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ButterflyEffect  ·  3 days ago  ·  link  ·    ·  parent  ·  post: Juicero, but make it for coffee

    We'd sell a music subscription to, say, Bank of America. The idea is, they're going to give us $20/mo for piping the Fugees into the lobby of every BofA. That's 6900 banks! That's $138k a month! $1.66m a year! Except we're going to give them a 40% discount for the first two years. So really, it's $993k a year. And we're giving them the system for free. Which, with installation, comes in at $2500/store. So... $17m in outlays. And it's a five-year contract. So... we're spending $2500 to earn $1000... seven thousand times. Except what we report - non-GAAP - is $140k a month in recurring monthly revenue (RMR) STRAIGHT INTO THE VEINS of our EBITDA. It gets better though because I report the price of our player as zero dollars because we make it and we can give it away. The player department reports 6900 sales at $1200 ea because non-GAAP, we just "earned" $8m from selling players to Bank of America.

Yeah, you know, I've wondered about this having worked for 1 company who cared mostly about EBIDTA and another who does care about it, but since we don't have shareholders are like "we'll report it and try to optimize it but it's not a be-all-end-all". I'm not sure what you do about that one other than tighter SEC regulations which...lol that ain't happening.