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p84 'illustrates the economics' and shows positive contribution profit. But when you look more closely at the numbers on page 16, you see: - Once you deduct ma
by rahimnathwani 5y ago
p84 'illustrates the economics' and shows positive contribution profit. But when you look more closely at the numbers on page 16, you see:
- Once you deduct marketing costs, contribution profit goes from 11% to 2%
- G&A is $77MM, which seems like a lot when you consider fulfillment is only $53MM. I wonder how G&A will increase as revenue increases. Even if 5% of G&A is variable (proportional to revenue), this results in 0% contribution profit.
Of course, we can also wonder what the 'other depreciation and amortization' is.