Sure, because we're hiring like crazy to build new things. As we said during our last earnings call, we intend to stay at break even as long as we can achieve extraordinary revenue growth and continue to deliver innovative new products.
The more relevant number for this comparison would be our gross margin — much we have to spend on things like bandwidth and servers to service our customers divided by the revenue those customers generate — which in Q3 2021 (our last reported quarter) was 78%. Which is… pretty good for a services business like ours.
I don't know the specifics of this customer, but I don't see anything that leads me to believe our margins would be out of the ordinary with them. There are a lot of scale economics in our business. In other words, we can definitely do things for less money because we service a lot of customers than any one customer could hope to do it on their own.
It's super nice that you're here and your transparency is appreciated, but don't waste time in people like GP. Just walk your way and don't mind the naysayers.
My two cents from a regular guy to a billionaire, :).
Noting they are operating at a slight loss, during a period where they want to drive growth, isn't "naysaying". The question is whether the current pricing is tied at all to the "operating at a slight loss". He replied to say it mostly wasn't.
Remember, for example, when Uber rides were really cheap?
You're right about that but in this case I think they have that covered. Bandwidth is not really that expensivea and they already have the network and scale effects on their favor; so, if anything, I believe their opex (per customer or w/e) will continue to go down.
The more relevant number for this comparison would be our gross margin — much we have to spend on things like bandwidth and servers to service our customers divided by the revenue those customers generate — which in Q3 2021 (our last reported quarter) was 78%. Which is… pretty good for a services business like ours.
I don't know the specifics of this customer, but I don't see anything that leads me to believe our margins would be out of the ordinary with them. There are a lot of scale economics in our business. In other words, we can definitely do things for less money because we service a lot of customers than any one customer could hope to do it on their own.