It turns out that you can make a lot of money by giving stuff away for free. That’s the lesson from Credit Karma, which today is announcing that it’s running its business profitably after earning $500 million in revenues last year.
Credit Karma launched to help consumers better understand their finances and to provide access to better financial products. Its flagship product is a free credit report and credit monitoring service, which it launched five years ago. Since then, the company has signed up more than 70 million users, which includes about one half of all millennials in the U.S.