Because "profitable" is a better proxy for "successful" than "positive cash flow."

You are right, and that's the whole reason the word profit exists.

What troubles me is that it's hard to interpret an answer to 'are you profitable?' because it's:

- Somewhat subjective: Internal accounting policies (e.g. amortisation of R&D) affect the answer, and you are unlikely to know much about these accounting policies (unless the company has published audited accounts). - Poorly understood: The person who answers the question may unwittingly answer a different questions from the one asked. They may do this unintentionally, of course, because they don't understand that EBITDA != profit.

Of course, one question on the financial state of the business is not enough.