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by Descartes1 2929 days ago
Revenues are irrelevant. Profits aren't.
4 comments

Revenue is vanity. Profit is sanity. Cash is reality.
It's not so black and white. They are both valuable. However, sharing revenue is a consistent theme of my website, like IH.

If you read more into the many interviews I've done - you can find many founders talking about profits/margin.

This is a really ignorant thing to say. If you have a hearty revenue stream but no profit, you can tweak the model to make it profitable. Some profits aren't possible at small scales, so having revenue proves you have demand and can lead to safely risking big bucks to get to a profitable scale.
Especially in the eCommerce business where you might have a deal with a supplier. It's not unusual to be able to negotiate a higher margin the more you sell. Any single financial metric alone cannot tell the whole story of a business. Revenues are equally as important as profits.
> If you have a hearty revenue stream but no profit, you can tweak the model to make it profitable.

I don't think this necessarily follows.

Yep, this is a reoccurring problem on his blog. Low quality interviews and articles.

I believe he has lots of accounts to upvote, otherwise this would be hidden.