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Comment by davmar | Hacker News Reader

In fact, if our run rate had been that high we would have been massively profitable.

with mad respect to dmor, this doesn't fit. even at 1.5m ARR, with 21 employees, office space, AWS bills and the 'etc', you aren't "massively profitable". i don't feel the need to go through the math since it's obvious. maybe there'd have been a few bucks to spare, but there are no "massive profits" there.

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That comment needs to be kept in the context of my blog post -- it is based on the company in January when we went out to raise. We had 14 people on the team at that time, had reached ramen profitability and then decided to spend conservatively to grow. At that point in time, increasing our ARR 3x would absolutely have made us hugely profitable percentage-wise to how much we were spending to generate that income.

i hear you. however my b2b saas business does 2M+ arr with 12 employees and still i would not consider us "massively profitable". no doubt there's a big difference between our cost structures and the biggest is probably employees. i'm assuming you must be paying below market for your technical employees in exchange for more equity.

I think a big difference might be cash flow - we are getting paid up front for annual contracts. So our ARR doesn't fully represent our cash position. We pay market rate salaries, benefits, etc.

we're also annual. in that case i'd say it's a growth rate difference - you guys are growing faster than we are. good on you!

Duh. A big difference is that my company is bootstrapped. You have additional monies in the bank from investors. #clearheadaftercoffee

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