It has been a difficult 18 months for AO World (LON:AO.) since its float last February.
The online appliance retailer listed for £1.2bn and soon saw its shares surge 44% higher to just shy of 400p due to high investor appetite for the shares.
So much so, that JP Morgan had to subscribe a further 22.2mln shares, the full over-allotment option, just a week after its listing.
Since then, AO has slumped more than 50% taking its market capitalisation from £1.7bn at its peak to just under £700mln as two profit warnings last year sent investors fleeing.
At its peak, it gave the company a larger market capitalisation than retailer Debenhams and brought it close to rival Dixon’s, the high street electrical retailer, which back in February 2014, was valued at £1.9bn.
Debenhams currently is now worth £935mln while Dixons has risen above £4.8bn, thanks, in part, to its merger with Carphone Warehouse.
The drop has cost chief executive and founder John Roberts around £300mln.
When the firm came to the public markets, Roberts sold £86mln worth of shares, leaving him with a 28.6% stake in business, worth £483mln.
Today, he still holds some 26.2% of AO, but his stake has shrunk to £179mln.
There are a handful of online-based companies listed in the UK, including Ocado (LON:OCDO) and ASOS (LON:ASC), which have also found the last 18 months difficult.
Ocado has struggled with the competition from discounters such as Aldi and Lidl, while ASOS has been hit by a resurgence in popularity for companies such as Next and Marks & Spencer.
Since last February, the online grocer has lost 36% of its value, while the online fashion outlet has lost 58%.
It goes to show that it’s not just as simple as setting up a website.
Last year was particularly tough for AO, which recorded a pre-tax loss of £2.9mln despite UK revenues rising 33% to £381.5mln and UK earnings before tax climbing 47.3% to £16.5mln.
Its German arm, AO.de, incurred a hit of £4.2mln in start-up costs last year, and even when operational, made a loss of £2.1mln, with the company citing inefficient deliveries and small volumes for the loss.
It was the second year in a row the company made a loss.
After two profit warnings last year, investors will have been relieved that today’s update mentioned no issues.
AO said it expects quarterly revenue to rise by at least a fifth as it reported further progress.
Overall revenue in the quarter to September is set to increase year on year by 20%-21% driven by growth in AO.com sales, its UK site, of over 30%.
And major shareholders in AO could be rewarded for their patience, according to Shore Capital.
George Mensah, at Shore Capital, said: “We view today's statement as encouraging, given the strong growth in AO.com and gives confidence that the business does indeed remain on track for FY2016.”
AO sped up investment in AO.com over the quarter through TV advertising and other media, which it said would underpin long-term prospects and boost short-term revenue.
Progress in Germany meanwhile, where it is launching a retail operation, remained “in line with plan.”
The news will be welcome after two years of consecutive losses, but shares eased 3.7% to 163p today, as investors remained sceptical.