Theyre not trying to be profitable, theyre trying to grow and earn a high company valuation. I agree that they have not done well on that front either, relative to the size of their user base.
That is how they were operating, but with investors growing cold towards tech their old "Just secure another round of funding" they have leaned on has fallen short.
Nobody is going to take a chance on a company that hasn't managed to reach that kind of growth after nearly 20 years when safe investments like CDs are paying 5%+. Long gone is the low interest rate environment where investing in places like Reddit was the only hope you had of seeing returns. The world has changed significantly in the last year or so.
Today, Reddit is clamouring at anything to try and turn profitability around in order to keep the lights on. The runway only lasts so long.
