I know very little about economy, but "you can't make up losses on volume" does not sound right. Let's say you have fixed costs F per year and you make a profit of P per user. Then as soon as numUsers * P >= F, you made up your losses on volume.
I believe the point of the quote is that they're making a loss per user
IOW, calling it I, net income per user, would have made the argument more clear.