The hottest Cash Flow Substack posts right now

Tesla missed revenue estimates and faces challenges with demand and margins
Netflix exceeded revenue estimates and subscriber growth while focusing on ad-supported content and gaming
Both companies have strong cash positions but face uncertainties in the future due to industry trends and market conditions

AI should enhance the value proposition of an existing service, not be the sole solution.
Focus on profitability and cash flow over venture financing and growth.
Building a sustainable cash-flow-oriented business with lean teams and low burn is more prudent.

Presto Automation (PRST-US) is a loss-making, debt-ridden company that is struggling and may not survive without external financing.
The company's core business of selling touch-screen tablets to restaurants is not profitable and faces challenges from cheaper alternatives like QR codes.
Despite touting itself as an AI company, Presto's AI products are white-labeled and its financial situation is concerning, with high debt, low cash, and burning through cash at a fast rate.

Revenue multiples have been traditionally used for valuations in the tech world, but they are proving to be ineffective in determining the true long-term value of businesses.
Companies shifting focus from forecasting future cash flow to revenue growth have faced challenges, as revenue multiples don't necessarily reflect future profitability, leading to discrepancies in valuation.
As competition accelerates in the tech industry, companies with strong market captivity and efficient growth strategies are prioritizing developing competitive advantages and generating long-term free cash flow over chasing revenue multiples.

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In a small team, running projects concurrently decreases execution risk and provides more learning opportunities.
Running projects sequentially keeps cash burn lower but increases the risks associated with failure.
Insurance companies diversify to reduce risk, similar to the concept of running parallel projects on a small team.