Amjad Masad has been building Replit for a decade, but the last 18 months have been something else entirely. The AI coding assistant company went from $2.8 million in revenue in all of 2024 to tracking toward what Masad describes as a billion-dollar annual run rate.
At TechCrunch’s sold-out StrictlyVC event in San Francisco on Thursday night, we covered a lot of ground in a short time, beginning with the question everyone in the industry is asking right now: in a world where rival Cursor is reportedly in talks to be acquired by SpaceX for $60 billion, is Replit also bound to sell? We also got into Replit’s net revenue retention — a measure of how much existing customers expand their spending — which Masad says is reaching as high as 300%, his willingness to take Apple to court over what he called outright lies in its App Store battle with Replit, and the possibility of the company beginning to invest in its own customers.
On the question of independence, Masad was unambiguous. Unlike Cursor, which he said has been operating at negative 23% gross margins, he argued Replit has the economics to make that path viable — even if he stopped short of ruling out a sale entirely.
The following has been edited for length and clarity:
TC: Cursor’s reported SpaceX deal was the talk of the industry last week. What did you make of it?
AM: It’s kind of hard being an independent, smaller AI company that’s building on foundation models, especially if you’re burning a ton of cash. Part of the reporting suggested Cursor has negative 23% margins, and if you’re also wanting to invest in training models, that makes it incredibly hard to stay independent.
For us at Replit, partly because we target a different customer set, we’ve been able to run the business more rationally. We’ve been gross margin positive for over a year. We’re slightly more expensive, but we provide a lot more. Our audience tends to be mostly non-technical users who previously haven’t been able to create any software. We provide an end-to-end platform — from the prompt all the way to a deployed application that can scale. We handle security, databases, database migration. And we’ve been doing this long enough that we’ve built a lot of those primitives into the platform.
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Is Replit for sale? I would assume you are talking with potential acquirers all the time; it’s your fiduciary responsibility.
Yeah. We have amazing partners, and they sometimes bring up these topics. But we’re going to try to stay independent. I would love for us to remain an independent company. We’ve been around for 10 years, before it was even accepted that you could make apps just from ideas. We were talking about creating a billion software creators back in 2018 at YC, and people sometimes actually laughed at that dream. Now that dream is possible, and we kicked off this revolution with our agentic coding experience in September 2024. It just feels like we can take it much further.
You work closely with Anthropic, Google, and OpenAI. If you had to rank them — who’s doing it best?
Anthropic is still undefeated on the core agentic loop. They have the best tool calling; the agent can stay coherent much longer. GPT-5 is catching up quickly. Google’s Flash family of models is just amazing on price-performance. If you want something fast and cheap, they’re actually beating open source right now. We use all three, and honestly I wouldn’t discount the newer labs either. Reflection AI is coming out with open-source models we’re hearing great things about. And the Chinese models are impressive — Kimi is as good as an Anthropic-generation model from January, so it’s only about three months behind.
When you’re in a bake-off for an enterprise deal, what wins it for you?
Most of our sales are inbound or organic — very product-led. We’ve acquired customers like Zillow and Meta purely through people adopting the product and then raising their hand to buy an enterprise plan. When it does go top-down and there’s a formal bake-off, we usually win on product. But even in cases where we might be missing a feature, once it hits the C-suite and the IT group, Replit wins on security. A lot of vibe-coding tools will generate a website and connect it to an external database — great products, but it makes security much harder, because the database is open to the public and you need to configure row-level security, which is especially difficult for non-technical builders. Replit being full stack, with the database built into the project and not open to the public — that makes the app inherently more secure.
We also spent 10 years battling crypto scammers and hackers, so our cybersecurity function is as good as a dedicated cybersecurity startup. Every time you deploy an app on Replit, we create an entirely new isolated project on Google Cloud. We inherit Google’s security model.
Can we talk about churn? How long do you hold onto customers if the best prototypes eventually get rebuilt into a company’s existing stack?
Churn is very, very low, and net retention is incredibly high — 300% in some cases. What we actually hear from customers is that when engineers get nervous and try to rebuild an app into their own stack, they often make it worse. Once enterprises get comfortable with the full Replit stack — especially when we set up a single-tenant environment for them — they keep the apps on Replit. Bain & Company, for example, replaced Tableau and Power BI with Replit and Databricks.
There’s a growing concern about AI bloat — non-technical users generate far more code and burn through far more tokens. That’s good for you [given your usage-based fees]. What about your customers?
We don’t have a lot of regrettable spend. Enterprises are very ROI conscious, and they tell us about the returns they’re getting. For the most part they feel the investment is totally worth it — often one, two, three orders of magnitude. If they spend $100,000 a month with Replit, they’re usually generating $2 million, $3 million, $10 million in some kind of return.
Let’s talk about Apple. Another rival, Lovable, just got an app-building app approved by the App Store this week. Replit has been in App Store purgatory, with Apple blocking your updates for months. How much does that hurt you?
It’s not life or death — we could lose the app and it wouldn’t do anything meaningful to our business. But it’s an app people genuinely love. We’ve been on the App Store for four years. Kids in underprivileged communities learn to code on Replit on their Android devices. Executives use it in meetings.
The reason Replit got blocked when others weren’t, we believe, is that Replit makes iOS apps. When we launched that capability in December, there were charts going around showing how many apps were getting into the App Store through us. We think Apple feels threatened by that.
Apple’s stated reason is that you’re downloading new code to the device [after the approval process], which violates their guidelines.
That’s a lie. And we can prove it in court if we have to.
Is that going to happen?
I hope not. I’m a fan of Apple, and I’d love to collaborate and build something great together. We’re happy to send customers to Xcode [Apple’s own development environment]. But you can’t run a marketplace that a billion people have access to and make decisions that are discriminatory or based on whims.
Just wondering if, like Nvidia, OpenAI and others, you’re thinking about investing in your own customers in exchange for equity.
We’ve thought a lot about it, and it is a consideration. I’ve personally invested in a few startups that started on Replit before they made any money. Some of them, like Magic School — a teacher decided to take his time during COVID to learn a little bit of vibe coding and built an AI app for other teachers. He found this problem that in America, we burn out a lot of teachers. He wanted to use AI to reduce the workload. He did that, and he made $20 million in the first year. Other companies that started on Replit, I think, are valued at half a billion dollars. The entrepreneurship happening on Replit right now is genuinely exciting. We integrated with Stripe a few months ago, and the transactions flowing through Replit are growing triple digits month over month. Pretty soon, our customers will be making more revenue than we are.
You can watch our full conversation with Masad below:
Former Deputy National Publicity Secretary of the All Progressives Congress (APC), Timi Frank, has called on President Bola Ahmed Tinubu to withdraw from the 2027 presidential election following the protest that greeted him at a mosque in Abuja.
Frank said the incident at the Shehu Shagari Central Mosque in Area 1, Garki, Abuja, should serve as a warning to the President about the level of dissatisfaction among some Nigerians over his administration.
He urged Tinubu to reconsider his second-term ambition rather than proceed with the election despite what he described as growing public opposition to his government.
The former APC chieftain also advised the President to ensure that the 2027 general election is free, fair and credible, insisting that Nigerians should be allowed to determine who leads the country through their votes.
Videos from the incident showed some individuals booing the President and chanting “Ba ma yi”, a Hausa expression meaning “we don’t want you”, as his convoy prepared to leave the premises.
Crowd Shouts ‘Bamayi’ at Tinubu, Throws Stones at His Convoy in Abuja
The protest attracted attention after footage circulated on social media.
There were also reports of individuals removing and destroying campaign posters and billboards bearing Tinubu’s image in parts of the Area 1 neighbourhood.
Nonetheless, while condemning the decision to express political grievances during a religious gathering, Frank acknowledged the efforts of the President’s security team in protecting him and preventing the situation from escalating.
However, he maintained that the reaction from some worshippers should not be ignored or dismissed as an isolated incident.
According to him, the President needs to understand the political situation in the country and pay attention to the feelings of ordinary Nigerians rather than depend entirely on assurances from political associates.
“The rejection was total and unmistakable. No Nigerian president has been embarrassed like this publicly. The way Nigerians rejected him speaks volumes. But should he decide to go ahead and he loses, he should be prepared to accept defeat just like former President Goodluck Jonathan did,” Frank said.
He further questioned the level of support Tinubu reportedly enjoys in the Federal Capital Territory, arguing that the incident at the mosque raised questions about claims made by some political figures concerning the President’s popularity in Abuja.
Frank suggested that there was a difference between the assurances political associates gave Tinubu and the political realities outside government circles.
He warned that some individuals around the President might be giving him an inaccurate picture of public opinion because of their personal interests.
“I am giving him this advice because I genuinely want him to listen to the truth. Those around him may not be telling him that he has become very unpopular and that continuing in the presidential race may be a difficult undertaking,” he said.
The former APC spokesman maintained that Tinubu should seriously consider stepping aside from the 2027 contest instead of allowing political pressure from his associates to determine his decision.
Frank also questioned the confidence expressed by some political leaders about their ability to deliver substantial votes for the President in the next election.
Nyesom Wike
He specifically mentioned FCT Minister Nyesom Wike and Edo State Governor Monday Okpebholo, questioning whether the electoral figures reportedly promised by political allies would reflect the actual choices of voters.
He argued that promises to secure 80 per cent of the votes in Abuja and 2.5 million votes in Edo State should not be taken as a guarantee of electoral victory.
According to him, political leaders should understand that making promises on behalf of voters is different from securing their support at the polling units.
Frank also referred to reactions witnessed in Abuja and Jos following political activities involving the ruling party.
He argued that such developments should encourage Tinubu to reassess the level of support his administration commands.
He further alleged that some individuals within the APC and the President’s political circle were more concerned about personal financial benefits than providing honest assessments of the government’s performance.
The former party official also brought opposition figures, including former Vice-President Atiku Abubakar and former Anambra State Governor Peter Obi, into the discussion.
He claimed that the reception given to the opposition leaders during their public appearances showed that Nigerians were increasingly interested in alternative political options ahead of the next general election.
Frank argued that the crowds received by the opposition figures were an indication that political support could not always be measured through organised rallies and the number of people mobilised by political parties.
“Wherever these opposition leaders go, Nigerians come out in large numbers to receive them without being induced with rice or money. Their reception should tell the President something about the mood of the country,” he said.
He maintained that the Tinubu administration should take public reactions seriously, particularly as political activities ahead of the 2027 elections continue to gather momentum.
Frank also linked the dissatisfaction he alleged to the economic difficulties confronting Nigerians.
He mentioned rising food prices, hunger, unemployment, insecurity and the increasing cost of living as some of the challenges affecting households across the country.
According to him, the difficulties experienced by ordinary citizens have contributed to the criticism directed at the Federal Government.
He argued that the administration needed to pay greater attention to the economic situation and the concerns of Nigerians instead of relying on political endorsements as evidence of public acceptance.
“If the President had performed well, there would be no need for the desperation we are witnessing today,” he said.
Frank also questioned the sincerity of some political endorsements received by Tinubu, alleging that certain expressions of support were driven by expectations of financial rewards and personal benefits.
He urged the President to identify those genuinely interested in the country’s progress and distinguish them from individuals whose political positions were influenced by their personal interests.
File: Election in Nigeria
Beyond his criticism of the administration, Frank warned against any attempt to manipulate the 2027 general election or undermine the wishes of voters.
He insisted that the credibility of the election would be more important than the political ambitions of any individual or party.
“Nigerians will not accept a situation in which someone is declared the winner when the people know they did not vote for him. They should not push the country into a crisis by attempting to impose him on the people,” he warned.
He called on Tinubu to respect the democratic process and ensure that the electoral authorities are allowed to conduct an election in which every vote counts.
The former APC spokesman further argued that the President could still secure a positive place in Nigeria’s political history if he chose to put the country’s democratic interests above his personal ambition.
“President Tinubu still has an opportunity to make history and have his name written in gold. He can achieve this by ensuring that the country conducts a free, fair and credible election,” he said.
Frank maintained that a transparent electoral process would allow Nigerians to freely choose their preferred candidate without intimidation, manipulation or interference.
He also stressed that the next presidential election should not become a source of political instability, warning that attempts to impose a candidate against the wishes of voters could generate serious consequences for the country.
Former President Olusegun Obasanjo has told Nigerian youths not to allow politicians to use them to cause division in the country.
Obasanjo gave the advice on Saturday shortly after he was honoured with an honorary doctorate degree by Skyline University of Nigeria in Kano.
Speaking through a recorded video message, the former president said young people must refuse any campaign built on hate, segregation, discrimination and marginalisation, no matter who is behind it.
He said youths should not sit down and wait for change, but must fight for the kind of future they want for themselves.
According to him, young Nigerians must be positively disruptive, and must be ready to shake the system in a good way to bring real development.
Obasanjo reminded them that Nigeria was built by young leaders in the past, and he mentioned the likes of Aminu Kano and Anthony Enahoro, who stood up early to serve the country.
He said age, tribe or religion should not stop any youth from making impact, adding that the future of Nigeria is in the hands of the young generation.
"Don't let politicians divide you. You must reject campaigns capable of promoting division, segregation, discrimination and marginalisation, regardless of their ethnic, religious or age differences," he said.
The former president received the honour alongside former Executive Secretary of the National Universities Commission, Prof. Abubakar Adamu-Rasheed, and Mrs. Vadana Luthra.