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There's a breakdown of their spending in their S-1 filing [1], under Consolidated Statements of Operations. According to this, they could be profitable if they
by jsnathan 12y ago
There's a breakdown of their spending in their S-1 filing [1], under Consolidated Statements of Operations.
According to this, they could be profitable if they wanted to be, but they are using their profits and re-investing in growth.
E.g. they more than doubled their spending on marketing from $17.8m to $39.6m from 2013 to 2014.
[1]: http://www.sec.gov/Archives/edgar/data/1370637/000119312515077045/d806992ds1.htm#toc http://www.sec.gov/Archives/edgar/data/1370637/0001193125150...
- mason55 12y ago> According to this, they could be profitable if they wanted to be, but they are using their profits and re-investing in growth Which is one of the things that differentiates a startup from a lifestyle business. It's the whole point of taking funding and trying to accelerate growth.
- aries1980 11y agoFor Lifestyle businesses growth is also a priority. But margins like -715.90%(!!!) (Hortonworks) or -54.87% (New Relic) shows massive immaturity as a business. Post-IPO businesses in such early-stage has a big threat to the tech industry. If they fail (there is a big chance to bankrupt within a year without funding, according to their financial metrics), they make more hard to float for other companies later.
- deleted 12y ago[deleted]