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Are people still making comments like these in 2025?

What the hell do profits have to do with valuing tech startups?

Profitability might not be as relevant as it used to be in M&A discussions, but it matters when you’re paying $1B.

Valuations like this only make sense if there’s a clear path to significant strategic leverage or future cash flow.

No, it doesn't matter when you're paying $1B. Why would it? Tech companies don't care about profits. It's easy to become profitable - tech margins are obnoxiously high. They're bought and valued for their ability to scale and rapidly absorb market share.

Fair point. I submit that I'm probably overestimating how much profitability matters here.

I've been hearing that Neon is burning through cash pretty aggressively, which raised eyebrows for me. But you're right: high margins and scalability mean profits can be deferred.

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