It's not uncommon for a company that could have been profitable to instead choose to invest in getting even bigger reach, and potentially getting an even bigger

It's not uncommon for a company that could have been profitable to instead choose to invest in getting even bigger reach, and potentially getting an even bigger profit down the road - and VCs tend to press hard for this course. For some (many even) it's unsustainable and kills off what would otherwise have been a nice million dollar company in an attempt to turn it into a billion dollar company. But for some it works out, and the investments do really pay off - and they do so massively. So long story short, it's quite possible for a company to run at a loss for years, but be able to turn a profit at any time, if they just ease their foot off the pedal. Others really are burning through more money than they'll ever know how to recoup. But you really need to dig into the details to tell the difference.