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Comment by bluetidepro | Hacker News Reader

I don't understand a ton about these documents, but I do always enjoy reading the "RISK FACTORS" that they have to include. Here is the link to them on here: https://www.sec.gov/Archives/edgar/data/1764925/000162828019...

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> We have a history of net losses, we anticipate increasing operating expenses in the future, and we may not be able to achieve and, if achieved, maintain profitability.

Well, that doesn't sound too good.

Obligatory “this is literally boilerplate language used in every S-1 filing” comment.

Obligatory “this may be boilerplate nowadays, but there is nothing traditional about unprofitable companies making public offerings” comment.

Edit: I stand corrected. https://www.wsj.com/articles/red-ink-floods-ipo-market-15383... provides historical context that this is not a new phenomenon, though it is more common than ever.

They are already profitable. They're just warning it's possible they might become unprofitable. Just like any other company.

They have operated at a net loss for the past 3 years - this is simply untrue.

Sorry, misread another post.

No, they're not already profitable. From the document on which we're commenting:

"...we incurred net losses of $146.9 million, $140.1 million, and $138.9 million in fiscal years 2017, 2018, and 2019, respectively."

My bad, I misread another post.

Going back to 1980, over 20% of companies going public each year have had negative earnings in the prior year. It’s hardly unheard-of.

https://www.datawrapper.de/_/K02zm/

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