4 ms·
Profitable minus CapEx on a capital intensive company seems like some creative accounting. They’re going to need a path to real growth or their next raise is go
by mikeryan 7y ago
Profitable minus CapEx on a capital intensive company seems like some creative accounting. They’re going to need a path to real growth or their next raise is going to be a down round.
- trevyn 7y agoThey include depreciation in the calculation, so it's not that bad.
- Cacti 7y agoNot bad? It’s _worse_. They’re not depreciating servers here that they got use out of, they’re depreciating scooters that are broken, stolen, missing, or otherwise falling apart. Considering this is their fundamental business, it’s pretty bad.
- kgwgk 7y agoWhere does it say it’s “Profitable minus CapEx”?
- mikeryan 7y agoSorry “break even” The company is projecting solid growth in the summer months, when it expects to break even, excluding capital expenditures.
- kgwgk 7y agoThanks, I missed that. It seems difficult to go from a $100mn loss to breakeven so quickly if the cost-cutting measures are like reducing staff by 5% but it’s not clear where that $100mn loss was coming from (includes a “one-time” write off) and it’s not clear what do they mean by break even either.
- Cacti 7y ago“We’d be making tons of money if we just didn’t spend so much.”