Walling: Profitability is a drain on growth in SaaS
“If you're profitable, you're not investing in growth. You're putting cash in the bank, and so you're not going to be growing as fast, almost inevitably. And so to take two businesses at the same ARR and say they're going to be growing the same amount, while on…”
Putra: Business profitability is a human problem, not a math problem
“I'm just finding that that profitability is not a, it's not a math problem. It's a human problem.”
Kim: AI app cost structures allow high growth to equal high profitability
“The current dynamic of the cost structure, especially for apps companies, Really favor this equation of gross almost equals profitability. The margin structure of some of these companies that we're investors in is incredible.”
Spotify achieved profitability through price increases enabled by accumulated consumer surplus
“We price raised a few times, Which is part of why we're profitable now. But that's because we had such user surplus in value.”
Green: High Gross Retention Enables Software Businesses to Pivot to Profitability
“If you have 70, 75, 80% gross retention, it's much harder. But if you have a 90, 95% gross dollar retention business, yeah, like, make the hard decisions. You know, and get the thing to profitable.”
Payne argues growth trumps profitability for SaaS companies before reaching scale
“I still believe, and I know it's unpopular this month, but the growth trumps profitability right now, especially if you're early in a market and you're not at scale.”
Neha Singh: Indian public markets prioritize profitability over revenue milestones
“Another thing in addition to the revenue, another thing which I realized that the Indian public markets also really likes is the profitability. So they want you to, you know, hit the market when you have a clear path to profitability or you've already become p…”
Davis: Startups cannot scale into profitability with negative gross margins
“You can never scale into profitability or a healthy company with a negative gross margin. Unless it eventually writes itself.”
Çilingir: Growth remains king over capital efficiency and profitability
“At the end of today, even in this, again, macroeconomic environment, where people are starting to look for also profitability or capital efficiency, still, ladies and gentlemen, growth is the king.”
Hsu says early profitability makes fundraising easy and businesses resilient
“If you can get to profitability very early and you can keep your growth rate up, you're just in such a great position. Your business is just so healthy. It says that, you know, it's very hard to ever become unprofitable, and raising money becomes so easy if yo…”
Supergoop achieved profitability in 2019 and double-digit margins in 2020
“Well, fortunately, twenty-nineteen for Supergoop was our year to get to profitability and double-digit profitability this year.”
Hoover: Product Hunt achieved profitability in 2018
“And so we're, we hit profitability last year.”
Kelleher: 4% Profitable Market Share Beats 90% Unprofitable Share
“Let's focus on profitability. And if we have four percent of a market and we're profitable, that's better than having 90% of a market and being unprofitable.”
Forsgren: Fast, stable software delivery drives commercial profitability and market share
“Developing and delivering software with speed and stability drives things like profitability, productivity, market share.”
Eyeview aimed to achieve profitability by 2019
“We want to be profitable by next year, which is a really important place in our business.”
Barrett: Achieving actual profitability matters far more than predicting it
“Predictability is not nearly as important as people make it out to seem, because, like, predictability is always good until suddenly something changes and it's no longer predictable. You're fooling yourself if you think you know the future. I think it's much b…”
Kelleher: A profitable 4% market share is better than an unprofitable 90%
“So I said, let's focus on profitability. And if we have four percent of a market and we're profitable, that's better than having 90% of a market and being unprofitable.”
A profitable 4% market share beats an unprofitable 90% share
“So I said, let's focus on profitability. And if we have four percent of a market and we're profitable, that's better than having 90% of a market and being unprofitable.”
Livingston: In Late 2008, YC Only Funded Startups Capable of Quick Profitability
“We went into interviews saying we're only going to choose companies that we think could make it to profitability really quickly on their own And then they can like live as a cockroach.”