Sourcehut Q2 2019 financial report

Message ID
DKIM signature
Download raw message
                   Sourcehut Q2 2019 financial report

In summary, Sourcehut remains financially healthy, with an operating
monthly profit of about $1,364, but growth has slowed. Perpetual growth
is not a goal, and the service will remain healthy as long as growth
does not reverse. However, additional growth will allow us to meet
additional goals, and I hope that the continued development of features
and refining of the model, and the upcoming promotion of the alpha to
beta, will secure us this growth. Should we grow more money than we
need, the main goals for how to spend it remain the same:

- Investing in additional hardware and resources
- Marketing & outreach
- Raising my personal salary to more sustainable levels (I still work on
  the side to make up for it)
- Hiring additional employees

As income grows beyond the amount necessary to support the service
itself, I hope to reinvest the money into the community, supporting a
healthy and diverse free software ecosystem.

Thank you for your continued support. I'm looking forward to continuing
to serve you.

Disclaimer: this report is a summarized approximation of sourcehut's
financials, and is not used for tax purposes.

                            Revenue sources

Sourcehut receives revenue from paid user subscriptions. During Q2, we
processed 880 invoices. The invoices paid break down as:

    518     $2  (paid monthly)
    223     $5  (paid monthly)
    52      $10 (paid monthly)
    65      $2  (paid yearly)
    18      $5  (paid yearly)
    4       $10 (paid yearly)

The total gross revenue during this period was $5,645, which after
transaction fees comes out to $5,170. This is down from $9,275 gross
revenue in Q1, mainly from a noted reduction in yearly subscriptions
being paid. This can be credited to a reduction in new account signups.
In Q2, 976 users signed up for an account, down from Q1's 2,425
registrations. There was no difference, however, in the fraction of new
signups which have paid for their account: in both quarters this figure
was 17%.

At the time of writing, 929 of 9,445 users have paid for their account,
just under 10% of all accounts. The breakdown of active subscriptions

    187     $2 (paid monthly)
    79      $5 (paid monthly)
    18      $10 (paid monthly)
    468     $2 (paid yearly)
    126     $5 (paid yearly)
    51      $10 (paid yearly)

The monthly revenue from these subscriptions (with annual subscriptions
realized over 12 months) is approximately $2,573, after transaction
fees. This is a $338 increase in monthly revenue compared to Q1.

Sourcehut has $7,681 in the bank at the time of writing (2019-07-24).

Breakdown of Q2 expenses:

    $3,891.88   Travel expenses for Mercurial conference in Paris
    $1,920.00   Philadelphia datacenter lease (inc. network, power, etc)
    $  129.00   San Francisco datacenter lease (inc. network, power, etc)
    $  786.76   New server equipment (ppcle64)


    $1,500.00   Drew DeVault (CEO)
   +$  179.07   Employer taxes & processing fees

Going into Q2, our ongoing expenses have not changed from Q1:

    $529.85/mo  Payroll (w/taxes & fees)
    $640.00/mo  Philadelphia datacenter lease
    $129/qtr    San Francisco datacenter lease

Q2 expenses mostly align with expectations for this quarter, but there
were some unexpected expenses when travel problems came up on the way to
Paris. Additionally, the mainboard for the ppcle64 server was dead on
arrival and I'm having a hard time getting through to support - it may
end up being forsaken.

There are no out-of-the-ordinary expenses planned for Q3.
Reply to thread Export thread (mbox)