These 15 hot tech companies actually are losing millions
At the turn of the millennium, the "Dot Com Bubble" burst -- an infamous example of popularity trumping profitability, noisy buzz beating good business. Trendy start-ups like Pets.com raised hundreds of millions, produced a Super Bowl ad and went public, only to fold months later, with hundreds of layoffs and thousands of bitter investors. Enamored by the potential of new technology, everyone forgot about Business 101.
At least the industry has learned its lesson.
Or has it? At FindTheCompany, we turned to the current tech landscape to see which companies might be reliving the late-'90s bubble. We wanted to find examples of hot, growing organizations that nonetheless remain extraordinarily unprofitable. Specifically, we started with companies that had at least:
- 50 percent revenue growth year over year (2014 vs. 2013)
- 20 percent headcount growth year over year (2014 vs. 2013)
We then sorted the list by 2014 profit, from lowest (i.e. most negative) to highest. The data comes from Zacks Investment Research.
The following 15 companies emerged as both the hottest (i.e. growing fast) and most unprofitable (tens, if not hundreds of millions, in losses):