Path To Profitability (P2P)

  

Categories: Company Management

Well, all companies want one. Early stage companies usually hemorrhage big dough in the early years. Like...they might lose $3 mil the first year, $12 mil the second, $25 mil the third. Something like that. But with big revenue growth, they can keep raising money at favorable valuations.

At the end of the day though, revenue alone doesn't to it. Companies need earnings. Earnings drive stock prices. So eventually, the company will need to articulate a path to profitability after burning whatever dough they can burn to build or disrupt or create a new industry.

And just by association, Uber will have burned some 10 billion dollars before it will ever have been profitable. And yeah, the path doesn't necessarily have to be a short one.

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