A short 🧵on $LULU's Business Overview - Jan 23 write-up:

1/ $LULU has 3 reporting segments: Company-operated stores, Direct to Consumer (e-commerce), and Other. COS generated 46% of sales or $3.4B on a TTM basis, while DTC accounted for 44% of sales or $3.3B. 2/ The operating margin for Company-operated stores since FY12 until today averages at 27%, while the operating margin for Direct to Consumer averages at 42%. The higher margin of DTC is expected since costs like rent, electricity, and wages are minimized relative to COS.

Have you read our deep-dive on $AMZN? If not, you might be missing out.

Here’s what @IFB_podcast had to say about it. (Thank you for giving us the right to share your feedback publicly) 🙏

Note: comments relevant to the paid content were intentionally left out. “Hey guys, great writeup on AMZN!!...Loved the breakdown of the different business segments, along with the detail around the 1P and 3P which I didn't know as much about. Fantastic use of the differenet data sources to help augment your points.”

A short 🧵on $AMZN:

1/Online stores are $AMZN's bread and butter, contributing 43% of revenue in FY22 and ⬆ at a CAGR of 15.7% from FY14 to FY22. Key products include Kindle, Fire TV, Amazon Echo – Alexa (global leader in smart speaker devices). 2/ International e-commerce growth and online grocery are expected to drive further growth for Amazon's online stores. Andrew Jassy, CEO, considers grocery a strategic area while he also anticipates a large profitable international e-commerce business.

1/4 $PYPL Venmo

- doing almost $0.25 trillion of TPV
- close to 90 million active accounts of (55 million active monthly accounts)
- driving over $100 million of revenue every month
Dan Schulman, CEO
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➡️ A run rate revenue of $1.2B, i.e. 33% higher that 2021 revenue c$900M 2/4
- creating teen accounts -> addressable market for Venmo by some 20 million or 30 million incremental people.
- looking at international expansion there
Dan Schulman, CEO
​
➡️ International expansion could be huge. Any incremental increase in TAM (teen accounts) is a bonus

1/ Thread on $ZM Valuation

Further to our recent review of $ZM Q2’23 and the pullback in price we decided to proceed with a valuation estimate. Our results and assumptions 👇 2/ Revenue 10.3% GAGR, is a result of 18.3% CAGR for the enterprise business and 0.2% for the online business.

Enterprise growth was gradually decreased from 24.6% in FY’23 to 15%.

For the online we assumed that revenues will flatten in FY’24 and return to growth thereafter.

1/7
We released our company snapshot at @SubstackInc on $VRTX, a biotech company which is a leader in the treatment of Cystic Fibrosis.

Snapshot Summary ⬇ 2/7
- $VRTX is a dominant leader in Cystic Fibrosis with its commercial drugs generating $7.6 billion in revenue during fiscal 2021.

- Its blockbuster drug TRIKAFTA/KAFTRIO can address 90% of all mutations, has high efficacy rates, and its patent expires in 2037.