Tag Archive for: contribution margin

What Airbnb’s Profit Struggles Teach Us About Contribution Margin (Blog post with graphics)

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I like Airbnb, and I’ve used the service multiple times.   The company has huge brand awareness, but was struggling to produce consistent profits in early 2020.   What Happened   The Wall Street Journal wrote about Airbnb’s 2020 profit struggles, as it considered launching an IPO. Here are some quotes:   “The company is […]

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Warning to Investors: Contribution Margin Is Not Company Profit

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So, we’re in a crazy political period, and it’s hard to know just what is true in a political ad and what isn’t true. In the investment business, however, we have extensive rules on disclosure to investors, and those rules are in place to provide all stakeholders- including investors- enough to information to make informed […]

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