Yes they did. And that is a really great exercise in thinking about what their profitability would be like if they were structured more like YouTube in terms of their server infrastructure.

But to the point of many other folks here, if you're all cloud you can really shrink fast if you need too. Lose a millions customers? No problem, just drop some machines. Any business that can price into the monthly customer fee the marginal monthly cost of AWS to support that customer, can keep their costs flat when their customer counts vary. Someone with dedicated hardware is still paying the bills for it, even when their customers leave.