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> We have a history of net losses, we anticipate increasing operating expenses in the future, and we may not be able to achieve and, if achieved, maintain profi
by cocochanel 7y ago
> We have a history of net losses, we anticipate increasing operating expenses in the future, and we may not be able to achieve and, if achieved, maintain profitability.
Well, that doesn't sound too good.
- rwc 7y agoObligatory “this is literally boilerplate language used in every S-1 filing” comment.
- btown 7y agoObligatory “this may be boilerplate nowadays, but there is nothing traditional about unprofitable companies making public offerings” comment. Edit: I stand corrected. https://www.wsj.com/articles/red-ink-floods-ipo-market-1538388000 https://www.wsj.com/articles/red-ink-floods-ipo-market-15383... provides historical context that this is not a new phenomenon, though it is more common than ever.
- icebraining 7y agoThey are already profitable. They're just warning it's possible they might become unprofitable. Just like any other company.
- btown 7y agoThey have operated at a net loss for the past 3 years - this is simply untrue.
- icebraining 7y agoSorry, misread another post.
- pwinnski 7y agoNo, they're not already profitable. From the document on which we're commenting: "...we incurred net losses of $146.9 million, $140.1 million, and $138.9 million in fiscal years 2017, 2018, and 2019, respectively."
- icebraining 7y agoMy bad, I misread another post.
- didgeoridoo 7y agoGoing back to 1980, over 20% of companies going public each year have had negative earnings in the prior year. It’s hardly unheard-of. https://www.datawrapper.de/_/K02zm/ https://www.datawrapper.de/_/K02zm/