Profit is irrelevant for an early stage growth company.

-Matt

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.

- Peter


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 customers.

-Matt



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