>>30821172I'm actually looking at the documents for Cover's financials right now, and let me tell you, it is a much better indicator than you may think it is.
Let me preface this by saying that "Fiscal Year(FY)" is a period that ranges from April 1st of one year to March 31st of the next. So "FY2020" means "From April 1st, 2019 to March 31st, 2020."
Their accounting statements are fucking STUPIDLY solid. In the past three periods, Cover went from making a gross profit of $6,400,000 (FY2020) to making $39,500,000 (FY2022). But despite that, their executive compensation totals only went from a salary of $90,000 (FY2020) to $480,000 (FY2022). Meaning the money being paid is not being siphoned to the corporate head honchos, it's being used elsewhere, that's good.
For total Net Profit (Money kept after all expenses are paid), they went from $1,300,000 (FY2020) to $9,400,000 (FY2021). So in FY2021, they RETAINED more profit than they earned BEFORE ANY EXPENSES IN FY2020. THAT'S GOOD. THAT'S REALLY GOOD.
But that's only something business people would care about. What's really, REALLY, REALLY GOOD is what comes in FY2022. See, in FY2021, the gross profit was $21,100,000 (FY2021). Of that, they retained $9,400,000.
Now, in FY2022, the gross profit was immense. $39,500,000 (FY2022). They nearly fucking DOUBLED their gross income. But how much did they retain after expenses?
They retained $9,300,000 (FY2022) in profit. That's LESS RETAINED EARNINGS THAN FY2021.
They doubled their gross earnings (And remember, Gross Profit = Income after the cost incurred by selling the product, so all sales costs are taken care of already), but they retained less. Why? Because nearly all of that money was DIRECTLY RE-INVESTED BACK INTO THE COMPANY.
For the following stats, I'm going to compare FY2022 to FY 2021 and show you what grew, and explain what each section is so you understand what they've been spending on:
>Salary Allowance (the amount paid as a base salary to managers and staff[possibly talents as well, but if they're contracted instead of hired on, as some people have said, it would be later on for them]) rose 126% YoY>Welfare Expense (Cash allocated to support workers in various, non-salary ways) rose 225% YoY>Education and Training (training new staff and new talents) rose 282% YoY>Travel Expenses (The money allocated to staff to meet with talents and personally help, and to go in-person to other corporations to make deals) rose 156% YoY>Commissions Paid (this is the hardest for me to understand without access to their actual books; this is either "expenses related to commissions for assets" exclusively, such as Mama/Papas and things like VSinger expenses, or "expenses incurred by contract work," which could possibly include talent pay. If you feel conservatively, assume talents are paid by the Salary expense. If not, talents may be getting paid under this expense) rose 10,630% YoY (!!!)Like, holy fucking shit, man. If I had the Japanese residency needed to comb over the raw stats myself, I'd be sitting here making a post that would go over the character limit five times over, but just from what I can see from that, Cover is like, the ideal company in terms of how they're treating their growth.
>Massive financial windfall>spend the money on quality of life improvements, increase compensation for everyone you work with so that their quality of life is increased and you become a far more attractive business partner, keep a significant chunk of money safe as a slush fund just in case, but most importantly, focus on re-investment into your company to generate high-quality production of goods, and high-quality servicesI was fucking amazed. Cover's business strategy is literally "plan for the long-term future." If they thought this was a fad, they'd have raised executive compensation insanely high, spent VERY little YoY on improvements, and pocketed tens of millions of excess. But instead, they're planning out business expansion in ways that indicate, at the very least, a five-to-ten year long business cycle, with a priority on improving lines of communication and facilitating staff/talent connections to the wider world. And all of that, WITHOUT EVEN NEEDING TO OR EVEN WANTING TO GO PUBLIC.
It's like a businessman's wet dream of a company, and a pretty fucking good deal for the worker, too.
