Most SaaS companies are losing money Wonder how
Post# of 32627
Wonder how the market reacts to that?
Most SaaS companies spend more acquiring customers their 1st year then they take in
I posted that the other day
Many companies raise money
Even the biggest profitable blue chip companies raise money
Many of the biggest companies have debt
Now stop for a moment and ask yourself why?
Why would even a fortune 100 company do that?
Maybe it's the same reason why someone that can afford to pay cash for a house, takes a loan out?
Or the company doesn't have cash laying around, but sees a great opportunity?
Or the company has people banging down their door for more?
Heard on the news today Uber is "hoping" to be cash flow positive this year.
How much did they raise?
I guess that is what they "intend" to do
Lyft is "hoping" to be cash flow positive next year
How much did they raise?
I guess that is what they "intend" to do
BTW, Lyft announced yesterday net loss for fiscal year 2019 was $2.6B versus a net loss of $0.9B in fiscal year 2018.
Oh, that's 3 time last year and yes, that is billions
They said a lot of it was Net loss for stock-based compensation and related payroll tax expenses.
OMG, they are losing billions and giving away stock?
Wonder when the market will react to that
So far, their market cap is almost $15B last time I checked
Why aren't the full-time message board financial gurus trying to safe them as well?
You see, it's so easy to bash any stock
Just about as easy too do a class action
Oh, say it isn't so...
https://finance.yahoo.com/news/deadline-alert...00739.html
Oh, not Lyft too...
https://finance.yahoo.com/news/final-deadline...00162.html
What's the chances they both have a CA?
Oh, I'd say, about the same as every technology company.
Just a little tip
Get this, there are bashers that haven't worked a real job in decades trying to give you investment advice
That is why you shouldn't get your financial advice off a message board
Now Shark Tank a different story
They like to invest in companies that have a backlog of customers or orders
Does VERB?
I hear they are on Fire
Wonder what happens when DS Mobile is available to millions of users and that is just one of the things they are working on.
In Rory's last interview he talked about accelerating growth by adding new people and to do it judiciously so you are never incurring more cost then you are getting a return on
To some, taking on debt or financing whether to stay in business or to accelerate the business is the same thing.
Not to me, but talk to your financial advisor about Salesforce, Hubspot and other CRM companies how they grew and acquired a bunch of companies.
Oh, and Rory also said they are looking at a couple of companies right now
The real world doesn't take IOUs and that is why funding or stock is necessary to grow in my opinion of following Salesforce for over 20 years.