Brandon Dietz Profile picture
Mar 3 5 tweets 4 min read
1/#Roblox (#RBLX) LT Comp Thread

RBLX CEO David Baszucki has a $3.3-$4.3bln LT equity comp plan that pays out if #RBLX shares are $165-$375 by March 2028. David cut his base salary to $0 (prior $800k) at the IPO. All of his compensation out to 2028 is via equity/RSU/options. Image
2/The prize is in a "Founder and CEO Long-Term Performance Award" that will grant David 11.5mln Class A shares if #RBLX exceeds seven price hurdles between $165-$375 a share by March of 2028. The notional value in RBLX shares at the hurdle price for each tranche is $3.3bln.
3/At the top end tranche #RBLX price of $375 the award is worth $4.3bln.

S-1: "Mr. Baszucki was particularly receptive to receiving the Founder and CEO Long-Term Performance Award as he believes that he should only be rewarded if we achieve significant long-term performance".
4/I'd be highly receptive of that arrangement too! Sign me up.

The LT award is in addition to some other outstanding options/RSU's as well as Baszucki's current ~64mln shares. Adding all together #RBLX's CEO has a large incentive to create long term value for #RBLX shareholders
5/With #RBLX at ~$46/share, upside to get to the $165-$375 tranches is +260%-720% by March of 2028 (24%-42% annualized). It would also put RBLX well over $100bln-$250bln in market cap in just ~6yrs.

This would be quite the accomplishment.
#Roblox #RBLX Image

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More from @EquiCompound

Apr 23
1/#Maytronics MTRN.IT
During my $POOL Q1 review I came across a terrific company, #Maytronics, the leading manufacturer of pool cleaning robots. has 50% market share, 25% ROIC, 20% margins, and grew sales 10x over ‘04-‘21. Some key notes... Image
Headquartered in Israel, #Maytronics manufacturers a lineup of pool cleaning robots under the Dolphin brand name. In '21, generated USD $437mln in revenue (1.4bln ILS) and $110mln in EBITDA (334mln ILS) (24% margin). Has a USD $2bln mkt cap with $62mln in net debt (0.6x) Image
MTRN.IT makes an array of pool cleaning robots for private/public pools. Private pool robot ASP’s range $600-$1700. Price leader, generally gets premium pricing due to strong brand reputation, superior product and a superior distribution/service network Image
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Apr 22
1/Pool Corp $POOL Earnings
$POOL had another impressive, blow out qtr. While shares were up as much as 9% on 4/21 they closed down -1% and were down again today despite solid results and a continued strong outlook. Key issue is '23. This thread reviews $POOL results and key notes
Revenue was up +33% (street +20%) on a tough comp (Q1’21 +57%) with $POOL gross profit up +49% (street +25%) and op income up +83% (+32%). Big margin expansion – gross margin +327bps to 31.7% (street 29.7%, +135bps), op income +452bps to 16.7% (street 13.4%, +128bps)
$POOL 2022 sales growth now seen at the high end of prior 17-19% range (street +18%) Expects at least 10% from pricing (prior 9-10%, YTD 10-12%) 5% via M&A (prior 5%) Gross margin still to be flat to 2022 – 30.5% (street 30.5%) EPS growth seen at 20-25% (prior 15-17%)
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Mar 17
1/Floor & Décor Investor Day
$FND's investor day was yesterday. Continue to be impressed by this early-stage category killer. Strong execution and one of the better names in my portfolio.

For a quick walk through see this thread

Below are some notes
2/Retail Conversion Rate
Homeowner customers that shop at $FND ultimately purchase over >80% of the time. Professional customers that shop at $FND purchase over >90% of the time. Pretty impressive. Average brick and mortar retail conversion rates are 20%-40% for most retailers
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Mar 16
1/ SiteOne Landscape Supply $SITE Thread
$SITE is a high-quality boring business, very similar to $POOL and other distributors. With shares off -31% from recent highs I wanted to provide a quick walk through of the business. If you like $POOL $WSO $FND etc. you will like $SITE
$SITE is the largest and only national scale distributor of landscaping supplies in the US. Sells irrigation, hardscape, nursery, and other items via a 590-branch network in 45 states and 6 CA provinces. Had ’21 revenue of $3.5bln with $415mln in EBITDA (11.9%/sales).
3/Market Share [1]
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Mar 12
1/ Floor & Décor (FND)
Looking forward to the $FND analyst day on Wed 3/16. $FND, is a high-quality business compounding LT over 20%/yr. Shares are off -36% from 11/21 and I’m currently re-underwriting $FND for my portfolio. This thread discusses key items around the $FND model. Image
$FND is a specialty retailer that operates 160 large (~75k sq/ft) warehouse stores across 33 states selling tile, stone, wood, laminate, vinyl and other flooring products. Generated $3.4bln in ’21 revenue, $485mln in EBITDA (14.1% margin) and has a ~$10bln mkt cap
3/Comp Advantage [1]
$FND primarily competes vs. home improvement centers ( $HD, $LOW, #Menards), specialty flooring ( $TTS), and local independents/mom & pops.

$FND has:
(1) larger box at ~75k sq/ft vs. $HD/ $LOW 3k-5k sq/ft flooring dept. and specialty/indep <20k avg. box
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1/#Skechers $SKX UBS Conference Notes

$SKX shares have been torpedoed (-22% since mid Feb) along with other international/retail names on the Russia/Ukraine conflict and consumer spending concerns. $SKX just presented at a UBS conference. Below are some quick notes: Image

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Read 11 tweets

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