Because of unprofitability? ARR and growth are very high, and margins are either good or can soon become good.
Is the claim that coding agents can't be profitable?
Is the claim that coding agents can't be profitable?
Their margins are negative and every increase in usage results in more cost. They have a whole leaderboard of people who pay $20 a month and then use $60,000 of compute.
If you tell me to click the link, I did, but backed out because I thought you'd actually be willing to break it down here instead. I could also ask Claude about it I guess.
$60K in a month was unusual (and possibly exaggerated); amounts in the $Ks were not. For which people would pay $200 on their Max plan.
Since that bonanza period Anthropic seem to have reined things in, largely through (obnoxiously tight) weekly consumption limits for their subscription plans.
It’s a strange feeling to be talking about this as if it were ancient history, when it was only a few months ago… strange times.
This is always the pitch for money-losing IPOs. Occasionally, it is true.