They went from growing at 60% YoY in 2017 with an 8% Operating Loss, to growing 43% YoY with an Operating Loss of 44%.
To put it another way, in 2018 they grew their revenue 40% (+$58m) and grew expenses 100% (+$115m).
I mean, apparently they raised a huge round and felt the need to increase spending massively. And then saw slowing growth as a response?
Was there a massive boost in R&D output? Entering entirely new product lines? My uneducated impression is that they offer largely the same product this year as they did last year.
The only thing I can think of is that they went from “scrappy startup” to “bloated unicorn” status?
After all, if you are already on eg AWS, just using Cloudfront is temptingly easy. (even if bad from a redundancy perspective)
IMO this is giving way too much credit to AWS
> We have experienced significant growth, with our revenue increasing from $84.8 million in 2016 to $134.9 million in 2017 and to $192.7 million in 2018, increases of 59% and 43%, respectively. As we continue to invest in our business, we have incurred net losses of $17.3 million, $10.7 million, and $87.2 million for 2016, 2017, and 2018, respectively. For the six months ended June 30, 2018 and 2019, our revenue increased from $87.1 million to $129.2 million, an increase of 48%, and we incurred net losses of $32.5 million and $36.8 million, respectively.
Compared to the numbers we've seen for recent tech IPOs, being on track to lose about $72M for 2019 seems reasonable.
Also, haven't read through it all but I'm curious how strong this clause will be for future control:
> The dual-class structure of our common stock will have the effect of concentrating voting control with those stockholders who held our capital stock prior to the completion of this offering, and it may depress the trading price of our Class A common stock.