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Then again, that's what was said about Dropbox - Google was about to eat their lunch any day now. Yet they're still around and still growing quite a lot.

scarface74 8y ago
Not a great example.... https://qz.com/1214822/dropbox-is-filing-for-a-500-million-ipo-while-warning-it-may-never-be-profitable/ https://qz.com/1214822/dropbox-is-filing-for-a-500-million-i... The company’s prospectus warns it has “a history of net losses”; anticipates increasing expenses and slowing revenue growth; and notes that it “may not be able to achieve or maintain profitability.”
- icebraining 8y ago
  Eh, that's just the typical IPO prospectus, all doom and gloom. They're at billion-dollar revenue, still grew 30% in a year, and are cashflow-positive.
  - scarface74 8y ago
    MoviePass also saw increasing revenues when they dropped the price from $50 to $10.... As far as being “cash flow positive”.... https://www.cnbc.com/2018/03/21/dropbox-may-have-intentionally-overstated-its-free-cash-flow.html https://www.cnbc.com/2018/03/21/dropbox-may-have-intentional... A closer look at its financial statement shows the online storage company's free cash flow would have remained negative that year had it followed a more conservative accounting method shared by some of its main competitors. That's because Dropbox didn't include principal payments for its capital leases in its free cash flow statement. If Dropbox had accounted for the $139.5 million in capital and financing lease payments in 2016, it would have recorded negative $2.1 million in free cash flow that year — instead of the $137.4 million positive free cash flow it disclosed. Its free cash flow for 2017 would have been $169.7 million under this method, almost half of the $305 million it disclosed in its filing. These are real expenses, that would be like me telling my wife that we would be cash flow positive with our current income if we moved to Seattle - as long as we don’t include rent.

scarface74 8y ago

Not a great example.... https://qz.com/1214822/dropbox-is-filing-for-a-500-million-ipo-while-warning-it-may-never-be-profitable/ https://qz.com/1214822/dropbox-is-filing-for-a-500-million-i... The company’s prospectus warns it has “a history of net losses”; anticipates increasing expenses and slowing revenue growth; and notes that it “may not be able to achieve or maintain profitability.”

icebraining 8y ago
Eh, that's just the typical IPO prospectus, all doom and gloom. They're at billion-dollar revenue, still grew 30% in a year, and are cashflow-positive.
- scarface74 8y ago
  MoviePass also saw increasing revenues when they dropped the price from $50 to $10.... As far as being “cash flow positive”.... https://www.cnbc.com/2018/03/21/dropbox-may-have-intentionally-overstated-its-free-cash-flow.html https://www.cnbc.com/2018/03/21/dropbox-may-have-intentional... A closer look at its financial statement shows the online storage company's free cash flow would have remained negative that year had it followed a more conservative accounting method shared by some of its main competitors. That's because Dropbox didn't include principal payments for its capital leases in its free cash flow statement. If Dropbox had accounted for the $139.5 million in capital and financing lease payments in 2016, it would have recorded negative $2.1 million in free cash flow that year — instead of the $137.4 million positive free cash flow it disclosed. Its free cash flow for 2017 would have been $169.7 million under this method, almost half of the $305 million it disclosed in its filing. These are real expenses, that would be like me telling my wife that we would be cash flow positive with our current income if we moved to Seattle - as long as we don’t include rent.