[__blockcipher__]

This is a false narrative. Both Elastic and Amazon are making a killing.

> Elastic (NYSE: ESTC) ("Elastic"), the company behind Elasticsearch and the Elastic Stack, announced strong results for its fourth quarter and full fiscal year (ended April 30, 2021). Total revenue was $177.6 million, an increase of 44% year-over-year, or 39% on a constant currency basis.

[Godel_unicode]

Is that true? Let's examine this claim a bit more closely. Net profit margin for the quarter -24.38%, net income for the quarter -43.3M, sales growth slowing by double-digit percent every year since 2018.

It's possible to take in a ton of money and still lose money.

[Mikeb85]

I'm gonna go out on a limb and say if they're losing money with $177 million in revenue it's because they're expanding quickly, made a bunch of acquisitions, etc... No way they're losing money on operations.

Edit - just looked it up, they have free cash flow for the year and a $400 million cash position. Tons of deferred revenue too.

[jimmydorry]

Revenue only tells us how much business they conducted, not how much of a "killing" they made. Profits is what would tell you that, which I guarentee are going to be far less than their $177.6 million in revenue.

[ethbr0]

You don't have to guess: they're a public company.

https://finance.yahoo.com/quote/ESTC/financials?p=ESTC

[edoceo]

Look for Normalized EBITDA. It's -121! A negative number isn't really killing it. Unless your growth number is poppin!