Harvest is time tracking app, with invoicing, that I really like (not unlike Blinksale). I think it's the only subscription software that my business pays for. AFAIK it was started by two designers, and my guess is that they're doing well, because they keep adding new features and raising their prices. :)
I think they stopped consulting base on customer demand for BlinkSale... But I obviously don't know their costs. I'd wager they're profitable, or are sacrificing profit at the alter of growth in the near-term.