Why? Net loss for the quarter is $422M, of which $318M is stock based compensation to employees. With ~5,000 employees that averages out to $252k per year per employee in RSUs alone. What is going on? How do you have an increase in daily active users, and revenue, but net losses continue to grow?
Time for layoffs and reduce some of that burn
Even if they stopped giving their employees RSUs, and those employees miraculously chose to continue working, they’d still be losing over $400,000,000 per year. 🧐
How? You said 312M out of the 400M is stock based compensation. If they cut that in half, the loss will be around 250M?
As to stock approaches 0 so will their cost of RSUs! Their cost is down 25% in the last 3 hours alone.
I predict the same fate for all the other “hot” companies, Uber, Doordash, Roblox, Instacart, etc Thin margin, cannot make profit, have to pay huge 💰to retain talents. Only in a niche market. Once the growth is over, the company is over
Their monetization is absolute garbage. Have you used the app? You can just swipe past the ads. Add to that the ads themselves absolute garbage and then throw in the flaming heap of shit the “discover” section is. How do you think they’ll ever make money?
It means the unit margin is compressing. Cost per new user is approaching their LTV
We hired a ton of leadership instead of growing existing leadership. These leaders make 1 mil TC each.. layers of leadership management that don't do anything
^^^^ exactly.
Its just bad app. It used to be good.
Bad app would suggest DAU decreasing but it’s still climbing YoY
Fake users