Hacker News Reader

They just paid income tax?

You can still be heavily cash flow negative while being Net Income positive. It's actually one of the big use cases for VC money; you have a flywheel of revenue but not enough cash to pay to service that revenue and actually get cash.

Previously, they’ve stated that they raised merely to give customers confidence that they are in it for the long haul. You don’t want to buy racks from a company that won’t be around tomorrow. Raising money is likely being used to create a war chest, with some amount of it being used to grow the team and operations, to fill demand, and support their customers. Those functions have to grow sustainably, but the demand also signals to investors that it’s working, and continued investment is a good move.

In reality, it could very well be investors just saying “we’re so happy with how things are going, we want more, take our money!!!”

Well they are not, but this is a startup that's actually buying/creating computer hardware and the most expensive and competitive time in history to source it.

The economics are going to look different than all the sloppified enterprise SaaS startups that charge crazy amounts for a crappy data lake product on S3.