As i mentioned those cost are real for small public companies, and while potentially tens of millions a year for large ones its a rounding error for them (e.g. MSFT spent ~$80m/yr on Deloitte the past couple of years for audit work, let's assume it also cost MSFT another $80m/yr on internal support for an annual cost of $160m) that would 0.15% of their net income and meaningless number in relation to the liquidity provided to the ~$3t worth of equity holders by being public. Also I'm not sure going to half year would meaning fully change that number a lot, $130m? the audit is annual with limited review of quarterly financials so there is not a ton of savings
> that would 0.15% of their net income and meaningless number in relation to the liquidity provided
It's still a distraction for leadership. While they're on a strategic pivot like the current one, quarterly reporting makes sense. If they're floating along on predictable cash flows like usual, semiannual reporting with an 8-K if something weird happens should still be fine.
Personally I'd look at this exercise as a core part of their job I don't see how reporting on the financial results of the company to its owners on a quarterly basis is a distraction. Is this a huge endeavor for the finance/legal/IR teams, yes. Does this impact the operations of the business, not a whole lot.
> don't see how reporting on the financial results of the company to its owners on a quarterly basis is a distraction
I invest in mostly private companies. I’m be pretty furious if I learned those executives spend a material part of every quarter making pretty presentations for me.
> Does this impact the operations of the business, not a whole lot
Every public-company CEO and CFO I know basically has to drop what they’re doing for a week, sometimes two, a quarter when it comes to earnings. Preparing reports and releases. Talking to big investors and bank analysts.
Of course they do - it sucks and it really sucks for the finance team (but that’s their job). But I’m 100% on board with the rest of the leadership team spending four weeks a year reporting on the results of the company to the people that actually own the company.