Comments on: Does Profitability Matter for IPOs?

By: SaaS Profitability - SaaS Company is as SaaS Customer Does | Chaotic Flow by Joel York

Tue, 09 Feb 2010 14:08:43 +0000

[...] Hand Over Fist, and this really cool analysis by Christian Chabot of tech IPOs comparing software companies that were profitable to those that were not profitable at the time of their IPO. And, I’ve certainly made no secret of my own opinion in posts like this one entitled SaaS [...]

By: Brennan Sherry

Brennan Sherry — Thu, 17 Sep 2009 04:53:57 +0000

I’m not sure if you can make the conclusion “Unprofitable Companies Actually Did Better, At First” when you take include the insanity that was going on during the tech boom of the late 90s. At that time, ‘everything was going to be different on the web’ and you could IPO being uprofitable and get tremendous returns at first (until the crash came). If you remove the 90s and just look at the 80s and 00s, unprofitable IPOs were only similar to profitable IPOs for about 6 months, and then got blown away.

By: efields

efields — Wed, 16 Sep 2009 20:18:41 +0000

Sorry about that! Link fixed now. Thanks for reading.

By: Andrew Jones

Andrew Jones — Wed, 16 Sep 2009 18:06:56 +0000

Good post although your link in article to top-100 sample did not work. It makes hard to justify the numbers to make sure the theory is correct