Profit is irrelevant for an early stage growth company.
Peter R. wrote:
Because number of subs is the measuring stick.
Revenue is more important; but profit is the most important.
Not many can speak to profit, so they measure in subs.
Matt Liotta wrote:
Not sure why the number of customers is even important when the
quality of customers can vary so wildly. I run into WISPs regularly
whose ARPU is barely above $100. At 1000 customers an ARPU of $100 is
only $1.2M per year. That's a lot of radios and a lot of customers
for very little revenue. Compare this to CBeyond, which is an
Atlanta-based CLEC that in recent time went public. Today they have
about 17,000 customers, but their ARPU is $761. With just 1000
customers, an ARPU of $761 would be worth $9.1M. Or to look at it a
different way, with 17,000 customers an ARPU of $100 would only be
$20.4M compared with the $155.2M they pull in now.
A WISP would be wise to raise their ARPU as opposed to the number of
WISPA Wireless List: email@example.com