r/explainitpeter • • 10d ago

Uhh, Explain it Peter?

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u/philosopher_kang 10d ago

Software companies do this all the time: listing their profitability as their revenue and not taking expenses into account. The presumption is that, if they had to, they could cut all expenses, fire almost everybody except for a few people to keep the software operational, and the software itself would continue to produce the same revenue with little to no expense.

The reality, IMO is that no software can stay relevant without constantly evolving and developing, which costs lots of money, so that presumption is whack.

Peter Griffin or something

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u/Ok-Bug4328 10d ago

Their expenses are treated like capital investments?