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Re:Allbirds S-1 IPO by hammock on Tuesday August 31, 2021 @12:46PM (#28370350)
Is that unusual?
Re:Allbirds S-1 IPO by ac29 on Tuesday August 31, 2021 @01:18PM (#28370807)
Maybe not unusual for a young, growing company, but its obviously not sustainable for each dollar in profit to cost more than a dollar in sales/marketing effort. Thats a negative ROI.
Re:Allbirds S-1 IPO by wonnage on Tuesday August 31, 2021 @01:27PM (#28370918)
You're confusing profit and revenue
Re:Allbirds S-1 IPO by gamblor956 on Tuesday August 31, 2021 @02:20PM (#28371586)
Gross profit = the profit from a specific business activity, in this case, sales, when looking solely at sales revenue less the specific costs of generating that revenue (aka COGS).

Net profit = the profit from the overall business, taking into account all sources of income and all expenses.

Sales and marketing are usually not treated as part of COGS, because they are not a necessary expense (in this context, COGS would include things like materials and production costs).

Re:Allbirds S-1 IPO by RC_ITR on Tuesday August 31, 2021 @03:19PM (#28372290)
Many investors think in gross profit terms rather than revenue terms, because gross profit is the actual “cash in” from a given sale.

That had become less common because software has famously high gross margins that aren’t necessarily linearly tied to revenue, but allbirds are shoes.

Re:Allbirds S-1 IPO by RC_ITR on Tuesday August 31, 2021 @03:17PM (#28372263)
When you’re growing that gross profit by 10% and you’re not locking customers into long term revenue agreements?

No comment on usual or not. Definitely not “good”.