[ffgjgf1]

> slightly better than operating cashflow neutral

Only because they are issuing massive amounts of stock (IIRC ~15% per year) to pay their employees and not doing any buybacks. How sustainable is that?

> It's growing at a very healthy rate

The problem is that it’s not. YoY growth they reported yesterday was -2% and they are also guiding for negative growth next year.

[danielmarkbruce]

Sheesh, I haven't watched closely for a couple qtrs and only saw the headline. You are right.

[brutus1213]

Can you explain the "issuing stock to pay people"? 15% per year sounds quite a bit to me .. is this the norm in Silicon Valley? I presume this in the 10K?

[danielmarkbruce]

A good portion of compensation is in stock. There is nothing wrong with it per se. It shows up on the income statement as an expense - all good. But then when people quote "operating cashflow" the company has added back that expense because it wasn't in cash. So the quoted operating cashflow (which in theory should be "real") becomes more fake from an economic viewpoint.

It's not bad, you just have to be aware of it. It's in the k - right there in the income statement (the opex lines will all have some % which is equity) and cashflow statement (the operating cashflow calc explicitly has a line for it).