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Collecting invoices is cash accounting, whereas revenue is realized only over the length of the contract and doesn’t care when the customer pays. (Of course som
by sophiebits 4mo ago
Collecting invoices is cash accounting, whereas revenue is realized only over the length of the contract and doesn’t care when the customer pays. (Of course sometimes you have a short-term contract including for professional services and such, but not to the point where a single day would likely be particularly inflated.)
- jmalicki 4mo agoFor Anthropic in particular, that we're talking about, API token costs are revenue that is earned in real-time not on a contract - so hypothetically a giant spike in token use on an API use contract could spike revenue. But I don't think most expect that to randomly fluctuate enough to be material.
- sophiebits 4mo agoPeople building applications that use AI do have longer contracts. Not sure how the split is vs Claude Code etc.
- jmalicki 4mo agoSure, but the moment they use the token the revenue is earned.