4 ms·
The 14 weeks of severance alone is probably worth ~$60 M [1] Scrounging on the web suggests that Stripe may be EBITDA-profitable but not GAAP-profitable. $60M
by ISL 4y ago
The 14 weeks of severance alone is probably worth ~$60 M [1]
Scrounging on the web suggests that Stripe may be EBITDA-profitable but not GAAP-profitable. $60M (perhaps double that with all the other benefits laid out here) is easily enough to delay GAAP profitability by a quarter or two. That may not seem like much, but it has a huge impact on investor sentiment.
[1] 0.148000200000*14/52
- pbreit 4y agoNo it doesn't. Especially with a 14% reduction in by far the largest expenditure.
- fredophile 4y agoHow does this delay GAAP profitability? They paid out 3.5 months severance and their full 2022 bonuses. If they hadn't laid these people off then in the next 3 months (1 quarter) they would have paid them 3 months salary and their full 2022 bonuses.
- ISL 4y agoIt delays profitability relative to simply laying employees off with more-traditional severance.