I would expect a service like this to have very high churn as people export a list and leave, so the actual recurring revenue is likely much, much lower.
40% of basic at $295 = $236k 40% of pro at $295 = $396k 20% of basic at $295 = $398k
Equals $1.03M. PER MONTH! With one staff (I think the zero staff is a stretch)
Overheads would be significant, but still, let's say they are 90%.
He is still earning $100k per month profit. Not a bad business...
In my experience, hosting is a lot more expensive than everyone thinks. That being said, choose a number - 40%, 60%, 90%.
I've never seen a business that generates THAT much revenue with such low overheads. Awesome business!
This guy's traffic would be considerably lower than ours I would think. Most of his resources are going to be going to the scanning effort. But that can run at a continuous rate around the clock, which is the most efficient way to utilize resources. And it doesn't need to be done completely quickly: it looks like he'd be fine completing a full scan in under a month. That shouldn't require particularly high-powered hardware.
So, I can't imagine this guy could possibly be spending more then $100k/month on hosting. Honestly I would be surprised if it was more than $10k. I was just trying to clear up what I saw as a misconception.