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3 Apr, 14 tweets, 5 min read
$SKLZ Updated Investor Presentation Posted…

In this thread, I will quickly discuss updates between the SPAC presentation and this one.

For the following images: New presentation on the left, old presentation from the SPAC on the right.

Minutes per day from 62 to 60 mins - estimated by 4 minutes per tournament. I.e. Average games per day went from 15.5 to 15.

Makes sense as they have doubled the # of paying users in 2020 but not going to try and dissect 0.5 games per day as these are all rounded anyway.
Updated with revenue beat $225M -> $230M as well as updated growth rate.

LTV/CAC reduced from 4.7x to 3.8x as they have unloaded on S&M. This is the most logical short-term bearish argument in my opinion. Watching closely.
Interesting market-size updates from `14-`19 CAGR to `15-`20 CAGR.

Movies and music were hit hard (obviously) in 2020. OTT and gaming outperformed. Books and Television overall were flat.

Mobile gaming now $86B vs $68B in 2019.
Take-rate has improved from 14% to 14.6%. On the path to 15% as hoped.

These figures for operating expenses include user incentives. In my opinion, the unit economics are compelling if they can get S&M down long-term. Partnered deals are important as marketing is lower.
New slide highlighting partnerships.

Bowlero - They own the Professional Bowlers Association (PBA)
Ganassi Racing - They own two NASCAR teams as well as others in Indycar

Crazy slide. Average cost per install increased from $4.85 in 2019 to $6.61 in 2020.
ARPU updated from $6.30 in 2019 to $7.49 in 2020 as expected.
Blackout Bingo has become the #1 game as of Q42020.

Number of games over $1M in annual revenue up to 36 from 23 in 2019.
New slide shows user cohort spending by year.

Spending continues to grow past the 3Y which means real LTV is higher than stated.

Also noticed newer cohorts are spending more, faster.
Updated slide to represent actuals instead of projections now that they are post-merger and can't project past 1 year.
Expected TAM has increased slightly among New Genres and iOS markets. TAM estimates are fairly unnecessary to me.
Added slides representing latest financials.

Removed slides on the SPAC transaction details now they are post-merger.


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More from @plantmath1

11 Mar
$SKLZ Investor Presentation! Lots of interesting data & charts!

Its fun to watch a new public company find their bearings around earnings. This should have been posted earlier.

I promise last $SKLZ post tonight.

Read for yourself here:…
$SKLZ Some metrics already posted & discussed.
$SKLZ The GMV chart is interesting. A Q2 bump from lock-down followed by a continuation of their previous growth curve.
Read 7 tweets
10 Mar
$SKLZ Earnings call -

First introduced new board members which I spoke about.

First few statements about defending patents and stopping cheating as the core.

Focused on converting users to paid users.
$SKLZ CEO - We have been continually investing in synchronous gaming categories from RTS, FPS, racing genres. Synchronous content will expand our universe even more.
$SKLZ We have made significant investment in architecture for reliability and fast natured content.

$SKLZ In Q4 grew headcount by 64% (WOW). New investments in payments and software.
Read 19 tweets
10 Mar
$SKLZ Earnings:
$SKLZ Q4 Revenue increased 95% YoY and 13.3% Sequentially from Q3. FY20 Revenue above winter SPAC estimates by ~$5M. (fixed tweet location)
Struggling to find anything to write about LOL. Not as complicated as $FSLY. The numbers are all there. $SKLZ
Read 5 tweets
10 Mar
Curious to see how the market values $RBLX over the next year.

Bookings are what we would consider revenue for other firms as they defer revenue from currency sales over the average customer lifecycle.

Bookings projected to decline sequentially every quarter in 2021.
Am I reading this wrong or does $RBLX have 6.6% Gross Margins for first 9 months 2020 (excluding R&D, G&A, S&M)?
For me personally, its a bit of a red flag when cost growth outpaces revenue growth when it isn't due to S&M spend.
Read 4 tweets
8 Mar
Wolfpack, before slandering a company by insinuating they faked a partnership with the NFL, consider looking at the NFL's own communications site.

$SKLZ - Wolfpack, do you know people can look this stuff up? The largest existing shareholders sold less than 2% of their holdings in the offering. If I own 100 shares of $AAPL and sell 2 shares, that doesn't make me bearish on the company.

Wolfpack's short report on $SKLZ says "We’ve rarely experienced so many interviews with former employees who universally share such a negative opinion of their company’s CEO as we did with SKLZ and Andrew Paradise."

Compare to Glassdoor 85% CEO approval with nearly 200 reviews. ImageImage
Read 10 tweets
20 Feb
After some thought, my mistake with #Bitcoin was taking its stated purpose(s) at face value.

Some $BTC proponents say it will be a global currency alternative to the dollar.

Some say its is simply an alternative to gold, aka an inflation hedge.
I accepted that it could be both. A currency and a "gold" / inflation hedge.

Neither of those make $BTC interesting to me as a growth investor.

I have no interest in hedging inflation as I don't carry any cash. Stocks themselves are a hedge against inflation.
I've never bought TIPS, gold, or REITS.

Likewise for other currencies.

I've never owned other currencies to hedge against the devaluing of the dollar. I simply own a few international growth companies to take advantage of it.

I don't think many others have either.
Read 7 tweets

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