Despite revenue growing 2%, net income went from +$23MM to -$288MM?? Yikes
Q4 2022 Q4 2021
Cost of revenue 481,311 449,151
Research and development 584,942 434,195
Sales and marketing 295,150 245,228
General and administrative 225,929 194,438
Total costs and expenses 1,587,332 1,323,012
Net income in particular is sensitive to one time events.
In this case, imo, it looks like the most important story is that revenue per user is falling hard. 17% more users. -15% revenue per user. Revenues are falling in North America and they have to try and make up for it by targeting the rest of the world.
Stock based comp directly dilutes shareholders, and using FCF hides the profitability hole that SBC creates for many of these companies.
FCF is more relevant for companies where net income adjustments are largely one time or moreso accounting gimmicky (depreciating real estate/assets to show a GAAP loss etc). SBC dilution is very real
So not sure why FCF matters from your perspective. They could clearly become net income positive by reducing costs, if it became necessary