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Key points from DoorDash, Airbnb, Roblox, Wish, Affirm S-1 archiving



A DoorDash Inc. delivery person places an order in an insulated bag at Chef Geoff’s restaurant in Washington, DC

Andrew Harrer | Bloomberg | Getty Images

Technical investors have plenty of reading to do during the Thanksgiving holiday in the form of IPO archives. DoorDash, Airbnb, Affirm, Roblox and Wish all unveiled their prospects in the last eight days with plans to be released before the end of the year.

They are benefiting from a post-election rally that has lifted US stock indices near record highs and a clear demand in the public market for high-growth investments.

All five companies serve consumers and can expect a busy holiday season in the face of rising coronavirus cases and a drastically changed economy. It̵

7;s a completely different slate of market participants than the previous rush in September, when a number of enterprise software companies such as Snowflake and Palantir debuted.

They each have different narratives tied to coronavirus.

DoorDash more than tripled revenue in the third quarter, as many restaurants turned to delivery as their primary business source. Children’s gaming platform Roblox reported revenue growth of 91% in the last quarter (compared to last year) as it provided the benefit of school closures and more users looking for ways to be entertained away from their friends.

Affirm, which offers online loans to consumers to consumers who buy clothes, electronics, home goods and other things, almost doubled its revenue in the last quarter as people increasingly turned to the internet for their purchases. Wish, an online discount retail market, is also taking advantage of the e-commerce boom. However, growth in the third quarter was more subdued at 33%, partly because most of its traders are based in China and still face supply chain challenges.

Airbnb is the company most hurt by the pandemic that has flattened the travel economy. But a niche has been found in combining holiday homes with teleworking and positioning itself for an economic rebound.

Here is what we learned from each company’s S-1 archiving, listed in the order in which they were archived:

By Dash

Tony Xu, co-founder and CEO of DoorDash Inc., smiles during the Wall Street Journal Tech Live conference in Laguna Beach, California, USA, on Tuesday, October 22, 2019.

Martina Albertazzi | Bloomberg | Getty Images

Read the full archive here.

Top line: Revenue rose to $ 879 million in the third quarter from $ 239 million the year before, spurred by order growth of 237%. In the first nine months of the year, orders rose to 543 million, compared to 181 million in the same period last year.

Bottom line: Net loss narrowed to $ 42 million from $ 152 million a penny ago. Over three quarters of 2020, DoorDash generated a positive contribution margin of 23% compared to a negative margin last year of 32%, meaning the company is finally making money on each order on average.

Covid history: DoorDash has taken advantage of its share in recent years – they have almost 50% control of the US meal delivery market – to get its brand in front of consumers at a time when they are ordering food at an unprecedented price. Americans will eventually return to eating out, and restaurants that rely on delivery will continually look for more affordable ways to operate. As DoorDash warns in its prospectus: “The circumstances that have accelerated the increase in total orders as a result of the effects of the COVID-19 pandemic may not continue in the future, and we expect the growth rate of total orders to fall in future periods. “

Airbnb

Read the full archive here.

Top line: Revenue in the third quarter fell 18% from a year ago to $ 1.34 billion. It’s a big drop, with expected a steeper booking fall in the fourth quarter because the pandemic keeps people close to home. But people use Airbnb for non-city rentals and to find creative ways to work remotely, helping the company cope with the crisis better than hotels, airlines and online travel agencies.

Bottom line: Airbnb reported net income of $ 219 million in the third quarter, a slight decrease from the previous year. The company reduced its workforce by 25% in May and cut its marketing budget, leading to a 75% drop in sales and marketing costs.

Covid history: Airbnb was poised to be the technology IPO for the year coming into 2020, with a valuation of $ 35 billion with an ongoing promise to change the way consumers travel. When the business stopped late in the first quarter, Airbnb had to address the debt markets by raising $ 2 billion. $ In high-interest loans and cut the valuation. Potential long-term investors may see Airbnb’s ability to adapt to a new reality faster than its rivals as a reason to come in now along with the expectation that we will not be locked down forever.

Confirm

Max Levchin, co-founder of PayPal and Affirm

Contributor | Bloomberg | Getty Images

Read the full archive here.

Top line: For the period ending September 30, revenue increased 98% from a year ago to $ 174 million. The biggest growth came from its trading network, the online companies that offer loans when goods are purchased. The company works with over 6,500 merchants, including Peloton, West Elm and Pottery Barn, and it has a partnership with Shopify.

Bottom line: Affirm’s net loss in the quarter narrowed by approx. half from a year ago to $ 15.3 million. On a percentage basis, the largest cost increase came in sales and marketing, where expenses quadrupled to $ 22.6 million linked to its new relationship with Shopify.

Covid history: The number of active consumers rose to 3.9 million in the quarter from 2.4 million the year before. The direct-to-consumer trend that promotes online commerce and pushes Shopife’s inventory higher also drives Confirmation. Look no further than Peloton, which accounts for 30% of Affirm’s revenue and is booming from the home boom. Peloton’s revenue more than tripled in the last quarter, and the stock has increased by 290% this year.

Roblox

A rendition of the hit Roblox video game “Jailbreak.”

Source: Roblox

Read the full archive here.

Top line: Revenue for the third quarter increased 91% to $ 242 million. The company’s gaming platform lets kids create an avatar that they can take between games and spend money on a virtual currency called Robux for premium features. Daily active users almost doubled in the period ending September from the quarter last year, to 36.2 million. A survey the company calls “hours engaged” more than doubled to $ 8.7 billion.

Bottom line: Net loss in the third quarter more than doubled to $ 48 million from the previous year. Sales and marketing costs were flat, but there was a sharp increase in developer exchange fees, which more than tripled to $ 81.9 million. This is the money Roblox shares with game developers when consumers spend money on their titles. “Many users eventually become developers and creators, and almost all developers and creators started as users,” the company says in its prospectus.

Covid history: In addition to spending more time and money on the app because they are at home, users also host virtual birthday parties and other gatherings on Roblox, generating another revenue stream for the business. While Roblox has lured many more users during the pandemic, who are likely to continue using the app, there are simply not as many screen hours available when schools reopen.

Wish

Read the full archive here.

Top line: Revenue for the third quarter increased 33% to $ 606 million. Wish, known for deep discounts, continues to benefit from the transition to online shopping and the increased comfort that consumers buy from their phones. Monthly active users increased to 108 million in the first nine months of 2020 from 81 million in the same period a year ago.

Bottom line: Net losses narrowed to $ 99 million from $ 134 million due to a 13% drop in sales and marketing costs as the company moved investment to its logistics platform.

Covid history: Wish was particularly vulnerable in the early days of the pandemic because most of its traders are based in China, where Covid-19 first began to spread. Revenue decreased in the first quarter and then increased in the second. But the company said retailers continue to suffer from supply chain disruptions and slow delivery times to various parts of the world.

CLOCK: Roblox files for IPO and a theatrical twist?


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