.world
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        1 year ago

        I think it’s probably being pushed by the people who invested in Reddit to make it go public so they can sell shares / cash out. But this is just my opinion

  • EtherBalls@lemmy.world
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    1 year ago

    It’s insane to me that a site with as much activity and engagement as Reddit is allegedly “not profitable”. He’s either flat-out lying or they have mismanaged the site to a legendary degree.

    Either way, it’s pretty pathetic.

    • MayorMcCheese@lemmy.ml
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      1 year ago

      This seems typical for dot com/social/next best thing. They grow at all cost in angel funding. Then cash out.

  • DrQuint@lemmy.ml
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    1 year ago

    Of course they’re not profitable.

    Most growing tech companies aren’t, because most geowing tech companies will take their revenue and immediately reinvest it back into more growth, as they know growth attracts further VC investments, which will actually cover paychecks in the meantime. This is exactly how the world of tech works nowadays.

    Being profitable or not is meaningless if you’re talking about a company exploding in revenue.

    • Landrin201@lemmy.ml
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      1 year ago

      If reddit “isn’t profitable” why is spez worth over $10 million? That’s not money you just stumble into having, and if your company “isn’t profitable” wouldn’t you not be making enough to be worth $10 million after only a decade? Wouldn’t your money be going into keeping the lights on and not enriching yourself?

      • godless@feddit.de
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        1 year ago

        *billion

        And profitability is not the same as generating revenue.

        You can earn $200M a quarter and still have expenses of $220M, meaning you’re making a net loss.

        That’s why companies focus on exponential growth first and don’t really care about portability, but once the userbase is large enough, they will try to monetize it. Either through ads, or paid subscriptions, premium plans, special avatars, etc.

        That will surely piss of some of the early adopters, but usually isn’t significant enough to make an actual dent.

        The last step (which we have also seen) is then kicking out staff. That has two effects:

        1., It brings down the overhead (= salaries and attached taxes & social security) 2. The revenue per capita is inflated, i.e. it looks as if every employee is generating 4000 bucks instead of 2500 (random example), which is something that looks good in an IPO prospectus.

        • Kaiser@lemmy.world
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          1 year ago

          Thank you for the explanation, I’m having a hard time understanding how an “unprofitable” business has managed to stay afloat this long.

          • planet_barf@beehaw.org
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            1 year ago

            Investors will give cash in exchange for equity in the company. The cash is used to fund whatever expenses aren’t covered by revenue. Those investors are going to expect profitability to come eventually. Sometimes the business winds up doing some stuff that damages their product in order to achieve profitability.

          • godless@feddit.de
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            1 year ago

            Through investors, who consider the revenue a good indication for future profits. So they float the bill and receive shares in the company instead, and cash out during the IPO.

      • planet_barf@beehaw.org
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        1 year ago

        A company that isn’t profitable will still compensate their CEO, so spez is certainly taking gone a big paycheck. In addition, these net worth calculations also take into account stock. Spez most likely still owns a piece of Reddit, and that would be a factor.

        You can still get very rich off of a company that isn’t profitable.

  • CletusVanDamme@kbin.social
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    1 year ago

    All spez wants it to keep things going until the IPO where he gets paid big. He’s doing these changes to appeal to IPO purchasers and “maximize” the value.

    • Korgen@lemmy.korgen.xyz
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      1 year ago

      He just publicly admitted Reddit is not profitable and he’s mad that third party apps are. That IPO is not going to go well lol.

      • dogmuffins@lemmy.ml
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        1 year ago

        They would have to show their books as part of an IPO anyway, and everyone already knows its not profitable. It’s not like he accidentally dropped a big secret here.

  • SmugBedBug@sh.itjust.works
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    1 year ago

    We’ll continue to be profit-driven until profits arrive. Unlike some of the 3P apps, we are not profitable.

    Maybe fix your product before you expect the money to come pouring in.

    • saba@lemmy.ml
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      1 year ago

      wal-mart is profitable and they at least pay workers minimum wage. u/spaz can’t make a profit when unpaid mods do most of the work for them. Not a very good CEO

  • darkkite@lemmy.ml
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    1 year ago

    they fumbled so hard. they could have had millions of new subscribers if they locked the api key under reddit premium and allowed 3rd party app to enter user api keys

    50 a year isn’t terrible depending on your use case, but they burned so much good will

    • bitsplease@lemmy.ml
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      1 year ago

      Yup, Spez claims that $2/user/month is all they’re asking. I’d have happily paid that direct to reddit if they’d been upfront from the get-go. Instead, I’ve deleted my account and left the site after a decade of contributions. Very sad to see it go, but I’m not going to be like those idiots whose still hanging around on twitter constantly complaining about the way it’s managed

    • BreadDog@kbin.social
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      1 year ago

      There are so many ways they could have made it viable. Like comically easy. But that was never what they were interested in. The thing that they aren’t willing to just come out and say, is that their own app is built to generate advertising revenue. They have absolutely zero interest in fostering a 3rd party community, and the only concessions they are going to make are for things that actually have a chance at saving the spending money (i.e. make sure the free labor they get from moderators stays and make sure other people deal with questions like accessibility).

      • Showervagina@lemmy.ml
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        1 year ago

        Can’t shake the feeling it’ll be a pump & dump. It would be truly poetic for Reddit to be pumped up with bot content, IPO, then dumped.