A hardware company that makes $100k in revenue (with no profit) is very different than a SaaS product that makes $100K with 90% profit. Why don't we just use profit?
A hardware company that makes $100k in revenue (with no profit) is very different than a SaaS product that makes $100K with 90% profit. Why don't we just use profit?
What you're looking for is gross margin, but even that is hard to pin down exactly since there can be a fuzzy line between whether an expense is required or discretionary.
Revenue has its own issues obviously but as a quick and easy measure of how much money this business can generate its reasonably useful.
A lot of very successful businesses have zero or near zero profit (considering that paying the CEO reduces the profit, reinvesting reduces the profit, etc).
It's one of the least interesting things to me compared to the actual product or ideas. I get that it's mainly content marketing to talk about how much you're making but why does it work so well?