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> Google made $300B last year. No, Google made $73.795B last year. Revenue is not profit, net income is profit and what you ‘make’ as a company. Revenue is no
by quickthrowman 2y ago
> Google made $300B last year.
No, Google made $73.795B last year. Revenue is not profit, net income is profit and what you ‘make’ as a company.
Revenue is not profit.
- barbecue_sauce 2y agoI mean, they "make" both. "Make" does not imply profit. If you say a company "made" a revenue figure, then you mean it in the revenue sense. It's contextual.
- quickthrowman 2y agoNo, it’s not contextual. “Company X made $N billion dollars” only means one thing, net income.
- nick7376182 2y agoSorry bro it's contextual.
- WesBrownSQL 2y ago100% contextual. In every business where I've been an executive, or had access to the budget, we talk "made" as gross revenue and EBIDA as a stand in gross profit and specifically call out net profit in internal meetings. For example, "We made 10 million with an EBIDA of 1 million and net of 200,000.00." Using EBIDA to talk to potential investors and as a guiding metric if we didn't have a well established gross profit formula that followed GAAP.
- kortilla 2y agoThat’s like saying a trading company made a trillion dollars because you counted all of the securities sales but not the costs.
- eropple 2y agoI don't think that's nearly as universal an assumption as you're claiming. Like--I made $X,000 dollars last year, but I also have a mortgage and like to eat food.
- grugagag 2y agoBy that logic I make what I can save, lol
- ta1243 2y agoWell yes. Companies get to write off expenses of existing People don't
- bryanrasmussen 2y agoright, which if you follow that assumption you can see that things are not as great as you thought.
- kortilla 2y agoMortgage accumulates equity. Bad example
- ta1243 2y agoMortgage interest payments don't Your assets might inflate in value, but that's nothing to do with the mortgage
- g15jv2dp 2y agoEven if we subscribe to this interpretation, the overall point stands.
- thaumasiotes 2y agoRevenue isn't profit, but your wasted business expenditures are properly measured against your revenue. That's what they're spent from.
- bryanrasmussen 2y agoFirst off - how much of revenue usage last year was on fines etc. That is to say profit they could potentially have had. Second there is lots of revenue you use for "business" because you don't want to pay taxes on the profit and anyway it is giving you something you like to have. How much of Google's revenue is used to do things for top executives and people with power in the company that is really something they (the executives) should be taxed on but is instead a business expense of google (cars, transport, 'working' vacations, security, super cool chefs preparing meals at the company...) Hard to say really because if you knew the answer it would actually be something they were taxed on. But it's not 0 - sure probably not a billion, but a couple hundred million splashed around wouldn't surprise me. How much of Google's revenue usage is for wages and other forms of payout to executives etc. (stock) that does not get counted as profit but of course it is amounts those people want to have. Google made $73.795B profit last year, and expensed slightly over 262B - some portion of which the people who run Google no doubt personally thought of the way we would consider profit in our day to day existence, and another portion of which were fines for things they did in getting the rest of the money.
- kortilla 2y agoLiterally none of that is relevant for much the corporate entity made (I.e. what the shareholders got).
- bryanrasmussen 2y agoObviously the fines, which are the first thing mentioned, is relevant for how much the shareholders got. Literally the other stuff is relevant for how remunerative the people who actually run the companies, day-to-day, feel those companies are (put in day-to-day because I got the feeling you might give me a lecture about the shareholders actually running the company)
- xp84 2y agoPersonally I think you have a decent point since in practice employees of GOOG are shareholders too. Although I don’t know if their interests matter to the corporate entity because I don’t know what percentage is held by insiders.
- nemothekid 2y agoThis is a bizarre nitpick. 1. I know it's revenue - the GP says The impact on google losing $10m of revenue 2. Do you think the 10m that Google would have booked from API usage would be booked as pure profit?