Revenue DeclinePersistent top-line contraction reduces economies of scale and weakens the platform's value proposition to advertisers and creators. Continued revenue declines impede margin recovery, limit reinvestment in product and sales, and lengthen the timeline to reach sustainable profitability.
Structural UnprofitabilityA sustained ~-20% net margin and deeply negative ROE signal ongoing value destruction. Long-run unprofitability drains equity, constrains reinvestment in product and sales, and may force dilutive financing or cost-cutting that undermines growth and platform development.
Weak Cash GenerationNegative operating and free cash flows mean the business is not self-funding and depends on external capital. Deteriorating FCF reduces runway for product and sales investment, increases financing risk, and constrains the firm's ability to scale the platform sustainably without further capital raises.