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Reddit’s IPO Filing Shows Lots Of Losses After Nearly 20 Years (www.forbes.com)

submitted 9 months ago by Clbull@lemmy.world to c/technology@lemmy.world

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[-] EndOfLine@lemmy.world 147 points 9 months ago

There are 54 pages of risk factors, which, after reading many S-1 filings over the years, seems pretty long. One of the most notable is the sentence, “We have incurred substantial losses during our history and may never achieve profitability.”

Well that doesn't sound very promising for them.

[-] ApeNo1@lemm.ee 22 points 9 months ago

This does not stop companies being successful in IPOs and giving share holders lucrative gains. Take Atlassian as an example of a company seen as successful but is not profitable.

Atlassian has not yet posted a full-year profit in its 20+ years

[-] andrewrgross@slrpnk.net 17 points 9 months ago

What does that mean? Who pays the shortfalls?

[-] ApeNo1@lemm.ee 13 points 9 months ago

I am not a CFO but I believe essentially by eating into cash reserves and accumulating debt. Also there is some wizardry when you work out operating profit / EBIT.

Earnings vs Debt

Someone more financially competent may want to offer a more accurate answer.

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this post was submitted on 28 Feb 2024

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