2U’s Business Isn’t Profitable, but Investors Shouldn’t Care

2U Inc.'s (NASDAQ: TWOU)stock has had an amazing run since the company went public, up over 500% since the March 2014 IPO. The online education company posted stellar 2017 resultsand has continued robust revenue growth in Q1 2018with 42% year-over-year growth. But the company still hasn't posted a profit, with a net loss of $29.

4 million in 2017, compared to a loss of $20.7 million in 2016. First-quarter results posted in early May showed a quarterly net loss of $14.9 million, and is the company projecting a full year net loss between $46.6 million and $44.7 million.