DaDa Group (DADA.US) – Note 5 (Rev. Recognition Change)

[March 19th, 2021] In note 4, I was concerned about the noises that accounting change will introduce. There’s no impact on profit dollar but still it will introduce noises. I expect to feel the impact first from the guidance of 2Q21 when the company reports 1Q21 results. Not sure if we will see a before-after … Continue reading DaDa Group (DADA.US) – Note 5 (Rev. Recognition Change)

DaDa Group (DADA.US) – Note 4 (4Q20 Charts)

[March 12th, 2021] One of my concern in 4Q20 is the decreased contribution margin (%) due to rising operations and support costs probably driven by competition. I believe the change of accounting treatment on last-mile delivery service provided to JD Logistics will have "some" impact on topline (-) and contribution margin (+). There's no impact … Continue reading DaDa Group (DADA.US) – Note 4 (4Q20 Charts)

Coupang (CPNG.US) – Note 1

[March 6, 2021] Some thoughts after skimming through S1 and The Generalist's briefing (Coupang: The Art of Obsession) * * * Coupang is a consumer internet company expanding verticals and gaining consumer's wallet share in South Korea. Coupang currently has 1P & 3P e-commerce business (with in-house logistics capacity), grocery offering, food delivery and digital … Continue reading Coupang (CPNG.US) – Note 1

Roblox – Updated Charts

I update the slide with 4Q20 data in latest S1. Direct listing of Roblox will be interesting because market appetite has shifted in last two weeks and the underlying business of Roblox seems to be normalizing this year based on company's expectation (conservative?). Roblox has strong cash flow and just raised a private round so … Continue reading Roblox – Updated Charts

Roblox – IPO Note 4 (Investor Day)

[February 27th, 2021] Roblox has updated their S-1 and decided to go direct listing on March 10th. Roblox hosted investor day on Youtube. I highly recommend watching that video (presentation and Q&A) which is embedded below. Roblox is interesting: "metaverse holder" pure play - vertical & category agnostic consumer internet tech "large" TAM, meme candidate, … Continue reading Roblox – IPO Note 4 (Investor Day)

Roblox – IPO Note 3 (It’s Direct Listing!)

[January 10th, 2021] Roblox announced few days ago that it raised $520 million in new Series H funding at $29.5 billion valuation and planned to pursue an IPO via direct listing in early February 2021. It's management team's job to maximize the valuation for existing stockholders. By withdrawing from IPO and then raising a private … Continue reading Roblox – IPO Note 3 (It’s Direct Listing!)

Roblox – IPO Note 2

[December 16th, 2020] Background Roblox Corp. delayed its planned IPO after company officials decided that the gravity-defying performance this week of Airbnb Inc. and DoorDash Inc. made it too difficult to determine the right price for the videogame company’s shares.Dec. 11, 2020 WSJ Affirm Holdings Inc. is postponing its initial public offering, according to people familiar with the matter, the second … Continue reading Roblox – IPO Note 2

Roblox – IPO Note 1

I just skimmed Roblox S-1. As there will be many S-1 teardown and takes on the internet, I only write down high-level thoughts that I still remember without checking the document again. I might put together a simple model and charts later. * * * [November 22nd, 2020] What is Roblox? Roblox is a User-Generated … Continue reading Roblox – IPO Note 1

58.com – Initial Thoughts

58.com (WUBA.US) [August 23, 2019] * Initial Thoughts * Background I came across this stock when trying various online stock analysis tools. I listened to its 2Q2019 earnings conference call and briefly reviewed most recent company presentation. I found 58.com interesting because of its business model and new business initiatives such as 58 Town and … Continue reading 58.com – Initial Thoughts

Mercari (4385.JP) – Note on Category Deepening, Product Enhancement & Marketplace Stickiness

Mercari (4385.JP) [December 25, 2018] * Note on Category Deepening, Product Enhancement & Marketplace Stickiness * Following series posts on Mercari (initial analysis, withdrawal from UK) and its related topics (network effect and digital payment service), this notes examines Mercari recent marketplace deepening/expansion/enhancement initiatives and also does an ideation exercise on user generated content (UGC). The UGC … Continue reading Mercari (4385.JP) – Note on Category Deepening, Product Enhancement & Marketplace Stickiness

Mercari (4385.JP) – Note on Withdrawal from UK

On December 18, 2018, Mercari announced it will withdraw from UK market. At a meeting of its Board of Directors held on December 18, 2018, Mercari, Inc. (the “Company”) decided to dissolve and liquidate Mercari Europe Ltd and Merpay Ltd, our subsidiaries in the UK. As mentioned in my Mercari initial analysis, UK operation basically … Continue reading Mercari (4385.JP) – Note on Withdrawal from UK

Entering a market where existing platforms have network effect working

The title of this post is very generic because I observed or studied cases in different industries that new entrants want to penetrate markets where incumbents already have their network effect working. By leveraging its resources or capabilities, new entrants might be willing to acquire "users" (depending on dynamics of business, platform might want to … Continue reading Entering a market where existing platforms have network effect working