11–20 of 590 posts
TL;DR; if you discount the way their accounting is done (which artificially lowers their profits), it's not profitable because Apple and Google are eating 30% of their sales on their App stores.
The DOJ needs to crack down on Apple and Google.
reminds me of the path Minecraft could have taken - they also had a massive amount of community developers building servers, but instead of encouraging monetization and taking a cut, they banned it and cracked down aggressively Of course, unlike Roblox, Minecraft was profitable
TL;DR; if you discount the way their accounting is done (which artificially lowers their profits), it's not profitable because Apple and Google are eating 30% of their sales on their App stores.
No innovation / monopoly tax levied on real innovation. The DOJ needs to crack down on Apple and Google.
Where is the money coming from if they are not profitable?
1) Make tons of cash.
2) Invest the cash back in the business.
3) Record this investment on the financials as an expense.
4) The expenses inflated by investment spending means you declare no profit and probably pay no tax on that profit you just hid.
The alternative is:
1) declare profit
2) Pay tax on it
3) Reinvest what's left after the taxman took a cut.
Which would you choose if you were raking in loads more money than it was costing you to run the business and you had growth opportunities?
Should this be a choice?
If not, how would you "fix" it?
short rant over
Where is the money coming from if they are not profitable?
It's an accounting trick. 1) Make tons of cash. 2) Invest the cash back in the business. 3) Record this investment on the financials as an expense. 4) The expenses inflated by investment spending means you declare no profit and probably pay no tax on that profit you just hid. The alternative is: 1) declare profit 2) Pay tax on it 3) Reinvest what's left after the taxman took a cut. Which would you choose if you were…
Where is the money coming from if they are not profitable?
It's an accounting trick. 1) Make tons of cash. 2) Invest the cash back in the business. 3) Record this investment on the financials as an expense. 4) The expenses inflated by investment spending means you declare no profit and probably pay no tax on that profit you just hid. The alternative is: 1) declare profit 2) Pay tax on it 3) Reinvest what's left after the taxman took a cut. Which would you choose if you were…