According to reports, this year’s Thanksgiving holiday, U.S. technology investors have a large number of IPO application documents to read. Doordash, airbnb, affirm, roblox and wish have all published prospectuses in the past eight days, and all of them plan to go public by the end of the year.
After the election, the U.S. stock market rebounded, and the U.S. stock index rose to a near historical high. In addition, the public market demand for high growth investment was also very obvious. Therefore, in the view of these technology enterprises, this is a good time for IPO.
The above five enterprises are all enterprises serving consumers. At present, they are facing a surge of new coronavirus confirmed cases and great changes in the economy. It can be predicted that they will be very busy in the coming Thanksgiving holiday. The situation in December will be quite different from the IPO wave in September, when several enterprise software companies, such as snowflake and Palantir, completed their IPO in September.
During the outbreak, revenue from doordash, a delivery delivery service, more than tripled in the third quarter of this year as many restaurants shut down their in-house service and turned to take out as their main business source. In the last quarter, revenue from roblox, a children’s game platform, also increased 91% compared with the same period last year, as schools were closed due to the epidemic and many users began to look for new ways of entertainment without gathering.
Affirm, an online lending service that provides consumers with clothing, electronics, household goods and other goods, nearly doubled its revenue in the latest quarter as people began to shop online more and more. Wish, the online discount retail platform, also benefited from the e-commerce boom, but its growth in the third quarter was not very high, only 33%.
Airbnb is one of the companies most affected by the epidemic, and the tourism economy suffered a serious setback due to the epidemic. However, the company has successfully found a niche market by combining holiday short rent with remote office.
Here’s what we learned from each company’s s S-1 file, in order of submission time:
The company’s third quarter revenue jumped to $879 million from $239 million in the same period last year, spurred by a 237% increase in orders. In the first nine months of this year, orders rose to 543 million from 181 million in the same period last year,.
Net loss narrowed to $42 million from $152 million before. By the third quarter of 2020, doordash had a positive contribution rate of 23%, compared with a negative contribution rate of 32% last year, which means that the company has finally made money on average from every order.
Doordash has taken advantage of its share growth in recent years (the company controls almost 50% of the U.S. delivery market) to bring its brand to the fore as consumers accept online ordering at an unprecedented rate. After the epidemic is over, American consumers will eventually return to dining out, and restaurants that rely on takeaway will continue to look for more affordable ways to operate. As doordash warned in the prospectus. “Due to the impact of the covid-19 epidemic, the situation that accelerated the growth of total orders may not continue in the future. We expect the growth rate of total order volume to decline in the future.”
Compared with the same period last year, airbnb’s third quarter revenue fell 18% to $1.34 billion. This is a fairly significant decline, and the company’s order volume is expected to decline even more in the fourth quarter, as people no longer travel due to the epidemic. But others are using airbnb for short-term urban rentals as a way of telecommuting, a business that has helped the company weather the crisis better than hotels, airlines and online travel agencies.
In the third quarter, airbnb’s net income was $219 million, down slightly from the same period last year. The company cut 25% of its staff in May and cut its marketing budget, resulting in a 75% drop in sales and marketing costs.
Previously, airbnb was seen as the largest technology IPO in 2020, valued at $35 billion, and has been promising to change the way people travel. At the end of the first quarter, after business stalled, airbnb had to turn to the lending market, get $2 billion in high interest financing and cut its valuation. Potential long-term investors can see airbnb’s ability to adapt to new realities faster than its competitors as a reason to start buying its shares now. In addition, the blockade will not last forever, which is also one of the reasons to expect the company’s business to recover.
In the quarter ended September 30, revenue rose 98% from a year earlier to $174 million. The biggest growth came from their merchant networks, which are online businesses that offer confirm loans when buying goods. The company has partnerships with more than 6500 businesses, including peloton, West Elm and Potter barns, as well as Shopify.
In the quarter, affirm’s net loss fell by about half from a year earlier to $15.3 million. In percentage terms, the biggest cost increase came from sales and marketing, which quadrupled to $22.6 million due to the new partnership with Shopify.
Compared with the same period last year, the number of active consumers of the company surged from 2.4 million to 3.9 million in the third quarter of this year. The trend of direct consumer orientation has promoted the development of online commerce, as well as the rise of Shopify’s stock price and the development of affirm.
Revenue rose 91% in the third quarter to $242 million. The game platform allows children to create a virtual character, which can be used in multiple games. If you want to use advanced functions, players must pay for a virtual currency called robux to recharge. In the third quarter, the number of daily active users of the platform nearly doubled from the same period last year to 36.2 million. What the company calls “hours of participation” more than doubled to 8.7 billion hours.
Net loss in the third quarter more than doubled from a year earlier to $48 million. Sales and marketing costs were flat with the same period last year, but developer conversion fees increased significantly, more than tripled, to $81.9 million. Developer conversion fees are the money roblox shares with game developers when consumers consume in their works. “Many users end up being developers and creators, and almost all developers and creators start with users,” the company said in its prospectus
Roblox is very popular among overseas youth groups, and its popularity is no less than Fort night. Among children under 13 years old, roblox users can even spend more time than YouTube.
But wish’s business has been mediocre in recent years, with annual revenue only increasing by 10% year-on-year in 2019, until the third quarter of this year, revenue increased by 33% to $606 million. The shift to online commerce, and consumers’ growing preference for shopping on their phones, continues to benefit from wish, which is known for its big discounts. In the first nine months of 2020, monthly active users rose to 108 million from 81 million in the same period last year.
Net loss narrowed to $99 million from $134 million as the company shifted its investment to logistics platforms, reducing sales and marketing costs by 13%.
Since the merchants are mainly from China, wish’s business was seriously affected in the early stage of the epidemic. Revenue fell in the first quarter and then picked up in the second quarter. But the company said businesses on its platform would continue to be affected by supply chain disruptions and slow delivery times around the world.