4 ms·
Obligatory “this is literally boilerplate language used in every S-1 filing” comment.
by rwc 7y ago
Obligatory “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/