I don't believe this. Snowflake for instance could be profitable if they chose and they have almost no debt. Furthermore their expenses grow logarithmically with their revenue. It doesn't cost much more to have 2 customers as it does to have 1, but the revenue doubles. Their services are an add-on that supplements the revenue from the platform. Its the growth in platform adoption that moves the earnings number.

>They're making hundreds of millions of dollars per year.

No they are losing 10's of millions of dollars a year. Revenue is not earnings. Wework had revenue of billions of dollars a year and but the cost of that revenue meant they had no path to profitability.

I see the same thing here. The bulk of their revenue come from selling services on top of their software. Services have a high COGS. For every service contract you sell you have to pay someone to service the contract. Your costs grow linearly with your revenue. This is the trap yelp fell into. Making billions by paying 95-105 cents for every dollar because opening a new market meant building all the infrastructure for that market.

If hashicorp can't find a way to make the growth in adoption of their software directly influence their earnings I don't think this is a good investment.