November 11, 2020 by Drew DeVault

SourceHut Q3 2020 Financial report

In summary, SourceHut is financially healthy. Our revenue is still growing, and we are still profitable and becoming more so. However, growth has slowed significantly compared to Q2. In internal terms, Q3 has been characterized by an increased emphasis on planning, less visible development efforts, and a decreased emphasis in marketing — not to mention taking place during a series of global and national crises — some or all of which may provide an explanation. Regardless, this may not be indicative of a trend, and we have still experienced positive growth by all accounts.

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

Revenue sources

Sourcehut receives revenue from paid user subscriptions. During Q3, we processed 1,855 invoices. The invoices paid break down as:

1,007   $2  (paid monthly)
464     $5  (paid monthly)
155     $10 (paid monthly)
246     $2  (paid yearly)
57      $5  (paid yearly)
28      $10 (paid yearly)

The total gross revenue during Q3 was $16,134, which after transaction fees is $14,972. This is very similar to our Q2 revenue, and a 213% increase over Q2 2019.

In Q3, 1,850 new users registered for an account. Of these users, 199 are paid; 10.8%. These numbers are both somewhat lower than expected. Q2 saw 2,551 new registrations, and the usual conversion rate is 11.7%. It remains to be seen if this is a trend. As of November 11th, the breakdown is as follows:

  344   $2  (paid monthly)
  163   $5  (paid monthly)
   58   $10 (paid monthly)
1,054   $2  (paid yearly)
  337   $5  (paid yearly)
  132   $10 (paid yearly)

The monthly revenue from all subscriptions is, accounting for credit card fees and amortizing yearly payments, is $5,952. This is an increase of $408 in monthly revenue compared to Q2.

SourceHut has $13,858 in cash at the time of writing.


Breakdown of Q3 expenses:

$4660    Servers and equipment
$1950    Philadelphia datacenter lease (inc. network, power, etc)
$300     pygit2 sponsorship
$130     Domain name registration & renewals
$100     Regulatory fees
$96      musl libc sponsorship

Our main expense this quarter was for putting together a new server, sakuya1, which is our first second-generation VM hosting server. The costs fell within the expectations explained in the Q2 financial report. Presently this server is only used for, but its role will expand in the future.

We do not have any unusual expenses planned for Q4.