• UnderpantsWeevil@lemmy.world
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    8 months ago

    It’s not uncommon at all for growing companies to invest and otherwise use up any profit they generate so the balance sheet stays negative while the company keeps growing in value.

    That’s absolutely true. But what exactly has Reddit been expanding into? Its not like they’ve got AWS like Amazon or they’re rapidly expanding their infrastructure footprint like NextEra or some novel product like OpenAI.

    As far as I can tell, the company’s biggest primary expense is administrative overhead. Not exactly value-add.

    • AbidanYre@lemmy.world
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      8 months ago

      Given that CEO pay was like 30% of their budget last year, administrative overhead seems like a good guess

    • JohnEdwa@sopuli.xyz
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      8 months ago

      Not a clue, but they did go from having 230 employees back in 2017 to 400 in 2018, 700 in 2021 to finally over 2000 in 2023.
      So they have to be doing something. …right?