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by sireat 2928 days ago
Revenues are necessary but not sufficient for profits.

Personally as a sole operator i'd prefer 10k revenue and 5k a month in profits over 100k in revenue and 2k in profits. However the last is more preferable for expansion.

To expand if you have 2M in gross revenue and only 2k in net profits this surely means that there is demand for whatever you are selling and some sort of optimization/innovation would bring you greater profits.

If you have billions in revenues then profits matter even less as long as the company keeps getting external financing from the markets and there is perceived need/potential for company products. Look up on how AMD, MU etc has been operating for 30+ years.