🚀 Medial just raised $500k in Pre-Series A. Tap to read the announcement. 🎉

Download App

Home

Switch theme

Blog . Feedback . Privacy
Community Guidelines

Back to feeds

PRATHAM
•

Medial • 3m

📊 EBITDA Positive ≠ Profitable: The Startup Illusion/delusion EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is just a fancy term used to prevent yourself to be called loss making and shows reduced losses 1. Depreciation Reality: Those servers and fancy office chairs? They're losing value 2. Interest Burden: Venture debt isn't free money. Those interest payments are real headaches as entrepreneur 3. Tax Troubles: I don't I need to explain it 4. Capital Expenditure (CapEx) : EBITDA ignores the cash you're burning on long-term investments. Basically the above mentioned points aren't calculated while measuring EBITDA so Many startups are EBITDA positive but not profitable Remember: Cash is king, profit is queen, and EBITDA +ve is a guy who prevents you to be called loss making company

24 replies22 likes

Replies (24)

Arcane

Stealth • 3m

Even Charlie Munger calls it BS earnings

0 replies1 like

Ronak Patel
•

Medial • 3m

💯

0 replies1 like

Anirudh Gupta

Stealth • 3m

Ebit da is like living a rich life on Instagram but real life is gareeb 😭😝

2 replies3 likes

Anirudh Gupta

Stealth • 3m

Even I used to have doubts..because we do problems on ebit in fm subject...even I don't get why ebitda is even considered in the first place

0 replies1 like

Anonymous 6

Stealth • 3m

EBITDA is just a temporary badge of honor for startups. It's like scoring high in practice, but the real game—actual profitability—is where you need to prove yourself.

1 replies1 like

Anonymous 5

Stealth • 3m

Relying on EBITDA can be misleading; it might mask underlying financial issues and make a startup appear healthier than it actually is, then during VC audits the deal won't go through. It's very painful

0 replies1 like

Havish Gupta

Stealth • 3m

Tbh, the only use of it is just to improve the company's image in the public. As general public doesnt know the difference between them and media won't tell.

1 replies1 like

Anonymous 4

Stealth • 3m

Startups be like: In the delulu of Profits, Ebitda is the Solulu

2 replies1 like

Anonymous 3

Stealth • 3m

EBITDA is the fancy makeup some startups wear to look good on paper. But, when the glamour fades, you still have to face the ugly truth of interest payments, taxes, and depreciation.

1 replies

Anonymous 2

Stealth • 3m

Absolutely, understanding the difference between EBITDA and true profitability is crucial for startups. Many people don't go beyond seeing positive EBIDTA.

1 replies1 like

Hathoda Tyagi

Stealth • 3m

[This post has been deleted by the creator]

1 replies1 like

Anonymous 1

Stealth • 3m

EBITDA is like dressing up your financials for a party, but underneath, you're still bleeding money. The real challenge is surviving long enough to turn that 'positive EBITDA' into actual profits.

1 replies2 likes

Recommendations from Medial

Vikas Acharya
•

Medial • 10d

What is EBITDA ? Get to know about earnings before Intrest, tax , depreciation and Amortization!

0 replies2 likes

PRATHAM

Stealth • 8m

📢 WTF is EBITDA ❓🤔 EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization ( Amortization in simple words is like repayment of installment/loans). It’s like looking at how much money a company makes from its core busine

20 replies20 likes

Gautam Ambani

Stealth • 6m

LOL Same story of all startups waanna be listed on BSE , NSE. Don't give a shit about profit until want to go public. Do profit before a year or two wanted to do IPO. OYO has reported a profit after tax of nearly INR 100 crore ($12 million) for fisc

1 replies6 likes

Ronak Patel

Stealth • 4m

Wth is CM1, CM2???? CM - Contribution Margin Contribution margin is the selling price per unit minus the variable cost per unit. CM1 = Contribution margin one= selling price- material costs - logistics costs. CM2= Contribution margin two= sellin

9 replies12 likes

Vaibhav Babruwan Shingde

Stealth • 8m

Hello Everyone 🤩💭, Today's topic is EBITDA, Gross Margin and Operationally Positive terms: EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) - > 🤑 •Measures overall financial performance and cash flow potential •Usef

4 replies14 likes

Inactive

Stealth • 6m

Today in the Cafe! EBITDA: Earnings before interest, taxes, depreciation, and amortization, a method for measuring a company's financial health and ability to generate cash. Mezzanine Financing: A hybrid form of financing that is often a mix of de

4 replies9 likes

Arcane

Stealth • 1m

Profitability Metrics These are the stages of profitability every founder should be familiar with (Refer the table below) In the beginning, Start with Contribution margin (CM)- measure if your revenue covers variable costs. Next, target transacti

3 replies7 likes

Anonymous

Stealth • 8m

A whole lot of people think that so many founders are stupid because they are making loss when they don’t realise that’s what it takes to become a huge startup indeed. Take an example of Reddit, Facebook, Amazon, etc. Penetration is important to go b

31 replies49 likes

SHIV DIXIT

Stealth • 1m

🎯 Top 130 Most Consumed Financial Terms In Business or Startup World 🌍 ( PART - 1 ) 1. EBITDA 2. ROI 3. Revenue 4. Profit Margin 5. Cash Flow 6. Net Income 7. Gross Profit 8. Operating Expenses 9. Balance Sheet 10. Income State

6 replies21 likes

SHIV DIXIT

Stealth • 1m

🎯 Top 130 Most Consumed Financial Terms in business or startup World 🌎 ( Part - 2 ) 131. Bootstrapping 132. Co-Founders 133. Angel Round 134. Crowdsourced Funding 135. Strategic Alliance 136. Business Incubator 137. Accelerator 138.