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The net profit numbers by themselves don't tell you much about the health and prospects of the company. One big issue is that customer acquisition cost tends t
by nieksand 10y ago
The net profit numbers by themselves don't tell you much about the health and prospects of the company.
One big issue is that customer acquisition cost tends to be upfront whereas the life time value lags behind. E.g. you have to hire sales people now, it takes X months for them to become productive, and another Y months for those new customers to fully onboard.
So to put those numbers in to context, you would have to look at revenue growth, margins, customer churn, cac, ltv, etc.
- wslh 10y ago> The net profit numbers by themselves don't tell you much about the health and prospects of the company. I am not saying they do but they help to discuss the IPO.