๐จ HOTEL COMPANY #AirBnB ๐ doesnโt own real estate
๐ TAXI COMPANY #Uber ๐ doesnโt own any cars
AND
๐ฎ DIGITAL PLAYGROUND COMPANY #Roblox ๐ doesnโt create any games
With $GME hitting all time highs, making people millions & some even billions, let's take a look at one of the gaming companies set to IPO soon.
Time for a thread ๐ ๐๐
๐จ HOTEL COMPANY #AirBnB ๐ doesnโt own real estate
๐ TAXI COMPANY #Uber ๐ doesnโt own any cars
AND
๐ฎ DIGITAL PLAYGROUND COMPANY #Roblox ๐ doesnโt create any games
Remember building imaginary forts with your friends in your backyard?
It's like that except digital, pros are building the structures and your parents are spending a lot of $$$ buying gear, digital pets and accessories.
Making $RBLX very rich!
Online gaming platform where millions of kids (and some adults) come to play, learn, communicate, explore, and expand their friendships.
All in 3D digital worlds that are entirely user-built.
- Founded in 2004
- $589MM revenue
- +170MM monthly active users (Oct 2020)
- Freemium, monthly subscription & one-time payments
- US$29.5B Valuation
No doubt COVID was big for $RBLX; with kids stuck at home they clocked some serious hours.
Revenue was up +68% year-over-year to +$588MM (9 months ended Sept 2020).
But, even pre-covid, the trend was their friend as NEW users flocked to the platform!
And they are completely addicted. Compare $RBLX to the other MAJOR platforms that compete for our attention and itโs absolutely jaw dropping!
Thatโs because theyโve nailed the โHoly Grailโ of the platform economy: getting customers addicted!
Attract CUSTOMERS โ๏ธ which attracts DEVELOPERS who create great content โ๏ธ Attracting More CUSTOMERS
To keep content quality high, their customers coming back and the flywheel spinning, they share a decent amount of their revenue with their developers: +$250MM in 2020.
This has attracted an astonishing +7MM developers!
BUT, this is only a 25% payout of revenue to developers. If you compare it to other marketplaces its not a lot:
70%: Apple App Store
75-85%: Amazon (similar to Walmart)
95%: Etsy
Sustaining such a high โtake-rateโ is insanely impressive for $RBLX
Is the 'in-gameโ currency that powers the ecosystem. It costs real fiat to buy. Customers use it to BUY:
- Games
- Virtual Items
- Animations & Unique Abilities
Fanatic customers are even saying "Robux will replace the USD" ; )
Do they actually make money?
Technically, on paper, NO.
Net loss of $203.2MM in the 9 months ended September 30, 2020.
BUT...
If you look at their FCF its skyrocketing: $292MM up from a mere $5.9MM the year before.
CA$HING!
You can see it in their bookings, which grew +170% YoY.
So why a net loss with such high FCF?
Because although the money is โin the doorโ, they recognize it over 23 months (estimated average lifetime of a paying user)
You can see the cash piling up over on their balance sheet:
-NO DEBT ($50MM undrawn line)
- +$800MM cash (at Sept 2020)
Plus, on Jan 7th they raised another US$520MM in a pre-IPO financing.
While 99% of the public will say Roblox's biggest public "competitor" is Unity Software (U-US, $39B). I argue that is a false narrative beyond investors bucketing them as "gaming" companies.
But $U has done very well. Up +300% since its #IPO in September.
The 2 more appropriate competitors are both private and booth owned by major companies:
- Minecraft 130MM active users
- Fortnite 350MM active users
Roblox is giving them a real run for their money with +170MM active users as of October 2020.
I see 4 key growth drivers that could yielding hundreds of millions of dollars:
1.Advertising
2.Cross-Over JVs
3.Subscriptions
https://t.co/K9t7BjumyG Expansion
Want more on $RBLX ?
- Growth
- Risks
- Valuation
- Should you buy on the IPO?
Read the rest here in my (FREE) weekly newsletter ๐ ๐๐
https://t.co/h7qeybRf2R
#Gaming #Stocks #NASDAQ
More from Trading
Fake chats claiming to be from the Irish African community are being disseminated by the far right in order to suggest that violence is imminent from #BLM supporters. This is straight out of the QAnon and Proud Boys playbook. Spread the word. Protest safely. #georgenkencho
There is co-ordination across the far right in Ireland now to stir both left and right in the hopes of creating a race war. Think critically! Fascists see the tragic killing of #georgenkencho, the grief of his community and pending investigation as a flashpoint for action.
Across Telegram, Twitter and Facebook disinformation is being peddled on the back of these tragic events. From false photographs to the tactics ofwhite supremacy, the far right is clumsily trying to drive hate against minority groups and figureheads.
Declan Ganleyโs Burkean group and the incel wing of National Party (Gearรณid Murphy, Mick OโKeeffe & Co.) as well as all the usuals are concerted in their efforts to demonstrate their white supremacist cred. The quiet parts are today being said out loud.
The best thing you can do is challenge disinformation and report posts where engagement isnโt appropriate. Many of these are blatantly racist posts designed to drive recruitment to NP and other Nationalist groups. By all means protest but stay safe.
There is co-ordination across the far right in Ireland now to stir both left and right in the hopes of creating a race war. Think critically! Fascists see the tragic killing of #georgenkencho, the grief of his community and pending investigation as a flashpoint for action.
Across Telegram, Twitter and Facebook disinformation is being peddled on the back of these tragic events. From false photographs to the tactics ofwhite supremacy, the far right is clumsily trying to drive hate against minority groups and figureheads.
Be aware, the images the #farright are sharing in the hopes of starting a race war, are not of the SPAR employee that was punched. They\u2019re older photos of a Everton fan. Be aware of the information you\u2019re sharing and that it may be false. Always #factcheck #GeorgeNkencho pic.twitter.com/4c9w4CMk5h
— antifa.drone (@antifa_drone) December 31, 2020
Declan Ganleyโs Burkean group and the incel wing of National Party (Gearรณid Murphy, Mick OโKeeffe & Co.) as well as all the usuals are concerted in their efforts to demonstrate their white supremacist cred. The quiet parts are today being said out loud.
There is a concerted effort in far-right Telegram groups to try and incite violence on street by targetting people for racist online abuse following the killing of George Nkencho
— Mark Malone (@soundmigration) January 1, 2021
This follows on and is part of a misinformation campaign to polarise communities at this time.
The best thing you can do is challenge disinformation and report posts where engagement isnโt appropriate. Many of these are blatantly racist posts designed to drive recruitment to NP and other Nationalist groups. By all means protest but stay safe.
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๐ฟ๐ป๐๐ ๐๐๐๐๐ ๐๐ ๐ ๐บ๐๐๐ : ๐ซ๐๐๐๐๐ & ๐ฝ๐๐๐๐๐
Once upon a time there was a Raja named Uttฤnapฤda born of Svayambhuva Manu,1st man on earth.He had 2 beautiful wives - Suniti & Suruchi & two sons were born of them Dhruva & Uttama respectively.
#talesofkrishna https://t.co/E85MTPkF9W
Now Suniti was the daughter of a tribal chief while Suruchi was the daughter of a rich king. Hence Suruchi was always favored the most by Raja while Suniti was ignored. But while Suniti was gentle & kind hearted by nature Suruchi was venomous inside.
#KrishnaLeela
The story is of a time when ideally the eldest son of the king becomes the heir to the throne. Hence the sinhasan of the Raja belonged to Dhruva.This is why Suruchi who was the 2nd wife nourished poison in her heart for Dhruva as she knew her son will never get the throne.
One day when Dhruva was just 5 years old he went on to sit on his father's lap. Suruchi, the jealous queen, got enraged and shoved him away from Raja as she never wanted Raja to shower Dhruva with his fatherly affection.
Dhruva protested questioning his step mother "why can't i sit on my own father's lap?" A furious Suruchi berated him saying "only God can allow him that privilege. Go ask him"
Once upon a time there was a Raja named Uttฤnapฤda born of Svayambhuva Manu,1st man on earth.He had 2 beautiful wives - Suniti & Suruchi & two sons were born of them Dhruva & Uttama respectively.
#talesofkrishna https://t.co/E85MTPkF9W
Prabhu says i reside in the heart of my bhakt.
— Right Singh (@rightwingchora) December 21, 2020
Guess the event. pic.twitter.com/yFUmbfe5KL
Now Suniti was the daughter of a tribal chief while Suruchi was the daughter of a rich king. Hence Suruchi was always favored the most by Raja while Suniti was ignored. But while Suniti was gentle & kind hearted by nature Suruchi was venomous inside.
#KrishnaLeela
The story is of a time when ideally the eldest son of the king becomes the heir to the throne. Hence the sinhasan of the Raja belonged to Dhruva.This is why Suruchi who was the 2nd wife nourished poison in her heart for Dhruva as she knew her son will never get the throne.
One day when Dhruva was just 5 years old he went on to sit on his father's lap. Suruchi, the jealous queen, got enraged and shoved him away from Raja as she never wanted Raja to shower Dhruva with his fatherly affection.
Dhruva protested questioning his step mother "why can't i sit on my own father's lap?" A furious Suruchi berated him saying "only God can allow him that privilege. Go ask him"
I'm going to do two history threads on Ethiopia, one on its ancient history, one on its modern story (1800 to today). ๐ช๐น
I'll begin with the ancient history ... and it goes way back. Because modern humans - and before that, the ancestors of humans - almost certainly originated in Ethiopia. ๐ช๐น (sub-thread):
The first likely historical reference to Ethiopia is ancient Egyptian records of trade expeditions to the "Land of Punt" in search of gold, ebony, ivory, incense, and wild animals, starting in c 2500 BC ๐ช๐น
Ethiopians themselves believe that the Queen of Sheba, who visited Israel's King Solomon in the Bible (c 950 BC), came from Ethiopia (not Yemen, as others believe). Here she is meeting Solomon in a stain-glassed window in Addis Ababa's Holy Trinity Church. ๐ช๐น
References to the Queen of Sheba are everywhere in Ethiopia. The national airline's frequent flier miles are even called "ShebaMiles". ๐ช๐น
I'll begin with the ancient history ... and it goes way back. Because modern humans - and before that, the ancestors of humans - almost certainly originated in Ethiopia. ๐ช๐น (sub-thread):
The famous \u201cLucy\u201d, an early ancestor of modern humans (Australopithecus) that lived 3.2 million years ago, and was discovered in 1974 in Ethiopia, displayed in the national museum in Addis Ababa \U0001f1ea\U0001f1f9 pic.twitter.com/N3oWqk1SW2
— Patrick Chovanec (@prchovanec) November 9, 2018
The first likely historical reference to Ethiopia is ancient Egyptian records of trade expeditions to the "Land of Punt" in search of gold, ebony, ivory, incense, and wild animals, starting in c 2500 BC ๐ช๐น
Ethiopians themselves believe that the Queen of Sheba, who visited Israel's King Solomon in the Bible (c 950 BC), came from Ethiopia (not Yemen, as others believe). Here she is meeting Solomon in a stain-glassed window in Addis Ababa's Holy Trinity Church. ๐ช๐น
References to the Queen of Sheba are everywhere in Ethiopia. The national airline's frequent flier miles are even called "ShebaMiles". ๐ช๐น
