Well, all companies want one. Early stage companies usually hemorrhage big dough in the early years. Like...they might lose $3 mil the first year, $12 mil the second, $25 mil the third. Something like that. But with big revenue growth, they can keep raising money at favorable valuations.
At the end of the day though, revenue alone doesn't to it. Companies need earnings. Earnings drive stock prices. So eventually, the company will need to articulate a path to profitability after burning whatever dough they can burn to build or disrupt or create a new industry.
And just by association, Uber will have burned some 10 billion dollars before it will ever have been profitable. And yeah, the path doesn't necessarily have to be a short one.
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Finance: What is a profit center?2 Views
Finance a la shmoop what is a profit center? well here's a profit center and
here's a profit center yeah Google search is where Google makes like a [Google search of profits appear]
hundred forty-two percent of its profits so search for Google is its profit
center in fact if it weren't for its search engine well Google would actually
be losing money YouTube loses a billion dollars a year
depending on how you do the math Google Maps loses 100 million or so everything
else loses a few billion a year and search makes thirty billion dollars a
year annually yeah per year that's what it means
so more than makes up for everything else that's its profit Center and
without that profit center generating profits or cash to fund all these other [Man playing guitar with VR]
wacky ideas the driverless cars our favorite while Google would just be
searching for a way to make money but it doesn't it found it it's called search...
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