Run the Numbers Profits vs. Growth: What X, Deel & Clay Are Teaching Us
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Feb 8, 2025 Get ready to dive into the latest buzz in tech finance! Profits at X, previously known as Twitter, are soaring, but revenue growth seems to be lagging. Discover how Deel is shaking up the global employment scene with unmatched growth metrics and market strategies. Plus, there’s a deep dive into the valuation ups and downs in the data service sector, with Clay raising eyebrows as it navigates the challenges of product integration and customer loyalty. Tune in for a ringside view of the private tech market!
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X's Profit Paradox
- X (formerly Twitter) doubled profits to $1.25B in 2024, but revenue is half of its previous levels.
- Cost-cutting boosted short-term profits, but this strategy isn't sustainable.
X and XAI's Financial Ties
- XAI, valued at over $40 billion, might be subsidizing X due to shared executives and opaque financial flows.
- This raises concerns about X's actual profitability and highlights the issue of using EBITDA in private markets.
Deel's Rapid Growth
- Deel, a global employment platform, reached $800M in revenue with 70% YoY growth and profitability since 2023.
- While not typical SaaS revenue, Deel's marketplace model positions it for a potential IPO in 2026.