fbpx

Type to search

Snapchat, Uber and more billion dollar companies that aren’t profitable

Tags:

Snapchat, Uber and more billion dollar companies that aren’t profitable

Share

Snapchat is just one of many tech companies worth billions of dollars that has never turned a profit. Instead, these startups pour money raised from investors back into growth, losing money yearly.

But while startups frequently aim to convince investors that they’re the next Facebook or Amazon, such success stories are rare, and questionable paths to profitability can doom startups. WeWork’s attempt at going public in September failed after investors were unconvinced by the company’s plan to turn around its cash-burning trajectory. Nonetheless, investment data shows that backers are increasingly willing to support startups that remain unprofitable for long periods of time.

SNAPCHAT

Year founded: 2011

Current valuation: $21.7 billion

Net loss in 2018: $1.3 billion

Uber

Year founded: 2009

Current valuation: $50.4 billion

Net loss in 2018: $1.8 billion

Pinterest

Year founded: 2009

Current valuation: $10.9 billion

Net loss in 2018: $63 million

While Pinterest has never had a profitable year, it did achieve profitability in the third quarter of 2019, it noted in a shareholder letter.

Spotify

Year founded: 2006

Current valuation: $25.8 billion

Net loss in 2018: $78 million

Tesla

Year founded: 2003

Current valuation: $59.3 billion

Net loss in 2018: $976 million 

Tags::

You Might also Like

Leave a Comment

Your email address will not be published. Required fields are marked *