Echosight  Echosight
Twitter/X Header Photo
traskjd Profile image

@traskjd
Co-founder & CEO @raygunio. I believe in creating a future of abundance for all and love discussing software, innovation, AI, business, and the future šŸš€
Posts

66

12 increase

Impressions

257.8K

2144.0% increase

Likes

1.7K

559.1% increase

Followers

71

0.5% increase

Impressions

Followers

Engagement

Top Posts

Post Actions
Letā€™s look at whatā€™s really going on. Hereā€™s the data: - raised at 3b valuation in 2019 - raised at 7.5b valuation in 2021 In the last couple of days, Matt has acknowledged: - Automattics revenue is about 500m ARR (the DHH response) - There are liquidation preferences (the stock offer to try and retain staff from leaving). Hereā€™s the thing: we have to assume Wordpress has grown revenue from their 2021 round (though maybe have not). Thatā€™s a 15x multiple on TODAYS revenue, not what it was when they raised in 2021. Matt notes that @wpengine does about $450m in revenue. I still maintain this all stacks up to: Matt is likely needing to raise money, but canā€™t at a valuation that doesnā€™t materially weaken his ownership and/or control. Heā€™s fighting to try and get revenue from anywhere to avoid this. Even manufacturing BS to attack WPEngine. He may be under pressure from his investors to find revenue. I donā€™t know the specifics of ownership and control of Automattic, but he wouldnā€™t be the first founder to be fired from their own company. Even a successful company. I suspect thereā€™s some ego here too, as it sounds like WPEngine may make more from Wordpress than Automattic. Keep in mind Automattic owns other assets like tumblr, not just Wordpress hosting revenue. Weā€™re going to continue to see founders appearing to be batshit crazy, when the original sin was likely raising at an absurd multiple, and not seeing how that can really screw a business down the track.
Fascinating to see a corporate use a supply chain attack on users of another providers product. 2m active installs being quietly migrated. This whole Wordpress meltdown is insane to watch play out šŸ¤Æ
@ArleyM Iā€™m reminded of the Gates quote: ā€œthe problem with success is that it fools smart people into thinking they canā€™t loseā€.
@morganfrnchstgg Their last funding round at least was. Many many examples.
@ajcheema90 @dhh is right šŸ˜‰
@redneckleeusmc I looked at raising in 2021. Most folks wanted me to take 3-5x what I wanted or it wasnā€™t interesting to them. So we didnā€™t do it. Now we have competitors who are still years from growing into their 2021 valuations.
They raised some money from Bezos. That purchased the early sports cars. Was years and years back, and I think they tried to goad him into selling the stake back to them. But fundamentally: they havenā€™t. I think even the Bezos cash was to get to talk to him and say heā€™s an investor.
@strebel šŸ«” Well done!
@lkr @dhh Somebody ask what he thinks of Linus.
Looking forward to speaking to my vision of Wellington tonight at the Pipitea Marae. This is an opportunity to speak with an audience of Government, as well as local stakeholders and leaders. Looking forward to seeing some of you there! https://t.co/UErlEyC7Qs