Tumblr Still Struggling to Be a Profitable BusinessIn a report, founder David Karp says the stakes for proving that Tumblr is a great business are 'as high as they've ever been.'
ByJason Fell•
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After nearly a year under Yahoo's massive corporate umbrella, it appears that popular blogging platformTumblris still struggling to find a profitable business model.
In Yahoo's first quarter earnings report, there once again wasno mention of revenue from Tumblr. The obvious issue is the lack of advertising revenue. To avoid turning off longtime users who've enjoyed Tumblr's ad-free experience, the site's ad sales team has focused instead on encouraging clients to create their own Tumblr blogs and share content in the form of native advertising. Problem is, these ads don't make Tumblr much money.
"The stakes are as high as they've ever been," Tumblr founder David Karp, 27, said in arecent interview withThe New York Times.
As theNew York Timesarticle points out, being acquired by a company of Yahoo's size has afforded Tumblr a little wiggle room in its quest for meaningful revenue. How much time it has left is unclear. Lee Brown, Tumblr's head of global advertising sales, declined to say how much revenue the site is making now compared to a year ago.
Related:Tumblr Gets a Security Upgrade
Last May,Yahoo acquired Tumblr for approximately $1.1 billionin cash. As part of the deal, Karp stayed on as chief executive and Tumblr operated as an independent unit within Yahoo.
尽管Tumblr的收入明显standstill, its user base is growing. Since the acquisition last year, Tumblr's audience has grown 22 percent, according to comScore metrics, and its network is made up of some 180 million blogs. And Tumblr's staff has more than doubled under Yahoo, growing to about 220 people,The New York Timessays.
Tumblr was founded in 2007. Here's a video of Karp from 2011, discussing how to scale a business:
Related:Yahoo Overpays Tumblr's David Karp By Another $81 Million
