Startup Profitability Debate
The cluster focuses on discussions about whether startups and high-growth companies should prioritize immediate profitability or reinvest revenues for expansion, with debates on sustainability, business models, and examples like OpenAI and Twilio.
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It’s still a startup if it’s not profitable yet ;)
Don't forget that the company isn't profitable yet.
Startups need to be profitable too.
They're a business that's not yet profitable. It's not that complicated.
Yeah, and how long can OpenAI etc. hang on without making profits.
It's hard to understand what companies mean when they say profitable these days.. maybe they meant gross profit positive or profitable on unit economics?
Interesting. I thought start ups are commonly not in profit
Exactly, these companies aren't profitable yet.
Please explain why it is bad for a growing company to turn a profit?
I assume that is because they are still pursuing growth over immediate profits. I imagine that they could easily be profitable at these revenue levels if they were to just keep enough staff around to keep the servers running, for example. In other words, with that much revenue, I think the only reason not to be profitable is because they think they can be even more profitable by continuing to accelerate growth, for now.