$2 million doesn't go as far as one might think.
Exactly. When I saw that $2 million figure, I was shocked at how low that was. High end operating system and database tools can alone cost in the hundreds of thousands of dollars. They have to have 20 to 50 servers at the low end ($5k to $10k each) and very high bandwidth costs.
I work in a moderate sized company (1000 or so employees) and have a strong web presence. For us a $2 million project is a big project, but not huge.
I would hope their actual revenue is in the area of $5 mil, otherwise I don't see them making a huge profit on it.