Remove Advertising Remove Cash Flow Remove Finance Remove Metrics
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A Blueprint for Digital Companies’ Financial Reporting

Harvard Business

The level and trend of a company’s top-line metric is an advance indicator of the success of its business model. However, the real revenue-providing customers are companies that pay for advertisements (they may be called “revenue units”). Many of these metrics are disclosed in Facebook’s financial statements.

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Subscription Business Models Are Great for Some Businesses and Terrible for Others

Harvard Business

Identify the right metrics. In the digital membership economy, the metrics best apt to indicate success are more likely to be around member churn and engagement. For finance, short-term revenue gains do not justify poor treatment of members. Successful membership businesses focus on the long-term relationship.