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Can the service itself be profitable but the company not be? I mean how do we define profitable?
by mcny 5y ago
Can the service itself be profitable but the company not be? I mean how do we define profitable?
- lmm 5y agoPresumably the employees are working below-market in exchange for equity, so the company is not really profitable yet - it's sort of "ramen profitable" in that it's profitable if you don't count the full rate of the workers' time.
- CameronNemo 5y agoIf the service is provided by employees who are compensated with equity, why would you not count that in profitability numbers?
- dboreham 5y agoBecause that's literally one of the reasons to use equity based compensation.