I liked the analysis, but it's only for the core product and doesn't take into account any of the other potential revenue streams that can occur if you're the de-facto storage mechanism for people's photos. Photo books, xmas cards, individual prints, etc. Everpix was all about trying to innovate in the automatic curation of your photo stream, ie over the last year automatically create a stream of the highlights. If that worked well you can pretty easily imagine subscribing for a year-end photo book that gets mailed to you every year or any number of other photo-related products.

I don't know if that was the eventual goal of the founders, or if they really thought they could make the core product profitable. But maybe the core photo storage product was destined to be a loss leader to let them monetize a massive collection of photos.