Stitch Fix's IPO Showcases the Rarest of Unicorn Traits—ProfitBy
Venture capital-backed Stitch Fix Inc. has posted a profit and has a clean balance sheet, setting it apart from a bulging portion of IPO-bound companies.
While the online personal-shopping service lost $594,000 in its last fiscal year, it racked up net income of $33.2 million and $20.9 million during the two previous years. Financials like that are sure to pique the interest of investors who see a pattern.
Only a quarter of the technology companies that listed in 2015 and 2016 were profitable and just 17 percent in 2014, according to analysis by Jay Ritter, a professor at the University of Florida’s business school. The last time we saw these levels? Just before the dot-com bubble burst and the year before the recession.
Why? We’ll tell you in the latest episode of Bloomberg’s Deal of the Week podcast.
— With assistance by Alex Sherman, and Shira Ovide