4 ms·
I think part of the problem here is failing to use correct terminology. We might say, in GAAP terms: * For 40% of the orders, they achieve a positive gross ma
by drone 11y ago
I think part of the problem here is failing to use correct terminology. We might say, in GAAP terms:
* For 40% of the orders, they achieve a positive gross margin
* We anticipate reaching positive gross margin on 100% of orders by the end of year
* Even after reaching positive gross margins, non-COGS operating costs are sufficiently high to result in a negative EBITDA
- hkmurakami 11y agoTo expand: non-COGS operating costs would include SG&A costs (Selling, General, and Administrative), among others. It's how a company like Box might have healthy gross margins on its unit sales but be unprofitable due to considerable marketing expenses as it tries to capture market share in a growing market.