Adventures in Buying a Ferrari for $2

[drlivingston]

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You read to page 100? Intense...

 

[dfagdfsh]

they say they spent $100 million on technology costs? on their ****** website?

 

[jrd617]

@drlivingston I've read enough S1's for a living to know all the sections.

 

[jrd617]

they say they spent $100 million on technology costs? on their ****** website?

Lyft spends $80M per year with AWS

https://www.cnbc.com/2019/03/01/lyft-plans-to-spend-300-million-on-aws-through-2021.html

 

[dfagdfsh]

lyft is used by thousands of drivers at a time and likely has a fairly sophisticated system.

therealreal is a garbage website worse than what many small shops have. and considering how awful their inventory management system, the costs cant be on the backend.

 

[jrd617]

I barely watch TV but have seen the RealReal's annoying TV ads. Must be spending a lot on that

 

[dfagdfsh]

$42 million on advertising

 

[goatamous]

I don't think there's anything alarming about the P&L

 

[jrd617]

I don't think there's anything alarming about the P&L

They're clearly trying to take market share, but how patient do you want to be with a company that resells clothes?

https://www.sec.gov/Archives/edgar/data/1585521/000119312519083351/d642624ds1.htm#toc642624_12

 

[dfagdfsh]

what market are they even trying to corner? their business seems like an elaborate troll.

 

[goatamous]

They're clearly trying to take market share, but how patient do you want to be with a company that resells clothes?

That's why it's not alarming to me from the expenditure side. Ramping up spending before an IPO
Whether you want to invest in them is a different story. With that said, their margins are healthy, especially considering the risk of inventory obsolescence isn't really there. It's and EBITDA world for investors anyway

With this all said, thinking we shouldn't crowd up Spoos thread anymore

 

[jrd617]

I would buy the LuxeSwap IPO. Bet it's a better run company.

 

[ace13x]

jesus christ they lost $75 million in 2018? how...

 

[SpooPoker]

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I Loled

I would buy the LuxeSwap IPO. Bet it's a better run company.

We buy employee cakes on birthdays, let employees bring kids to the store when babysitters ditch, buy them dinners to celebrate successes, and give them free educations in how to sell themselves on the side. Id say I have Julie Wainwright beat.

 

[kevenmee]

Those numbers... WTF indeed.

Totally surprised at their total revenue, especially given how shoddy their web presence is. Curious how much business is e-commerce vs physical.