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Why are the top line numbers shown from 2018 to 2020? If I had to guess, it would be because 2018-2019 showed the most growth while 2019-2020 showed less, and t
by robbiemitchell 5y ago
Why are the top line numbers shown from 2018 to 2020? If I had to guess, it would be because 2018-2019 showed the most growth while 2019-2020 showed less, and they want to show good % changes.
- ABeeSea 5y agoYou would be correct. On page 18, 2019 revenue was 193M and 2020 was 219M, growth of only 13%.
- farmerstan 5y agoNo. All S1s do it this way for some reason. My wife just worked on an S1 and had a similar comment but she investigated other S1s and saw that was just how it was done.
- neom 5y agoIt's because the gold standard for IPO 8 quartners with sustained growth.
- robbiemitchell 5y agoBut showing two data points doesn't actually demonstrate sustained growth. Showing quarterly or at least annually would get closer. Showing two data points could mask growth in year one and losses in year two.
- tinyhouse 5y agoGood observation. That's not th standard as people here claim. Companies often play such games. Esp to make their IPO look attractive. I went over Squarespace S-1 today who IPOed in May and saw they claim around 70% revenue growth in commerce from 2019 to 2020. Then somewhere in the document you find that they acquired a company in March 2021 but they include their revenue in their 2020 numbers. So the 70% growth is not really organic growth and they don't mention anything about the growth of the acquired company (Tock).