this post was submitted on 09 Jun 2023
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Reddit

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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.

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[–] Kaiser@lemmy.world 3 points 1 year ago (2 children)

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

[–] godless@feddit.de 3 points 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 3 points 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.