* Gross margin: 80% (hey this one is pretty good)
* Operating margin: -62%
* Net margin: -57%
* Return on Equity: -22%
* Return on Invested Capital: -21%
Their sales and marketing is pretty bloated and is destroying all of their gross profit alone.
Their stock seems to be priced on the hopes and dreams that they'll grow revenue out of their current problems before they run out of cash. But the headline and the reactions here show how they're trying to do that.
That is not too unusual for software companies on IPO, lots of them paying $5 to acquire $1 in revenue. I think the common justification is that new customers will stick around for years.
Their sales and marketing is pretty bloated and is destroying all of their gross profit alone.
Their stock seems to be priced on the hopes and dreams that they'll grow revenue out of their current problems before they run out of cash. But the headline and the reactions here show how they're trying to do that.