Replit targets billion-dollar run rate while resisting acquisition

At a tech event in San Francisco on Thursday night, Replit CEO Amjad Masad outlined the company’s rapid growth. Replit, which has been building for 10 years since its time at Y Combinator in 2018, went from $2.8 million in revenue in 2024 to tracking toward what Masad describes as a billion-dollar annual run rate. This expansion comes as competitor Cursor is reportedly in talks to be acquired by SpaceX for $60 billion. Despite these industry-wide acquisition rumors, Masad expressed a strong preference for Replit to remain independent, pointing to its launch of an agentic coding experience in September 2024 as a key driver of its current momentum.

Masad distinguished Replit from competitors by highlighting its financial sustainability. While he noted that Cursor reportedly has negative 23% gross margins, Masad stated that Replit has been gross margin positive for over a year. Additionally, Replit’s net revenue retention—a measure of how much existing customers expand their spending—is reaching as high as 300%. To power its platform, Replit works closely with AI model providers including Anthropic, Google, and OpenAI. The company’s growth is largely product-led, securing enterprise customers like Zillow, Meta, and Bain & Company. According to Masad, enterprise clients spending $100,000 a month with Replit typically generate returns of $2 million, $3 million, or even $10 million. This strong ROI has also fueled startups built on the platform; for example, Magic School, an AI platform for teachers in America, generated $20 million in revenue in its first year after its founder learned “vibe-coding”—or AI-assisted coding—on Replit.

Beyond its financial performance, Replit is currently navigating a public dispute with Apple over App Store policies. Apple has blocked Replit’s iOS app updates for months, stating that the platform violates guidelines by downloading new code to devices after approval. Masad strongly rejected this explanation, characterizing Apple’s claims as “outright lies” in its App Store battle with Replit. “That’s a lie. And we can prove it in court if we have to,” Masad said. He accused the tech giant of making “decisions that are discriminatory or based on whims,” though he noted he hopes to avoid legal action and would prefer to collaborate with Apple.

Why it matters

Replit is positioning itself as a sustainable, independent alternative to competitors like Cursor by highlighting its positive gross margins and high net revenue retention, while simultaneously navigating a public dispute with Apple over App Store policies.