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Revenue per employee isn't a useful metric here IMHO. If Company A sells $100M of televisions which they imported for $95M they've made $5M in profit. If Comp
by michaelt 2y ago
Revenue per employee isn't a useful metric here IMHO.
If Company A sells $100M of televisions which they imported for $95M they've made $5M in profit.
If Company B sells $100M of search ads which they served for $1M they've made $99M in profit.
From a revenue perspective they're equal - but $1M invested in Company A produces a 5% return on investment, while the same $1M invested in Company B has a 9900% ROI.
- finnh 2y agoThe quoted section is about net revenue, which in this article means total revenue minus the payouts to creators. In other worse, revenue minus COGS. It's a valid comparison.
- michaelt 2y agoAh, you're right. I confused the quoted section with the second paragraph and first two charts of the article, which are throwing around billions and comparing to the NBA based on gross revenue.