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Insane is right. They lose that much money, and don't have a plan for profitability. If you lose money on each customer and scale the business...well, uh, loss
by moxious 10y ago
Insane is right. They lose that much money, and don't have a plan for profitability. If you lose money on each customer and scale the business...well, uh, losses scale too.
I guess I'm just old fashioned, here I thought the point of businesses was to make money, at least eventually.
This quote is a killer: "We have incurred operating losses in the past, expect to incur operating losses in the future, and may never achieve or maintain profitability." haha
- mikeyouse 10y agoAll of the same criticisms could be applied to YouTube, Facebook, Instagram, etc while they were at that stage. Some turn out to make pallet-fulls of money, some (Twitter) never quite crest. The quote at the end is just boiler plate language they need to include in their S1 so they aren't sued by shareholders in 10 years.
- moxious 10y agoPretty sure those other companies declared an intention to make a profit. Saying the opposite is indeed news. And sure, the company might turn the corner. But seriously why would investors pay $3 billion with a pitch like this? I guess they're just playing other investors in the end. There seems neither money making capacity here nor the promise of it by their own admission. Are you saying we should ignore their clear words on this topic and decide the management is wrong and they'll probably end up profitable?
- ilyanep 10y agoIt's a risk factors statement, not an intent statement. They also aren't seeking to have anything else in that list become true.