Like most on here so far, the WIX had a very good month. Ended the month +38% YTD!! The month was FULL of earnings reports and each of my companies had solid to MAGNIFICENT reports! As a result, I did VERY little trading… in fact, I didn’t sell anything and only bought tiny amounts with my monthly investing funds.
Monthly performance August July Crowdstrike 10.80% 18% 18% Sea Limited 22.50% 18% 17% Data Dog 24.50% 16% 14% Roku -17.7% 14% 20% Upstart 88.70% 12% 8% Snowflake 14.50% 12% 12% FuboTV 11.90% 11% 11%
Didn’t sell ANYTHING; which is rare for me in an Earnings Month.
Reported a solid quarter yesterday. There is evidence of a slight slowdown; although its a bit difficult to discern since Q2 is usually their slowest. Magnificent numbers across the board at their scale, but slowdowns really everywhere. Customer add rate the lowest since being public (72%), for forward YoY growth rates, they replaced last year’s Q2 of 56% annualized QoQ with 54.7% QoQ. Q3 last year was 84, which might be tough to hit; especially with the guidance they gave. I think they’ll probably report YoY in the low to mid 60s. Still really good but probably not quite worthy enough of being my top position.
I plan to reduce my position slightly, probably move the funds into UPST & FUBO.
Sea Limited continuing to do what they do, grow at TRIPLE digits. Grew revenue at 160%. HO HUM. Their revenue is continuing to ACCELERATE! As I said after their Q1 report, RARELY does an ECommerce platform do better in Q1 than in Q4. They did. Q2 just continued right along. No, they aren’t SaaS so QoQ is not as useful but Q2 revenue was 30% better than Q1. Since Q1 2020, their YoY growth rates have been, 103%, 102%, 98%, 101%, 146% and now 160%!! They have successfully expanded their ECommerce into Mexico & some South American Countries! They are able to utilize their #1 in the world grossing game, Free Fire, to help push their ECommerce platform. In addition to this, they recently announced they are dipping a toe into the India market. You know, the same India that is the SECOND MOST POPULOUS COUNTRY! They are a juggernaut. As Jessica Ablamsky said the other day, “I don’t know why I invest in other companies”. haha. She was kidding of course.
For me, SE is ALL about ECOMMERCE, however, their payments is starting to make a bit of an impact as well. ECommerce is growing SUPER fast. Its now over 52% of their TOTAL revenue. Just like Roku years ago, as this continues to grow, their triple digit growth rates will also continue.
It was probably the worst kept secret that DDOG would accelerate this quarter; its been telegraphed since the Q4 report. The acceleration is even BETTER than it first appears, with the 67% YoY number. They grew at an ANNUALIZED 91% QoQ then guided for 60% growth next quarter. The big question will be will that QoQ stay in the 17-18%? If so, we might be in for another EXPLOSION as that’ll be foretelling of possibly having up to 80s YoY growth rates by Q4.
Looking deeper at the numbers, its astounding they are growing this much while their customer growth is in the mid 30% range and has been really, since at least 2019. Its a pure SaaS and cloud play. A simplified breakdown to overall growth of SaaS companies is customer growth rate + NRR.
Roku reported fantastic revenue ACCELERATION of 81% YoY. Yes, COVID quarter. It is evident that Roku is executing magnificently on getting ad dollars. Ads will continue to flow from linear TV to CTV. Roku is positioned to get more than their share of this. In addition, they will also be getting dollars that have traditionally been for targeted ads, since they own the platform.
Roku has had a down month, mostly due to what is FUD in my opinion. One big thing that hit the stock was the recycled news that TCL would be making TVs with Google’s OS built in. This news was first announced MONTHS ago. To make matters on this worse, there are some who mis-read that news as TCL would no longer be making Roku TVs. One of the FinTwitters who led this bit of misinformation was Puru and a lot of people blindly follow him.
Actual “news” that bears point to is the lower account rates. Part of the mis-information here is exactly what my initial thesis of Roku was YEARS AGO… “Its a hardware company”. Its a platform and advertising company with more of the US market than competitors. Account additions are important, yes, but they’ve already grabbed a good number of US accounts and are now monetizing it. The revenue is flowing in as can be seen by the increased ARPU (Average Revenue Per User). In addition to standard advertising, they recently hired someone to be in charge of something called T-Commerce (I think that’s what they called it), meaning TV Commerce. Gonna find a way to make it easier for people to buy stuff directly from advertisers via the Roku buttons.
I mean… well, there really isn’t anything I can add that others have not. I don’t think anyone really knows how much growth they can achieve. Today, the possibilities are ASTRONOMICAL!! I mean… they’re doing the current FANTASTIC growth just on personal loans; and in just a few banks at that. Just in this market, they can continue to grow at fantastic rates. But add in auto loans and then the mother of all loans, home loans. Its kind of a crazy to think this company could be 10x in 5 years, however, that very well could be crazy low. I really need to find a way to increase this position in my portfolio.
Reported a solid quarter. Continuing to grow triple digits AND guide at triple digits. As has been debated on here, their customer adds and RPO are reasons why people are skeptical on them. Customer adds are slowing, due to focusing on larger companies. These adds however are still at a 60% clip. We do know they are successfully adding larger accounts due to the >1M and S&P & Global 2000 company numbers they provide.
RPO on the other hand, there could be a lot of reasons for the slowing. I don’t remember who said it but I think it was perfectly stated, that while the bigger numbers keep coming in (triple digit growth with triple digit-ish guidance), I’m gonna keep on being invested.
I seriously need to get more Fubo. This company just keeps executing. I mean… ALL the numbers are looking FANTASTIC. They have a very forseeable path to PROFITABILITY. Revenue grew at almost 200% YoY. Q2 is a slower month but still grew at an annualized rate of 43% QoQ. AD revenue grew 283% YoY and annualized almost 200% QoQ. Its still a smaller portion of their overall revenue but its definitely moving in the right direction. Paid subscribers?? they grew 138% YoY and 78% annualized QoQ (IN THEIR SLOWEST MONTH).
THESE ARE FANTASTIC NUMBERS. Now for the good part… THIS ISN’T EVEN THE REASON I’M SO BULLISH!!
What is that you ask? Its all about SPORTS BETTING!! That doesn’t even come online until Q4. However, they are making ALL THE MOVES. They added AZ to their list, got final approval in Iowa, pushed an AWESOME commercial for their sportsbook. Since they own the streaming platform and the sportsbook, these two will AUTOMAGICALLY sync in a matter of moments, unlike rivals of theirs who take minutes. They will be able to do a TON of things in the betting world that their competitors can only dream about!
Whew, that was a lot! Hope September continues to roll like August did! As almost everyone on here says, I am AMAZINGLY grateful for Saul’s Board!! It has truly changed my life and that of my family. This board is enabling me to do things for my family that I could not have otherwise done.