hi everyone,
we wanted to share an update regarding our previous financial update. If you haven’t read that post yet, go check it out first.
in this post we want to respond to some common questions and suggestions, provide an update on what we’re planning to do next, and tell you how you can help.
the numbers
first off: an update on how numbers have changed since our update on Monday. we’ve seen a large increase in cohost plus subscriptions, exceeding our expectations significantly. these numbers are accurate as of yesterday, March 14th (stripe only updates every 24-48 hours):
| Category | As of March 14 | As of March 11 | Change |
|---|---|---|---|
| Active subscribers | 3,311 | 2,630 | +25.9% |
| Monthly Recurring Revenue (MRR) | $21,467.49 | $14,536.03 | +47.7% |
| Subscriber churn rate | 1.63% | 2.63% | -38% |
| Revenue per subscriber | $6.48 | $5.53 | +17.1% |
| Monthly active users (MAU) | 30,149 | 29,846 | +1% |
| MAU -> Subscriber conversion rate | 11% | 8.8% | +25% |
this is all, objectively, really great! it has been motivating over the last few days to see how much cohost means to a lot of y’all. even with this boost in MRR, we’re still operating at a loss of, on average, $17k per month, so we’ve got some other plans to help make that up.
the good news is the cash infusion from this recent subscriber wave (a bit over $20k after payment processing) combined with some funding offers we’ve received means we’re comfortable saying we’ve got at least six more months to make up that shortfall in one way or another.
more details follow! keep reading!
I'm trying to understand how in past updates all of the ideas like "get more users" or "rely on tipping/subscriptions specifically" were things staff said were not going to make them sustainable, but now we're supposed to believe that this will do it.
Staff have said getting more users just means eventually having to hire more people. We have one mod for tens of thousands of active users NOW. It'll also increase hosting costs.
Staff have talked about how Patreon isn't profitable even at its scale and how they have no reason to believe that tipping/subscriptions would be enough revenue to make them sustainable, just that it would help increase cash flow.
I don't see anything that actually changed here except that we're going to have the same repeat of "we can't make payroll in a few weeks" that we already had.
This last update was the SECOND time that they said "hey actually we're a few weeks away from being out of money" then miraculously got a ton of donations and took out more loans and kept going. Unless they have a very large new revenue idea, which none of their current ideas are, then we're going to be doing this again in six months.
No matter how they portray it as everything being fine, everything is not fine. At no point in the site's history has it been fine.
💜

