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Talk about a buried lede. They are profitable as long as they don't pay anyone a salary. That hardly counts as profitable. How can the service grow?
by unreal37 13y ago
Talk about a buried lede.
They are profitable as long as they don't pay anyone a salary. That hardly counts as profitable. How can the service grow?
- dinkumthinkum 13y agoThat's what I was thinking. That's an extremely disingenuous thing to say. This is especially since, apparently, many "renewals" were just auto-renewals and does not indicate any kind of traction.
- sp332 13y agoThey still have contractors working on new features.
- ry0ohki 13y agoWhen I was bootstrapping my startup while working a day job, I used to wonder how to answer that question. My product was bringing in more money then the company's costs, so it felt "profitable", yet not enough to employ me full-time. Seems like there is a difference between that and something that is just plain unprofitable (where the burn rate will eventually cause the bank account to go to zero).
- superqd 13y agoThe software doesn't write and maintain itself. So if the revenue can't cover the expense to write/maintain the codebase (i.e., dev salaries), then the app isn't profitable because one of the major costs can't be met out of revenue at 100%.
- hayksaakian 12y agoGross profit vs net profit If you make money after non-employee costs, then scaling up X times will eventually be enough to cover costs -- especially with a software product where you don't need 10x more developers to earn 10x more money