Airbnb CEO Brian Chesky Photograph by Stuart Isett/Fortune Global Forum

According to a report from The Information, Airbnb lost about $100 million in the second quarter of this year, compared to a profit of $10 million it made in the same period last year. The Information reports the loss is driven by increased marketing and administrative expenses, an indication that the company is dedicating more resources to its growth ahead of a planned IPO next year. A previous report from The Information had said Airbnb lost $306 million in the first quarter of this year, attributable in part to higher sales and marketing spend.

The losses recorded by Airbnb this year are in contrast to an upheld status as one of the few profitable private tech companies out there. Airbnb is known to have been profitable for two years running before reports of losses sprang up this year. While losses due to higher investments and bets on growth could pay off in the long-term, it may muddle Airbnb’s ability to present itself to investors as a tech company that makes money, especially at a time when loss-making companies like Uber and Lyft have taken a beating in the public markets. It isn’t uncommon for companies to ramp up marketing spend in order to display growth ahead of their public debuts, however, this seems like a time investors are particularly sensitive about loss-making companies, which may lead to complications for Airbnb’s planned public debut next year.

As a private company, Airbnb doesn’t reveal its full financial stats, making it difficult to draw conclusions from one or two quarterly results. It’s possible that Airbnb’s increased sales and marketing spend is paying off, with the company having said it “substantially” eclipsed $1 billion in revenue in the second quarter of this year, up $300 million from the same quarter last year according to The Information.

According to The Information, Airbnb spent $1.1 billion on sales and marketing in 2018, and is expected to surpass that this year. Such spend isn’t out of the box when compared with that of its competitors, for reference, Expedia and Booking Holdings, whose combined marketing spend came in at $10 billion last year. One recent event, a nine-year Olympics sponsorship deal sealed by Airbnb, is an indication of increased marketing spend by the company. The sponsorship deal, which grants Airbnb exclusive marketing rights at several Olympics events, is said to be worth $500 million in its entirety.

Even as reports of Airbnb recording substantial losses come to light, the company looks like it’s making a killing in markets outside the U.S. and China, evidenced by a $46 million profit in those regions last year.