Replit’s Amjad Masad on the Cursor Deal, Fighting Apple, and Why He’d Rather Not Sell
Amjad Masad, Replit’s founder and CEO, has seen tremendous changes in the last 18 months. Transitioning from $2.8 million in 2024 revenue to aiming for a billion-dollar annual run rate, Replit’s momentum continues to build. Speaking at TechCrunch’s recent StrictlyVC event, Masad addressed the big industry question: After news of rival Cursor being in talks for a major SpaceX acquisition, could Replit also be considering a sale?
Staying Independent in a Competitive Landscape
Masad emphasized Replit’s goal of maintaining independence. Unlike Cursor, which faces negative margins due to high cash burn and costly model training, Replit operates with positive gross margins and targets a broader, often non-technical customer base. The company’s end-to-end platform—from code prompt to scalable deployed app—has enabled steady growth without sacrificing profitability.
Business Health and Customer Retention
Replit’s net revenue retention has reached as high as 300%, thanks to loyal customers and a robust product. Churn rates remain low, with companies like Bain & Company adopting Replit for their core analytics and reporting needs. Even as enterprises attempt to port successful prototypes in-house, many return to Replit for its secure, scalable infrastructure and single-tenant solutions.
Collaboration with Leading AI Labs
Replit integrates technology from top AI firms: Anthropic, Google, and OpenAI. Masad praised Anthropic for agent consistency and tool use, but noted that OpenAI’s GPT-5 and Google’s cost-effective Flash models are quickly catching up. The platform also keeps an eye on rising open-source and non-Western AI models, highlighting the pace of AI progress worldwide.
Security and Product Differentiation
Security is a cornerstone for Replit. The company’s environment isolates each deployed app, leveraging Google Cloud infrastructure to ensure privacy—a feature that appeals to IT and C-suite decision-makers. According to Masad, this focus gives them an edge over competing low-code platforms that expose databases publicly, often complicating security for non-technical teams.
Challenges with Apple’s App Store
Replit’s relationship with Apple has been strained after Apple blocked updates to the Replit app, allegedly over policy violations regarding downloading new code. Masad disputes Apple’s claims and is prepared to defend Replit in court if needed, but ultimately hopes for a collaborative solution. Despite these issues, he notes that loss of the iOS app would not significantly impact the business, though it remains valuable to users, especially in underprivileged communities.
Investing in Customers’ Success
With Replit’s ecosystem thriving, the company is considering following industry leaders like Nvidia and OpenAI in investing directly in customer startups, sometimes in exchange for equity. Masad noted personal investments in ventures that began on Replit—like Magic School, which rapidly achieved success—and observed startups on the platform reaching significant valuations and revenue milestones. Integration with payment services like Stripe further highlights the entrepreneurial momentum within Replit’s user base.
For further details and the full conversation with Amjad Masad, read the original article on TechCrunch.
