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​The Most Profitable Software Company in Q1 2024​

Ethereum generated $370m in profit on $825m in revenue for about a 45% net income margin.

The chart above shows both the historical performance & also explains how web3 blockchains like Ethereum generate revenue & profits.

How does Ethereum compare to other software companies?

If Ethereum were to trade on the New York Stock Exchange or the NASDAQ, it would top the net income margin (%) charts, with Microsoft, Adobe and Veeva thereafter.

In terms of aggregate dollars across all publicly traded software companies, the Ethereum would be sixth. Note the profit scale in the chart above is logarithmic.

Ethereum’s market cap is roughly $350b today, which is on par with Salesforce & worth 7 Snowflakes.

There are many important caveats here. Ethereum’s historical profitability hasn’t been nearly this strong. The second is Ethereum isn’t organized as a corporation akin to others in this peer set. The third is the Ethereum token is both utility & “equity.” Last, Ethereum trades at 100x revenue compared to 7-17x for Salesforce & Snowflake.

But Ethereum demonstrates the compelling value that web3 blockchains can create.

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