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Did I miss something or do they not count the expenses for TwitPic?

If they only get $10,000 for 3,2 millions views it seems almost likely that they're losing money, not making it...

Edit: A quick calculation tells me the expenses are actually quite negligible. The picture is 174kb * 3,2m servings * $0.03/GB for amazon cloudfront traffic (which I think they're using) means it's only cost them 16 bucks.

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Also using data in the article, it says TwitPic gets between 3 and 4 million visitors overall per day. Accepting all of the same assumptions they use for Sheen's figures, that works out at about $10,000 per day.

At 70% profit margin, that's a business turning over $3.65M per annum, and profit / margin of just over $2.5M.

Which I've just realised matches neatly with the figures in paragraph 4.

"In early 2010, Everett and TwitPic announced a goal of three to four million dollars in revenue, with a target profit margin of a whopping 70%"

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