The recent collapse of WeWork’s $47 billion initial public offering has brought a newfound sobriety to certain corners of the financial markets. Many on Wall Street have suddenly become far less tolerant of companies that sport lofty valuations but seem unable to demonstrate a clear path to profitability.

So when Wayfair (the online furniture company that wants you to think it’s a tech company) announced its 21st consecutive quarterly loss since going public in 2014, the market was not in a forgiving mood. Shortly before the stock exchange opened on Thursday, as news hit that the company had lost another $272 million in the quarter, its shares quickly dropped by 15 percent in premarket trading.

It wasn’t that the market was surprised by yet another loss. On the contrary: Wayfair shares had fallen more than 5 percent just the day before the earnings release in anticipation of another disappointing number, and have been in a clear downward trend since June.

Instead, the steep drop was the result of an ever-increasing chasm between Wayfair’s revenue growth and the magnitude of its operational losses, with news that revenues reached $2.3 billion in the quarter—an increase of nearly 36 percent from year-ago levels—drowned out by losses that increased by almost 80 percent.

Wayfair’s losses are driven primarily by its massive advertising spending, which increased by 39 percent in the quarter. At 12.2 percent of revenue, the company’s ad spending is on track to exceed $1 billion by the end of 2019.

SG&A (selling, general and administrative) spending is the other major expense for the company—it ballooned by nearly 60 percent in the quarter and is already well past the billion-dollar mark for the year.