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