3 ms·
83% gross margin and only $1m in net profit per year? Isn't that a bit low for a tech company? (no mean to be harsh, just questioning)
by ttpva 15y ago
83% gross margin and only $1m in net profit per year? Isn't that a bit low for a tech company? (no mean to be harsh, just questioning)
- kondro 15y agoI guess it all depends on if they are reinvesting for growth. Also, it depends on how much man-power it actually takes to run their business. Gross margin is revenue minus expenses directly relating to providing those good/services and usually scales with revenue. If they are trying to grow really fast, then they might be spending a lot on other expenses to increase this growth. These expenses aren't directly related to the sales.