Startups

LYFT IPO - we may never be profitable!!

Nvidia chodanand
Mar 3

https://qz.com/1563655/lyft-ipo-filing-shows-a-history-of-losses-and-no-clear-path-to-profitability/amp/

"We have a history of net losses and we may not be able to achieve or maintain profitability in the future,”

Is there some Truth to it or standard as part of IPO filing ?

comments

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  • eBay
    seat

    eBay

    BIO
    Why did you click on me 😡
    seatmore
    Standard messaging in an S-1

    You have to warn investors of every potential situation

    Iirc, Snap, Box, and maybe even Amazon had the same messaging
    Mar 30
  • Lyft swetool
    Will always be woke
    Mar 30
  • Stripe ten nines
    Literally every S-1 has this language. This risks section has to be as pessimistic as possible to disclaim liability.
    Mar 32
  • Uber isu
    Clickbait website needing to bait clicks to earn their 1 cent per page view from ads. Looks like it works quite well.
    Mar 30
  • Uber kngfi
    Standard statements of risk. Google's S-1 stated as a risk that people may stop using the internet.
    Mar 30
  • OnDeck GPgj02
    Queue the layoffs 🔥
    Mar 30
  • Amazon Cynimist
    That verbiage is stock standard and in itself not a concern. What is a bit concerning is losing $911M on $2.2B in revs with market growth overall slowing and unit economics are still crappy. They spent over 800M in marketing to get that 2.2B in revs and adjusted EBITDA margin (cash flow proxy) is improving but still -44%. This is a pretty bad state to be going public in, honestly. They are desperate to IPO, for sure.
    Mar 33
    • Amazon LoanerBadg
      I am interested in learning more about the stuff you talk about. Are there any good books?
      Mar 3
    • Amazon Cynimist
      Investments by Bodie Kane and Marcus. Then maybe Financial Statement Analysis: A Practitioners Guide. Or other books on the topic. Those should be good starters.
      Mar 3
    • Amazon LoanerBadg
      Thanks
      Mar 3
  • Pinterest JEJM77
    Standard part of IPO filings for companies that have never or rarely turned a profit. Companies that are consistently profitable will still have a statement about how they may stop being profitable after IPO.
    Mar 32
    • Snapchat AQTG64
      Look at us
      Mar 3
    • Microsoft slj4
      Yes we are seeing the stock price
      Mar 3
  • $5B investment to build a perceived $20 valuation. Don’t think they did a good job. I could probably do better lol.
    Mar 30
  • LabCorp / IT
    [🗿]

    LabCorpIT

    PRE
    Amazon
    [🗿]more
    Honesty !
    Mar 30
  • Apple VgahFff23
    Garbage 🗑
    Mar 30

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