this post was submitted on 28 Feb 2024
135 points (93.5% liked)

Reddit

13633 readers
1 users here now

founded 5 years ago
MODERATORS
norz@lemmy.ml
135
Wait. Why is Reddit losing so much money? (www.businessinsider.com)
submitted 9 months ago* (last edited 9 months ago) by spider@lemmy.nz to c/reddit@lemmy.ml
71 comments fedilink hide all child comments
 

Reddit kind of anticipates this critique in its investor docs, and argues that it didn't really start operating as a serious business until 2018 when it finally started "meaningful monetization efforts" — that is, trying to make money for real.

But that's still six years ago. What has Reddit been doing since then?

One big, obvious answer: It has been hiring a lot of engineers and spending a lot of money on their salaries...

...What am I missing? I asked Reddit comms for comment but they declined, citing the company's quiet period before the IPO.

Internet Archive capture

you are viewing a single comment's thread
view the rest of the comments
[–] agressivelyPassive@feddit.de 26 points 9 months ago (38 children)

They're spending over 400mio a year on RnD. I was downvoted for stating this somewhere else, but tech workers are drastically overpaid and tech companies are structurally incapable of allocating resources properly.

I'm 100% sure, that reddit has a bunch of technologies, frameworks, components, that were developed inhouse for no other reason than a bunch of engineers trying to reinvent the wheel for the 100th time.

[–] charonn0@startrek.website 10 points 9 months ago (1 children)

That's enough money to fund a rogue nuclear weapons program. So, I hereby start the rumor that reddit is developing weapons of mass destruction.

[–] dhork@lemmy.world 1 points 8 months ago

It's always been a weapon of mass distraction, though, and Redditors are poor spellers.

load more comments (36 replies)