Thread

$GLBE

Anyone doing actual analysis (would love to see it).

Profit margin (in long term) starts with gross margin. then gets smaller to bottom line.

But, for young companies, operating margin doesn't matter yet.

What does matter is the aspiration in 5+ years.

...

/1
$GLBE

...

So, we can start with GM as our 'max' and then worry about the rest later.

When I look at this company, with 5 minutes of effort, so *very* little effort, I see something icky...

...

/2
$GLBE

Gross Margin per cent:

$GLBE: 31%
-
$SHOP 54%
$BIGC 79%
$JMIA 69%
$WISH 61%

I don't know the business well enough to even comment other than, 'well that's low.'

Perhaps it's just a matter of time. But, generally GM% hits close to scale very quickly as we see above

/3
$GLBE

Anyway...

Brilliant business and growth with super focused management turning a positive operating margin is just gorgeous.

But... is anyone looking at long term margins aspirations?

As it is, they look bleak. But I have no strong opinion, yet.

/4
$GLBE

The point is, revenue growth is just one part.

If it is simply reinvesting to growth and long term GM are in the 60% range, then yes, it's a wow.

If not, then not.
$GLBE

I have no thesis one way or the other. It's one of many that I'm going to research and speak w execs.

Just a few 5 min observations.

6/6

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$ROKU What @Roku CEO Anthony Wood is doing with @TheRokuChannel is a display of some of the highest business acumen in practice that media has seen in a generation.

It's absolutely next level and still a decade ahead of the rest.

/1
$ROKU

... This has thrust Roku into an unprecedented opportunity.

First...

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$PD

* Revenue: $63.6M vs analyst estimates of 62.0M
* EPS: -$0.08 vs -$0.09

Full Year Guidance:
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* EPS: -$0.39 vs -$0.399
$PD

* Customers with annual recurring revenue over $1,000,000, up 55% year-over-year

/2
$PD

Net cash provided by operations was $1.6 million, or 2.5% of revenue, compared to net cash used in operating activities of $0.2 million, or negative 0.4% of revenue,

/3
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/1
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* The long run is just a collection of short runs you have to put up with.

* Long term is harder than most people imagine, which is why it’s more lucrative than many people assume. Everything worthwhile has a price, and the prices aren’t always obvious.

/2
* Saying you have a 10-year time horizon doesn’t exempt you from all the nonsense that happens during the next 10 years. Everyone has to experience the recessions, the bear markets, the meltdowns, the surprises and the memes at the same time.

/3
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