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I think it's a great company but their risk factors section in their filing is fairly alarming: - We have a history of losses and we expect our revenue growth

by xpose2000 12y ago

I think it's a great company but their risk factors section in their filing is fairly alarming: - We have a history of losses and we expect our revenue growth rate to decline. As our costs increase, we may not be able to generate sufficient revenue to achieve and sustain profitability. - These investments may not result in increased revenue or growth of our business. We also expect that our revenue growth rate will decline over time. Accordingly, we may not be able to generate sufficient revenue to offset our expected cost increases and to achieve and sustain profitability. If we fail to achieve and sustain profitability, our operating results and business would be harmed.

xwowsersx 12y ago
Are there any filings that don't state such risk factors? Seems fairly boilerplate, no?
- djyaz1200 12y ago
  Yes boilerplate
- matthewmcg 12y ago
  Yes and no. In theory, the SEC's rules[1] require that the risk factors be things that are unique to the company (i.e. not risks that apply to stock offerings generally). The factors you mention are common among new companies but wouldn't be included for more mature companies. Sometimes these factors are helpful. Sometimes they seem to represent the product of a particularly imaginative lawyer or accountant. RSA once had a risk factor stating that if an efficient means of factoring primes were developed their business might suffer.[2] [1]http://www.law.cornell.edu/cfr/text/17/229.503 http://www.law.cornell.edu/cfr/text/17/229.503 [2]http://www.sec.gov/Archives/edgar/data/932064/000095013502001833/b41874rse10-k.htm http://www.sec.gov/Archives/edgar/data/932064/00009501350200... search "prime"
gatsby 12y ago
Very standard stuff: FB: http://www.sec.gov/Archives/edgar/data/1326801/000119312512034517/d287954ds1.htm http://www.sec.gov/Archives/edgar/data/1326801/0001193125120... (Page 18) Zendesk: http://www.sec.gov/Archives/edgar/data/1463172/000119312514137878/d665368ds1.htm http://www.sec.gov/Archives/edgar/data/1463172/0001193125141... (Page 4)

xwowsersx 12y ago

Are there any filings that don't state such risk factors? Seems fairly boilerplate, no?

djyaz1200 12y ago
Yes boilerplate
matthewmcg 12y ago
Yes and no. In theory, the SEC's rules[1] require that the risk factors be things that are unique to the company (i.e. not risks that apply to stock offerings generally). The factors you mention are common among new companies but wouldn't be included for more mature companies. Sometimes these factors are helpful. Sometimes they seem to represent the product of a particularly imaginative lawyer or accountant. RSA once had a risk factor stating that if an efficient means of factoring primes were developed their business might suffer.[2] [1]http://www.law.cornell.edu/cfr/text/17/229.503 http://www.law.cornell.edu/cfr/text/17/229.503 [2]http://www.sec.gov/Archives/edgar/data/932064/000095013502001833/b41874rse10-k.htm http://www.sec.gov/Archives/edgar/data/932064/00009501350200... search "prime"

gatsby 12y ago

Very standard stuff: FB: http://www.sec.gov/Archives/edgar/data/1326801/000119312512034517/d287954ds1.htm http://www.sec.gov/Archives/edgar/data/1326801/0001193125120... (Page 18) Zendesk: http://www.sec.gov/Archives/edgar/data/1463172/000119312514137878/d665368ds1.htm http://www.sec.gov/Archives/edgar/data/1463172/0001193125141... (Page 4)