[smiths1999]

Yes - the comment you are replying to is making the point that revenue may be $500,000 (extrapolated) but if server costs are $1,000,000 then the app is losing money, not making money.

I see this trend quite frequently, only mentioning revenue but leaving out costs.

[busymom0]

Yep. One thing which I have learnt from watching Shark Tank is that many companies would come with crazy valuations because they make millions in revenue. Only once questioned by the sharks would they disclose the much bigger operating costs and were severely bleeding money instead of profits.

[superfrank]

To put it succinctly, "Revenue is vanity, profit is sanity".

[shripadk]

Yep! Not to take away from what you said (which is absolutely true) the author does mention hitting profitability (assuming it is in 2018).