Tech companies are focused around asset growth, which is more easily converted to profit. The profit margins are usually huge, so profiting is rarely ever the problem. Revenue usually is. They have a lot of cash and it's easy to cut costs too.
From the linked article, it says, "In 2018, 81% of U.S. companies were unprofitable in the year leading up to their public offerings."
This is the most unfair way of judging it. This is like saying students have a negative net worth a year before graduation. It's missing the point - students take debt so they can make much more money later. Startups go cash heavy and take losses so they can make money after the exit.
From the linked article, it says, "In 2018, 81% of U.S. companies were unprofitable in the year leading up to their public offerings."
This is the most unfair way of judging it. This is like saying students have a negative net worth a year before graduation. It's missing the point - students take debt so they can make much more money later. Startups go cash heavy and take losses so they can make money after the exit.