Stock issuance deducts from GAAP earnings. So yes, it sounds like they would be profitable excluding this issuance.
Imagine you own 1% of a business that nets $100/year in cashflow, so you're entitled to $1/year. But they give the employees of that business 2% (of total count) additional shares per year (and not you).
Are you making or losing money? Cash flow positive, negative earnings... loss of your equity exceeds your cashflow.
That's not how it works for this comp. It is the max total stock comp for a 10 years employment if every milestone is hit and reddit market cap goes up 300%.
adam_arthur|1 year ago
Imagine you own 1% of a business that nets $100/year in cashflow, so you're entitled to $1/year. But they give the employees of that business 2% (of total count) additional shares per year (and not you).
Are you making or losing money? Cash flow positive, negative earnings... loss of your equity exceeds your cashflow.
s1artibartfast|1 year ago