Unit Economics and Path to Profitability

A business can grow revenue at 80% annually and still be destroying value on every transaction. Unit economics reveal which growth is real and which is subsidised market share that will eventually unwind.

Why This Matters

Unit economics describe the revenue and cost structure of a business at the level of a single transaction or customer. They answer the most fundamental question about a growth business: is each unit of growth creating or destroying value? Total revenue growth tells you how fast the business is scaling. Unit economics tell you whether it should be scaling at all.