Just looking through some old S-1's.
This has quite a bit of survivorship bias, but I think it's fascinating.
All of these numbers are right before the companies IPO'd.
We'll start with Google...
This has quite a bit of survivorship bias, but I think it's fascinating.
All of these numbers are right before the companies IPO'd.
We'll start with Google...
1/ I think that's the definition of product-market fit.
More than 10x growth in 2 years. 😱
More than 10x growth in 2 years. 😱
2/ And look at the margin profile.
The scalability is ridiculous. Just four years after the founding of the company, it already had 89% gross margins and higher than 35% EBIT margins.
The scalability is ridiculous. Just four years after the founding of the company, it already had 89% gross margins and higher than 35% EBIT margins.
3/ Moving onto Microsoft.
What a slow-grower! Only 5.6x in 3 years 😂
29% EBIT margins right before IPO. A lot of operating leverage right there.
What a slow-grower! Only 5.6x in 3 years 😂
29% EBIT margins right before IPO. A lot of operating leverage right there.
4/ Ok, Amazon next.
Just ludicrous. I want a re-do on my definition of product-market fit.
30x in 1 year
Kept the same gross margin as well (20%) so a sign that it was not selling dollar bills for 90 cents.
Just ludicrous. I want a re-do on my definition of product-market fit.
30x in 1 year
Kept the same gross margin as well (20%) so a sign that it was not selling dollar bills for 90 cents.
5/ Ok, a few more. Here is Netflix.
Revenue grew 4x and operating losses grew 3x.
Gross margins went from 2% to 13%.
Revenue grew 4x and operating losses grew 3x.
Gross margins went from 2% to 13%.
6/ And last but not least, Facebook.
In the last year before IPO, it grew 88% with 48% EBIT margins. Unreal.
In the last year before IPO, it grew 88% with 48% EBIT margins. Unreal.
7/ What other interesting S-1's have you seen?
It'd be cool to make this thread a collection of old S-1's.
It'd be cool to make this thread a collection of old S-1's.
