[ravenstine]

A person can have an income of $300k a year but spend every penny of it on debt and necessities. That's generally not considered making a profit.

EDIT: Sorry, I misunderstood something. Netflix has indeed been making a profit.

[dmoy]

Sure but if a corporation makes 300k a year that's called revenue, the revenue minus costs are profit, no?

[notyourday]

Basically, it depends on the size of the company - the numbers reported by Netflix are GAAP. The tricky part is depreciation and amortization v. cash which would create a different outcomes in a cashflow and GAAP.

A company with a positive cashflow and GAAP profitable is in the best spot, followed by a company with a positive cashflow and losing money in GAAP-land, followed by a negative cashflow and positive GAAP-land, followed by a negative cashflow and negative GAAP.

[hackits]

Revenue-Expenses=Profit