[JeffL]

When companies generate cash flow from profits, three major things they do with that cash are 1) pay dividends, 2) stock buybacks, 3) reinvest in the company. Shareholder's prefer the company to engage in number 3 if the company can reinvest with high ROI. If they pay the shareholders a dividend, and the shareholder can only invest that at 10%, it's ok but not as good as if the company thinks it can invest and do better.

The "plan" with these growth companies is to reinvest in themselves and keep growing as big as possible until the cost to grow is too much, or the ROI from growing is less than is generally available elsewhere. Only then will they pay dividends or do stock buybacks (which are functionally equivilant, but with favorable tax ramifications). The "plan" is that you hold for 10 or 20 years or more and then get your dividends then. Or sell at a profit sooner, because the stock will be worth more because it will be closer to that future pay day.

You can expect unprofitable companies to give you money in the future if you believe in their business plan and believe that they can execute.