5 ms·

No, it's operating profit.

• kiba 3y ago
  I took a look at a fool article. If you exclude the unrealized return from an investment they made, their profit are in the single digit millions. Not really confidence inspiring, but maybe I am wrong and that they could indeed make their business sustainable.
  • Dylan16807 3y ago
    "could indeed make"? What's not sustainable about that level of profit? And aren't they still spending a lot on expansion?
    • kiba 3y ago
      It implies that their margin is really low. We're talking about revenues in hundred of millions and they're only able to make single digit millions. Next quarter, their margin might entirely be wiped out by a slight downturn in business. If they could increase their margin and make profit consistently, then I'll change my mind.
      • Dylan16807 3y ago
        Is a particularly big percentage of their costs fixed? Because that affects the math a lot. If we consider a generic slightly-profitable company facing a 25% revenue drop, there's a huge gulf between a world where costs drop 10% and a world where costs drop 22%.