What this number suggests to me is that Tumblr has revenue less than 20 million dollars. I figure:
- about 100 employees
- based in new York
- average $100,000 salary
- 10m annually in humans
- 2-3m annually for office expenses
- 20-30m annually for hosting
Some of these numbers can be up or down, but when I worked at a similar company in New York, we had operating expenses in the same range. (Coincidentally, we had revenue on the same range, and got sold off in a fire sale)
Shipping can certainly be made much less impactful, if that's what you are thinking. A lot of shipping is overland trucking, and a lot of overland trucking can be replaced with trains, and a lot of trains can be replaced with electrified trains. That would make quite a bit of difference