Originally Posted by
Dr Jabadski
I can’t write for anyone else, but by all OBJECTIVE analyses, and the FT “sniff test*” for the past 2-3 years, and recent cost cutting maneuvers, Bilt is highly UNprofitable and many here think it is unsustainable (in its current iteration) and headed for bankruptcy.
Of course the CEO is going to claim “all is terrific” right up until the moment they file for bankruptcy protection. Just like many others, he’s laughing all the way to the bank where he put a good part of the venture capital money claiming it as his salary.
(* “sniff test”: Etymology, noun, (idiomatic) an informal check of an idea or proposal, using one's common sense or sense of propriety. Synonym: reality check)
I agree that the biz doesn't pass the sniff test and is likely unsustainable in current form, but there's no hard evidence that Jain lied when he said Bilt is "profitable." Of course, "profitable" is a bit vague. There's a report out that says Bilt achieved positive EBITDA in April 2022.
To me, it sounds like Bilt
is profitable but only because Wells is taking a loss on the business by paying Bilt a large credit card customer acquisition fee and 0.8% of rent payments (per WSJ article). When Wells recuts that deal, Bilt probably won't be profitable anymore.