Credit Risk Management

Cloud-based Software Companies Rack Up Huge Losses

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Castlight Healthcare, which went public in March 2014, had a net loss that same year of -188% but a market cap of over $1 billion.

Cloud computing has been all the rage recently but cloud-based software technology companies are posting the industry's biggest losses, according to CSI data.

Cloud-based software companies, many of which have been publicly-traded for less than three years, posted some of the biggest losses in the software technology industry group of the 2014 CSI making the companies an increased credit risk factor as market capitalizations show signs of returning to normal.  The 19 companies in the 125-company industry group identified as cloud-based posted an average net loss of -32.4%, well below the industry average net loss of 4.1%. 

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