[RichardKim]

Please keep in mind, most secondaries are done like a IPO except its secondary shares not primary. Bankers line up a set of buyers to sell in blocks (usually at a discount but not as much as IPO discount) in order to help with the massive liquidity inflow.

Also, they can't dump their entire stake. Usually IPOs of tech companies get to dump around 25% max of top mgmt stake in its first secondary offering and bankers will advise companies to usually wait 3-6 months to dump another stake and so forth especially for companies with low barriers to entry. So the entire process takes a decently long time not one month or quarter.

Management dumping so much ahead of IPO is very suspicious and /or at the very least it may imply they have no conviction in their core business model. I mean companies go public to raise money to propel growth. It should help pump up the share price. On top of that, original IPO budgets given to banks are usually conservative so that MGMT doesn't miss guidance for the first 4-6 quarters until they can dump all of their shares. The fact that in their first quarter they missed their own guidance suggests the business is in a whole lot worse shape than even what the company expected. That's bad news.