Revenue growth can coexist with weak economics if each completed job consumes too much computation or human work. Start with an outcome a customer accepts, then measure revenue and the variable cost of delivering it. The contribution calculation below is a management example, not a standard accounting definition of gross profit or net profit.
A hypothetical task-level calculation
All figures are invented currency units per accepted task, after allocating failed attempts. No company results or market averages are implied.
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| Item | Amount |
|---|---|
| Revenue | 10.00 |
| Compute and model use | 2.00 |
| Human review and rework | 3.00 |
| Other variable delivery costs | 1.00 |
| Contribution before fixed overhead | 10 − 2 − 3 − 1 = 4 (40%) |
Stress-test the human workload
If human review and rework rise from 3 to 6 while other assumptions stay fixed, contribution falls from 4 to 1, or 10% of revenue. That remainder still has to support fixed payroll, research, sales, administration and other excluded costs. The business can therefore grow revenue while generating little or negative net profit.
Ask for the reconciliation
- Reconcile paid tasks, accepted tasks, refunded tasks and cash collected. Explain how retries, unused capacity and customer support are allocated.
- Keep billed revenue, recurring revenue estimates and cash receipts distinct. Compare customer cohorts over time; a pilot subsidy or promotional credit may distort early margins.