How long before being in the red becomes a red flag?

Zymergen / Other aGVa04
Dec 8, 2019 10 Comments

Most tech companies aren't profitable in their first year. Understandable. My question is this: how many years of losses before it gets worrying for the long term state of the company?

I ask because I see a company making 9 figure revenues and losing 8 figures in profit each year, founded 12 years ago


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TOP 10 Comments
  • Salesforce horsepla
    Aren’t all the ride share companies like this?
    Dec 8, 2019 2
    • Zymergen / Other aGVa04
      Dec 8, 2019
    • Zymergen / Other aGVa04
      Yes, so at what point do you say it's hosed?
      Dec 8, 2019
  • Are the losses caused by massive reinvest to drive top line growth or market share gain or are they selling a dollar for fifty cents?
    Dec 8, 2019 3
    • Uber fgd135
      Dig into the quarterly filings
      Dec 8, 2019
    • If the company is public, read the 10-k filing.
      Dec 8, 2019
  • Netflix the.oa
    5 years. I’d be looking for the exit door after that.
    Dec 9, 2019 0
  • Amazon TCtothaMAX
    5 years
    Dec 8, 2019 0
  • Microsoft megamanX
    When a recession hits is when capital dries up and results are demanded
    Dec 8, 2019 0


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