Oh, yes you're absolutely right. Growth didn't have to remain unsustainable... reducing costs on AWS seems like the right idea (and kudos for huge efforts there with spot instances, etc!)
My attempted point was just that during the lifetime of the company, growing the userbase was increasing burn rather than decreasing it. That's a normal VC-funded approach to things, and occasionally works dramatic wonders like Facebook. But in the case of Everpix, the negative operating margin helps explain why an exponentially growing, paying(!) userbase can still fall apart without additional funding.
Btw, I really appreciate you guys being willing to share all these numbers. Very brave, and extremely fascinating. Best of luck in your next endeavors!
Comments
Oh, yes you're absolutely right. Growth didn't have to remain unsustainable... reducing costs on AWS seems like the right idea (and kudos for huge efforts there with spot instances, etc!)
My attempted point was just that during the lifetime of the company, growing the userbase was increasing burn rather than decreasing it. That's a normal VC-funded approach to things, and occasionally works dramatic wonders like Facebook. But in the case of Everpix, the negative operating margin helps explain why an exponentially growing, paying(!) userbase can still fall apart without additional funding.
Btw, I really appreciate you guys being willing to share all these numbers. Very brave, and extremely fascinating. Best of luck in your next endeavors!