[Mengkudulangsat]

So many of these new S-1s are unprofitable, where does the money all go?

I'm beginning to wonder if entire unicorn ecosystem is just a funnel to subsidize ad / infrastructure / payment rail revenues at the leading providers.

[f0ff]

There's little reason for a company owners to dilute their holdings with an S-1, if they are already profitable and don't have huge investments planned ahead.

[thehappypm]

Woah I had never considered that before. I bet there are tons of private companies out there just absolutely printing profits for a small number of internal shareholders that we just don't really know about.

[soniman]

Did you miss the part where it said that it's been net profitable? "net cumulative cash flow from operations of $16 million from January 1, 2017 to September 30, 2020"

[vetinari]

That part does not mean what you think it means. Cash flow, negative working capital and profitability are separate things. In the end, they are generating loss.