3 ms·

They're growing but not profitable. It's easy to grow by giving valuable stuff away below cost. It's not so easy to grow if you're making positive margin. Give

• bonestamp2 7y ago
  > why are they losing money? I don't know for sure, but I would guess it's their aggressive expansion efforts. Those might cost more than they've returned so far. If that is the case, and since their GM is so high, they should be profitable once buildout costs start to plateau.
• vikramkr 7y ago
  Looks like a lot of it is sales and marketing expenses which probably help drive growth, their gross margin is pretty great, I think that the key to profitability for them now is a high enough retention rate that they can turn down sales costs when they saturate the market