In parallel to this growth of topline and increasing efficiencies, our gross loss ratio declined steadily from 161% in 2017, to 113% in 2018, to 79% in 2019 and to 72% for the three months ended March 31, 2020. See "Management's Discussion and Analysis of Financial Condition and Results of Operations — Key Operating and Financial Metrics."
Seems like a struggle to get to profitability. With the ratio of closing the gap slowing, sure looks like it's getting harder. This is what bugs me about these companies, after years of running the business and doing 1 Billion in revenue it's still a coin flip whether they will ever be profitable. How is this any different from the first "Internet Boom" except that they've been floated to a much bigger revenue number by VC losses.
So now the VCs want return on investment. The public is getting a chance to buy, and some will, and the VCs make out, the founders probably already did by selling to the VCs, but where is the value creation? Just a shell game.
Seems like a struggle to get to profitability. With the ratio of closing the gap slowing, sure looks like it's getting harder. This is what bugs me about these companies, after years of running the business and doing 1 Billion in revenue it's still a coin flip whether they will ever be profitable. How is this any different from the first "Internet Boom" except that they've been floated to a much bigger revenue number by VC losses.
So now the VCs want return on investment. The public is getting a chance to buy, and some will, and the VCs make out, the founders probably already did by selling to the VCs, but where is the value creation? Just a shell game.