Earlier quoted context omitted.
I'm somewhat on top of the stock, here's my not financial advice take: 1. Growth rate slowed such that valuations had to come down (went from inevitable overtaking of Salesforce in size, to decades of growth required) 2. Environment -- Cashflow negative meaning another raise was required without fiscal controls and in a high interest environment that's really tough. A return to office end of covid anxiety meant the C…
> Environment -- Cashflow negative meaning another raise was required without fiscal controls The company was founded almost 20 years ago, and went public in 2016..and they are still needing to raise money? I mean, this isn't a capital intensive space, right? What's the deal?
Software isn’t capital intensive the way a large industrial factory would be, but it still has unfavorable financial conditions that require raising. You can’t sell software until you’ve built it, so you have to incur a large employee/R&D expense for years until the product is ready. And of course none of that is IP that you can just get a loan against (unlike say, building a factory).