> We have a history of net losses and we may not be able to achieve or maintain profitability in the future.
This is boilerplate and isn't notable. [0]
This is boilerplate and isn't notable. [0]
It's only not notable because if you've even skimmed the rest of the S-1, you already know whether they make money or not. If you haven't, it's possibly the most notable thing there. It's the single bit of information that tells you most about the company's historical financial performance.
Every investor is looking for a diamond in the rough.
2018: $97.2m
2019: $86.0m
2020: $203.2m
LTV models are really, really hard to get right though, and I've seen a bunch of startups go bust because of getting this wrong.
The big, falsifiable assumption here is that your acquisition sources will keep sending you users of the same quality. Because of the way that ML systems work, this tends to not be true, and if you are using long windows it will both take you a long time to realise this, and cost you a bunch of money.
This is normally how companies go bust/stop growing as a result of LTV models.