TSXV:ART.H - Post by User
Comment by
SunsetGrillon Feb 04, 2022 11:39am
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Post# 34397823
RE:RE:RE:RE:RE:RE:RE:competition or technological validation of competitor
RE:RE:RE:RE:RE:RE:RE:competition or technological validation of competitorI agree on the profitablity, not a key metric for a growing company Amazon only became profitable a few years ago. Lightspeed still waiing for that day 17 years now. But significant rising cash flows are needed for CURRENT shareholders. Otherwise, raises (such as the one coming) have to done at a dirt cheap evaluations. If cash flows are rising funds can be generated at significantly higher valuations.
You have Mr. Wonderful (Kevin Oleary) on the other side of that table - what would he say to a company needing money, with stable cash flows and no profit? Answer: sure I will give you money but i want 70%. Basically your bent over the table.
We will see what happens next raise, hopefully cash flows go up quite a bit before they have to put their hand out.
Synthesizer303 wrote: Sunset, within my assumption all you're saying is in, so basically if wework maybe keeps 30% of revenue, its not unrealistic that 5000$ is left per week and location for Arht, its quite a moderate assumption.
Also don't be in worry too much about being profitable for growth and raise of money, in fact whether you nor i know about the conditions for the installations, but i could imagine wework has to pay an initial amount at the order of equipment, so Arht doesn't need a lot of free cash for the rollout.
Apart from this it's obvious they need to raise money, its not uncommon and lots of fast growing startups are in red numbers, even big players are, like Tesla was not profitable at multiple unicorn status, so no problem at all as long revenue growth and adoption is given;-)