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Generally agree with the sentiment, but here is likely why we continue to talk about MRR. 1. It's likely inherited from how investors look at startups. They ar
by mikesabat 4y ago
Generally agree with the sentiment, but here is likely why we continue to talk about MRR.
1. It's likely inherited from how investors look at startups. They are just focused on growth more than profitability.
2. In the US there are tax advantages to running costs through the business so these costs might be inflated and profit artificially reduced.
- giantg2 4y agoAnd with software a lot of your costs and overhead are fairly fixed. So as you scale up, more of your revenue becomes profit. Investors are looking at that future scaled up state.