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P&L is not a useful metric for growing startups. If the lifetime value of an Airbnb customer exceeds their marginal cost (including COA), Airbnb should buy cus
by morgante 11y ago
P&L is not a useful metric for growing startups.
If the lifetime value of an Airbnb customer exceeds their marginal cost (including COA), Airbnb should buy customers all day long.
I strongly suspect Airbnb's marginal returns are fantastic. Their model seems highly profitable on a unit basis.
- joelrunyon 11y agoI'm not saying it is or isn't - what I'm saying is you have to realize that revenue ≠ profit and failure to do so gets you something like what happened to Groupon.