Replit CEO Amjad Masad signaled his intent to maintain the company's independence during a TechCrunch StrictlyVC event in San Francisco on Thursday night. Speaking at the sold-out industry gathering, Masad addressed growing speculation regarding whether the AI coding platform would follow rival Cursor into a major acquisition.
The conversation followed recent reports that Cursor is in talks to be acquired by SpaceX for $60 billion. While Masad did not rule out a future sale entirely, he argued that Replit's financial structure allows for a different path than its competitor.
According to techcrunch.com, Masad highlighted a significant difference in gross margins between the two firms. He noted that Cursor has been operating at negative 23% gross margins. In contrast, Masad argued Replit possesses the necessary economics to remain a standalone entity.
Rapid revenue growth
Replit has experienced a massive surge in scale over the last 18 months. The company grew from $2.8 million in total revenue for 2024 toward what Masad describes as a billion-dollar annual run rate.
Masad also shared metrics regarding customer loyalty, stating that the company's net revenue retention is reaching as high as 300%. This figure measures the expansion of spending among existing customers.
Beyond acquisition rumors, the discussion touched on Replit's legal friction with Apple. Masad expressed a willingness to take the tech giant to court over what he characterized as 'outright lies' in the App Store's battle with the Replit platform. The CEO also indicated the possibility of the company beginning to invest directly in its own customer base.
