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India startup working with eCommerce giants expects drone delivery in two months

India may soon see commercial delivery services using drones, according to Skye Air, a startup company working with some of the largest eCommerce brands. The Indian government had recently revised rules regarding unmanned aerial vehicles, permitting companies to experiment with drones for delivering products like food, medicines, and even courier parcels......»»

Category: topSource: digitimesNov 25th, 2021

EV Roundup: TSLA Under NTSB Scrutiny, WKHS Drops Suit Against USPS & More

While Tesla's (TSLA) Model 3 crash in Florida triggers 2nd NTSB scrutiny for the firm this year, Workhorse (WKHS) voluntarily withdraws its lawsuit against USPS over mail truck contract. The electric vehicle (EV) market has been growing prolifically, with both legacy automakers and pure-play EV makers stepping up efforts to launch new models. While electric cars are taking off in a big way, the pickups have been rather slow in shifting gears to electric. But that’s about to change soon. Last week, the first edition version of Rivian Automotive’s all-electric R1T pickup truck rolled off the assembly line at the company’s Illinois factory. With that, this California EV startup becomes the first company to bring an e-truck into the U.S. market, beating auto giants like Tesla TSLA, Ford F and General Motors GM. Deliveries of the “Launch Edition” R1T truck will commence this month. Keeping up with the heightened competition, Ford also commenced pre-production of F-150 Lightning. The company will invest another $250 million to ramp up the production capacity of its upcoming e-pickup to 80,000 annually.Meanwhile, Canada-based EV maker GreenPower Motor GP announced the delivery of its first fully-electric BEAST School Bus to Santa Maria Joint Union High School District. Another Canada-based EV player ElectraMeccanica SOLO also revealed plans to launch deliveries of its flagship SOLO EV for a select group of early reservation holders and fleets effective Oct 4, 2021. Deliveries to other customers and reservation holders will step up gradually once the output ramps up. Meanwhile, China-based EV startup XPeng XPEV officially launched its P5 family sedan at a price range of RMB157,900-RMB223,900. With customer deliveries in China scheduled to commence by October-end, this would be the world’s first production vehicle with built-in LiDAR technology.Recap of the Week’s Most Important StoriesNikola Corporation NKLA and CNH Industrial’s Iveco truck unit inaugurated the joint-venture manufacturing facility in Germany, dedicated to the development of Nikola Tre electric heavy-duty trucks. The production line, currently anticipated to be capable of manufacturing 1,000 units per shift a year, will likely be substantially ramped up in the upcoming years. The first Nikola Tre models produced at the facility will be deployed for select customers in the United States in 2022. The companies also announced their collaboration for testing and subsequent implementation of heavy-duty EVs and charging infrastructure at the Port of Hamburg during 2022. Tesla’s Model 3 crash in Florida last week, which killed two people, will be investigated by the U.S. National Transportation Safety Board (“NTSB”). It is still debatable whether the vehicle involved in the crash was equipped with Autopilot or not. The NTSB will commence its investigation today and complete the work within a week so as to issue a preliminary report in about 30 days. This will be the second probe by the agency in a fatal accident involving Tesla’s models in less than six months’ time. The NTSB is also investigating a lethal crash in Texas involving a Model S sedan that crashed in a tree and burst into flames, killing both passengers in April. Meanwhile, Wedbush Securities, a Los Angeles-based investment firm,anticipates Tesla — which currently carries a Zacks Rank #3 (Hold) — to deliver 900,000 cars in 2021, followed by 1.3 million deliveries in 2022. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Workhorse Group Inc. WKHS voluntarily withdrew its lawsuit protesting the United States Postal Service’s (USPS) decision to let Oshkosh’s Defense arm build the next-generation mail truck. The dismissal of the lawsuit comes from Workhorse’s newly-appointed CEO, Rick Dauch, who took over just six weeks ago, following several quarters of unattained production targets. Reportedly, Dauch sees multiple business opportunities for Workhorse’s last-mile delivery trucks and drone system, and wants to kindle the company’s focus on taking advantage of those. Dauch has further stated his intention of cooperating with the government on future electric vehicles (EV), rather than challenge it through litigation.General Motors is working with South Korea's LG Energy Solution, its long-time EV partner, in tracking and solving problems linked to the battery fires in Chevrolet Bolts that have paralyzed the vehicle’s entire production line. General Motors has discovered two manufacturing defects in the battery cells supplied by LG from two of its plants (one in South Korea and one in Michigan) — a torn anode tab and folded separator — which, in rare circumstances, might lead to a battery fire. This has triggered three recalls (affecting roughly 142,000 cars) and cost $1.8 billion to the automaker since last November. To resolve the issue, the entire battery pack for the older models will be replaced, while the newer models will have only the defective modules within the pack replaced. The U.S. auto giant has extended the suspension of Bolt EV and EUV production till mid-October.Price PerformanceThe following table shows the price movement of some of the major EV players over the past week and six-month period.Image Source: Zacks Investment ResearchIn the past six months, all stocks have decreased, apart from Tesla, XPeng, and Li Auto. Canoo bore the maximum brunt, with shares declining 55%. The past week also displayed a mixed price trend, with Lordstown Motors registering the maximum gain and Li Auto being the worst performer.What’s Next in the Space?Stay tuned for announcements of upcoming EV models and any important updates from the red-hot industry. Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ford Motor Company (F): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report GreenPower Motor Company Inc. (GP): Free Stock Analysis Report Workhorse Group, Inc. (WKHS): Free Stock Analysis Report ElectraMeccanica Vehicles Corp. (SOLO): Free Stock Analysis Report Nikola Corporation (NKLA): Free Stock Analysis Report XPeng Inc. Sponsored ADR (XPEV): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

SCOTT GALLOWAY: Here are the companies I predict will get acquired - and by whom - in 2022

Tech giants are buying up smaller media firms left and right because of one very valuable asset: their audiences. Peloton is one of the companies Galloway predicts could be acquired next year. Ezra Shaw/Getty Images Scott Galloway is a bestselling author and professor of marketing at NYU Stern. The following is a recent blog post, republished with permission, that originally ran on his blog, "No Mercy / No Malice." In it, Galloway talks about which media and content companies he predicts will get acquired. Three weeks ago, "someone" floated the idea of PayPal buying Pinterest. PYPL plunged 5% the next day (shedding the value of Under Armour) and the company then denied the rumors. Our thesis: PayPal's management leaked the story as a trial balloon, and let it float away when the market threw up on the notion of PinPal (couldn't resist).PayPal should have had the courage of its convictions. Pinterest is a great product with a shitty business model, as evidenced by what feels like a desperate attempt to monetize with ads that pollute the platform. The asset here is not the business model or cash flow, but the 444 million people (nearly the population of the US and Russia combined) who log on to Pinterest every month. The fat lady likely hasn't sung: The asset is now 10% cheaper than it was pre-balloon. Scott Galloway In an attention economy, scaling users solves most economic problems. And problems are solved faster when you have a business model than can monetize each user at a healthy rate. Fintech is good/great at this, and the market cap per user of these two firms reflects this. Scott Galloway The lesson here is that advertising is a shitty business. It's (much) less shitty for companies that have the populations of the Western hemisphere and can construct a digital corpus based on data they capture. But they still don't command the premium of fintech. Social platforms must find more products to spray across their user base, while fintech companies need more users.This is the reason we'll see a flurry of acquisitions of media/content firms whose audiences can be better monetized across a payment platform. Amazon Prime Video and AppleTV+ are validation that media is worth more as part of a non-media company than it is as a standalone business. In sum, media has become featurized.Eyeball acquisitionFirms in every sector are realizing that the best way to reduce their CAC (customer acquisition cost) is to produce proprietary content that keeps customers engaged and increases word of mouth. Media companies cultivate engaged communities that take years, if not decades, to build. While a Gulfstream 500, at $45 million, seems impossible to rationalize economically, it can be justified if you have more money than time (i.e., if you're an old rich person). Fintech firms are about to embark on the mother of all midlife crises and pay huge sums for private jets posing as media firms.It's already started. Hubspot acquired The Hustle, a media company that produces a newsletter and a podcast. JPMorgan acquired The Infatuation, a publisher that provides restaurant recommendations and produces live food events. Square acquired Tidal, a music streaming service. Robinhood acquired MarketSnacks, a financial news company that offers bite-size business updates. Many others are purchasing audiences instead of products.But not all eyeballs are equal. Eyeball value is a function of several factors:AffluenceEngagementLoyaltyThe eyeball market is hierarchical. Big Tech floats atop the food chain. Legacy media whales swim just below. Crawling on the seabed are thousands of microcommunities - newsletters, messaging channels, recommendation sites, influencer followings - that present unique monetization opportunities for the predators above. Scott Galloway Match gameIf you're not buying eyeballs/audiences, you're buying features/products. Big Tech has been bolting on capabilities this way for decades. The iPhone is a Frankenstein of acquired tech, from the touchscreen (FingerWorks, 2005), to the SoC (P.A. Semi, 2008), to Siri (Siri, 2010). Amazon bought robotics (Kiva, 2012), grocery stores (Whole Foods, 2017), and smart doorbells (Ring, 2018). Microsoft launched its empire on a product acquisition (DOS, which it bought way back in 1981).Then there's the unlikely peanut-butter-and-chocolate idea, somewhat out there, best considered when shareholders are under the influence of an edible or a frothy market. In 2005 the founders of a small mobile startup were pitching VCs for financing when they took a meeting with two guys named Larry and Sergey who owned a search company. They wanted to buy the mobile startup, they said, and give the product away for free. Google's decision to acquire Android is obvious in hindsight, but was strategic genius at the time.The hard truth is that most high-profile acquisitions don't pay off. But the ones that do pay off bigly. These are some of the largest bets on the table. An exercise I often do when asked to speak to boards of directors: Imagine it's three years from now and your market cap has trebled. What likely happened to get you there? I find that framing gives board members, who spend a lot of their time being skeptical, worrying about downside, license to think big. And typically, some of the ideas this exercise generates are acquisitions that seem crazy at the time but may prove to be crazy genius.Let's go crazyTesla could buy truck stop company Pilot Flying J. Tesla's been building superchargers at the company's locations for several years, but bringing the entire operation in house would let it upgrade the user experience and extend Tesla's brand and value proposition - think Apple Store. Vertical integration is in Tesla's DNA - it makes more of its own components than traditional auto manufacturers do, and Elon has said that "building the machine that makes the machine" is a critical success factor. The company owns its own sales and service network already.An integrated Tesla experience at the charging station would make its passenger cars more valuable today and a true long-haul variant of the Tesla Semi more viable tomorrow. It might look like a step backward for the EV king to start selling gasoline, but what better way to put itself in front of potential electric vehicle customers? Many long haul truckers own their own rigs. Elon will have to pry Pilot Flying J away from Warren Buffett, but a few billion in Tesla stock should break it loose. Maybe a Twitter poll?Another valuable acquisition target is NFT marketplace OpenSea, which lets users trade tokenized digital assets - usually art - on the blockchain. With a 97% market share, it's already made a name for itself as the premier operating system for NFT trading. Last week it crossed $10 billion in all-time sales volumes. Payment processors including PayPal should be drooling over this firm. It provides immediate entry to a herd of young, highly engaged crypto enthusiasts and could help modernize PayPal's retail footprint. PayPal can alternatively build up its own crypto-trading platform - it's working on this with Venmo - but there's a big difference here between jumping on the bandwagon and owning it. If PayPal had processed the more than $5 billion worth of sales on OpenSea in the last two months, it would have raked in almost $200 million at current rates.But the low-hanging fintech-media buy is for Dorsey's taking. Square has established a strong foothold in payments and acquired a number of other interesting features in the process, such as Tidal (music streaming), Caviar (food delivery), and Afterpay (lending). The most obvious, the purchase that could identify Square as the overnight leader in the race to SuperApp, is social. Fortunately for Square, its cousin twice-removed is a social media giant. Dorsey could unite Square and Twitter and initiate its march toward becoming the next WeChat. He'd also have the luxury of running two mega corporations from the same office.2022My annual predictions are coming up in a few weeks. Some likely M&A-related predictions for 2022:The regulatory big chill around big tech and acquisitions thaws: either the DOJ proves flaccid, or it breaks up companies and oxygenates the marketplace. Both outcomes give clarity, and these companies will begin acquiring again.2022 is the biggest year in M&A in recent history, as the "Race to the SuperApp" inspires leviathans to couple with other leviathans.Fintech and legacy banks go shopping for media and content.Twitter cleans up the fake accounts suppressing its revenue, the stock drops below $40, and Jack unites his sister-wives (Square acquires Twitter).Peloton gets bought. Its likely acquirers? Nike or Apple.An NYU professor acquires the Rangers International Football Club, PLC.Re: the last one, the best way to predict the future is to create it.Life is so rich,ScottRead the original article on Business Insider.....»»

Category: topSource: businessinsiderNov 12th, 2021

EV Roundup: F Partners With Redwood, LI Trims Q3 Delivery Guidance & More

While Ford (F) ties up with Redwood Materials for EV battery recycling, Li Auto (LI) cuts delivery view for the third quarter of 2021 amid chip crisis. The electric vehicle (EV) revolution is accelerating, with companies leaving no stone unturned to establish a strong foothold in this domain. Consumers are demanding more electric options and manufacturers are also rising to the occasion. While EV makers are getting all charged up, countries, states, and cities are also stepping up their clean energy targets, turning the future in favor of e-mobility. The pressure for legacy automakers to make a transition from conventional fossil fuel vehicles has been mounting. In fact, last week, BMW AG and Daimler AG DDAIF were sued by a German environmental group for refusing to strengthen their carbon emission goals. While the car giants have plans to shift from petrol and diesel vehicles to green modes of transportation, the plaintiffs contend their strategies are inadequate to meet the global climate targets and are of the opinion that the companies need to set more ambitious goals, including terminating the sale of fossil-fuel cars by 2030. Rundown of the Week’s Most Important StoriesDaimler announced that it has joined forces with Stellantis and TotalEnergies in an EV battery venture in Europe to secure supplies for Mercedes-Benz. The auto biggie is set to hold a 33% interest in battery manufacturer Automotive Cells Company (ACC) — a joint venture established by Stellantis and TotalEnergies in 2020. The entire project is expected to be worth more than 7 billion euros to achieve a capacity of at least 120 gigawatt hours in Europe. By the end of the decade, Daimler’s investment in the battery facility venture is not likely to exceed $1.2 billion or 1 billion euros, starting with a mid-three-digit-million spending next year. ACC is set to commence supplying batteries for Mercedes-Benz by mid-decade.Ford F announced that it is partnering with Redwood Materials — a leading battery materials company — to make EVs more sustainable and economical for customers by building a domestic battery supply chain, creating recycling options for end-of-life vehicles, and enhancing battery production. The collaboration with Redwood will help ensure that the right infrastructure is in place to cost-effectively recycle the end-of-life Ford batteries for creating a solid pool of domestic raw materials and thus, making EVs economical. The U.S. auto giant has invested $50 million in Redwood to support the latter’s expansion in the United States.Li Auto LI lowered its third-quarter 2021 delivery guidance. The China-based EV maker now expects to deliver 24,500 vehicles in the third quarter, down from the previous projection of vehicle deliveries between 25,000 and 26,000 units. Amid heightened pandemic-induced concerns in Malaysia, the production of chips dedicated for Li Auto’s millimeter-wave radar supplier has been severely disrupted. This prompted the company to slash its delivery guidance for the third quarter. Li Auto currently carries a Zacks Rank #4 (Sell).Volkswagen AG VWAGY announced that it is commencing the construction of a production plant for battery systems in Hefei, China. The plant, named VW Anhui Components Company, will be the first of its kind to be fully owned by the China wing of the company and will begin production in second-half 2023. The Germany-based auto biggie presently operates an EV production plant together with JAC in Hefei, known as Volkswagen Anhui, and the new plant will be set up in its vicinity. The automaker plans to invest more than $164 million in the new plant by 2025. The initial capacity will be 150,000-180,000 battery systems annually for the company’s Anhui EV facility.Allison Transmission ALSN entered into a strategic collaboration partnership agreement with Jing-Jin Electric (“JJE”) to accelerate the development of best-in-class electrified powertrain solutions for global commercial vehicles. The collaboration aims to bank on JJE’s dominance in electric motor and inverter development, and its robust foothold in the commercial vehicle electrified powertrain market in China, while exploiting Allison’s expertise in fully electric and electric hybrid commercial duty propulsion systems. Additionally, Allison has pledged to provide debt financing to back on JJE North America’s efforts for commercial vehicle electric drive product development, testing and manufacturing.Blink Charging BLNK made two announcements that will expand its distribution channels and ease out the access of its sustainable EV charging stations. It announced that Sourcewell, a self-sustaining government organization offering contract purchasing solutions, has awarded it with a cooperative purchasing contract in the Electric Vehicle Supply Equipment category. The purchasing contract will make its EV chargers accessible to a broad range of entities. In another development, Blink signed an agreement with the city of San Antonio to install its first publicly accessible EV charging station at the San Antonio Zoo. The deal paves way for the deployment of 202 Level 2 charging stations and three DC fast-chargers across the city.Honda Motor HMC announced that it is targeting initial annual sales of 70,000 units for the all-new electric Prologue sport utility vehicle (SUV) when it first hits the U.S. market in 2024. The Honda Prologue SUV will be the first volume battery-electric vehicle for North America. In addition to Honda Prologue, the company will also unveil an all-electric Acura SUV in 2024 in North America. Both Honda Prologue SUV and Acura SUV will utilize General Motors’ Ultium-branded EV architecture and battery system. Honda currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.General Motors GM unveiled three new electric motors for Ultium-based EVs at the 2021 Mackinac Policy Conference. The motors — a 180-kilowatt front-drive motor, a 255-kW rear and front-drive motor, and a 62-kW all-wheel-drive assist motor — will power the automaker’s future EVs and debut on the 2022 GMC Hummer EV. These are designed in-house by General Motors. Additionally, the company has developed the software for Ultium Drive’s motor controllers, which, per the auto biggie, is crucial for catering to the propulsion needs of various vehicle types with a minimal set of components. This new controller is also going to be first integrated into the GMC Hummer EV. In a separate development, General Motors announced an investment of $300 million in China’s autonomous driving startup Momenta.Price PerformanceThe following table shows the price movement of some of the major EV players over the past week and six-month period.Image Source: Zacks Investment ResearchIn the past six months, all stocks have decreased apart from Tesla, XPeng and Li Auto. Lordstown bore the maximum brunt, with shares declining more than 33%. The past week also displayed a mixed price trend, with Canoo registering the maximum gain.Li Auto was the worst performer of the past week, with its shares sliding 10.2%. In fact, close peers XPeng and NIO also dipped 9.4% and 5.6%, respectively. The big dip in these companies was sparked amid fears that the highly indebted China-based real-estate developer Evergrande Group could possibly collapse, resulting in a wave of defaults in China's bloated property market.What’s Next in the Space?Stay tuned for announcements of upcoming EV models and any important updates from the red-hot industry. Also, watch out for September delivery updates from NIO, Li Auto and XPeng that are set to be reported later this week. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. You know this company from its past glory days, but few would expect that it's poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks' Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ford Motor Company (F): Free Stock Analysis Report Daimler AG (DDAIF): Free Stock Analysis Report Honda Motor Co., Ltd. (HMC): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report Blink Charging Co. (BLNK): Get Free Report Volkswagen AG (VWAGY): Free Stock Analysis Report Li Auto Inc. Sponsored ADR (LI): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 27th, 2021

Reitmans (Canada) Limited announces its results for the 13 and 26 weeks ended July 31, 2021

MONTRÉAL, Sept. 22, 2021 /CNW Telbec/ - The Company's results for the 13 weeks ended July 31, 2021 ("second quarter of 2022") and the results for the 26 weeks ended July 31, 2021 ("year to date fiscal 2022") and the respective comparative periods of the 13 weeks ended August 1, 2020 ("second quarter of 2021") and the 26 weeks ended August 1, 2020 ("year to date fiscal 2021") separately present continuing and discontinuing operations as described below under "Discontinued Operations". 13 weeks ended July 31, 2021 Despite an overall net reduction of 29 stores, sales for the second quarter of 2022 increased by $28.3 million, or 19.7%, to $172.3 million, primarily due to the Company's store network operating capacity being closed for fewer total number of days while under partial lockdowns during the second quarter of 2022 as compared to a phased store re-opening from full lockdowns during the second quarter of 2021 (see section entitled "COVID-19 and Other Key Company Updates") and an increase in the Company's e-commerce sales. Gross profit for the second quarter of 2022 increased $24.4 million to $95.7 million as compared with $71.3 million for the second quarter of 2021. Gross profit as a percentage of sales for the second quarter of 2022 increased to 55.5% from 49.5% for the second quarter of 2021. The increase both in gross profit and as a percentage of sales is primarily attributable to lower markdowns and promotional activity in the second quarter of 2022 combined with a favourable foreign exchange impact on U.S. dollar denominated purchases included in cost of goods sold, partially offset by higher merchandise freight costs as the global shipping industry disruption required an increased usage of air freight shipments to meet customer demand. Results from operating activities from continuing operations for the second quarter of 2022 were earnings of $25.0 million  as compared with a loss of $26.7 million for the second quarter of 2021. The increase in earnings of $51.7 million is primarily attributable to the increase in gross profit from higher sales and lower promotional activity and a decrease in overall operating costs of $27.3 million. The decrease in overall operating costs is primarily attributable to a decrease in restructuring costs of $29.4 million, fewer stores, improved lease arrangements, lower depreciation and amortization of $4.8 million, a decrease in impairment  charges of $ 2.5 million and a decrease in overall freight costs of $3.1 million, partially offset by a decrease of $7.4 million in financial support from both the Canada Emergency Wage Subsidy ("CEWS") and Canada Emergency Rent Subsidy ("CERS") programs, higher store personnel wages as the Company's stores were closed for fewer days and higher digital media spend during the second quarter of 2022. Net earnings from continuing operations for the second quarter of 2022 was $23.9 million ($0.49 basic and diluted earnings per share) as compared with a $27.4 million net loss ($0.56 basic and diluted loss per share) for the second quarter of 2021. The increase in net earnings from continuing operations of $51.3 million is primarily attributable to the increase in gross profit and a decrease in overall operating costs, partially offset by an increase in net finance costs. Adjusted EBITDA1 from continuing operations for the second quarter of 2022 was $30.9 million as compared with $16.6 million for the second quarter of 2021. The increase of $14.3 million is primarily attributable to the increase of $24.4 million in gross profit, partially offset by an increase in operating costs (excluding restructuring costs recovery, depreciation, amortization and impairment of non-financial assets) of $9.4 million and a decrease of $0.7 million in foreign exchange gain. The Company, as part of its restructuring plan, closed the Thyme Maternity and Addition Elle banners during the fiscal year ended January 30, 2021 (see section entitled "Discontinued Operations"). Net earnings from discontinued operations for the second quarter of 2022 was $10.2 million as compared to a net loss from discontinued operations of $44.6 million for the second quarter of 2021. As the discontinued banners were no longer in operation during the second quarter of 2022, the net earnings of $10.2 million was due to an adjustment to the provision for disclaimed leases reflecting the most recent settlement discussions with certain landlords. 26 weeks ended July 31, 2021 Despite an overall net reduction of 29 stores, sales for year to date fiscal 2022 increased by $68.2 million, or 30.3%, to $293.5 million, primarily due to the Company's store network operating capacity being closed for far fewer total number of days while under partial lockdowns during the year to date fiscal 2022 as compared to a phased store re-opening from full lockdowns during the year to date fiscal 2021 (see section entitled "COVID-19 and Other Key Company Updates") and an increase in the Company's e-commerce sales. Gross profit for the year to date fiscal 2022 increased $55.8 million, or 55.9%, to $155.6 million as compared with $99.8 million for the year to date fiscal 2021. Gross profit as a percentage of sales for the year to date fiscal 2022 increased to 53.0% from 44.3% for the year to date fiscal 2021. The increase both in gross profit and as a percentage of sales is primarily attributable to lower markdowns and promotional activity in the year to date fiscal 2022 combined with a favourable foreign exchange impact on U.S. dollar denominated purchases included in cost of goods sold, partially offset by higher merchandise freight costs as the global shipping industry disruption required an increased usage of air freight shipments to meet customer demand. Results from operating activities from continuing operations for the year to date fiscal 2022 were earnings of $25.4 million as compared with a loss of $82.7 million for the year to date fiscal 2021. The increase in earnings of $108.1 million is primarily attributable to the increase in gross profit from higher sales and lower promotional activity and a decrease in overall operating costs of $52.3 million. The decrease in overall operating costs is primarily attributable to a decrease in restructuring costs of $35.9 million, fewer stores, improved lease arrangements, lower depreciation and amortization of $12.0 million, a decrease in impairment charges of $8.8 million and a decrease in overall freight costs of $1.3 million, partially offset by a decrease of $3.1 million in financial support from both the CEWS and CERS programs, higher store personnel wages as the Company's stores were closed for fewer days and higher digital media spend during the year to date fiscal 2022. Net earnings from continuing operations for the year to date fiscal 2022 was $23.9 million ($0.49 basic and diluted earnings per share) as compared with a net loss of $74.1 million ($1.52 basic and diluted loss per share) for the year to date fiscal 2021. The increase in net earnings from continued operations of $98.0 million is primarily attributable to the increase in gross profit and a decrease in overall operating costs, partially offset by an increase in net finance costs. Adjusted EBITDA1 from continuing operations for the year to date fiscal 2022 was $37.9 million as compared to a loss of $2.5 million for the year to date fiscal 2021. The increase of $40.4 million is primarily attributable to the increase of $55.8 million in gross profit, partially offset by an increase in operating costs (excluding restructuring costs, depreciation, amortization and impairment of non-financial assets) of $4.4 million and a decrease of $11.0 million in foreign exchange gain. The Company, as part of its restructuring plan, closed the Thyme Maternity and Addition Elle banners during the fiscal year ended January 30, 2021. Net earnings from discontinued operations for the year to date fiscal 2022 was $10.2 million as compared to a net loss from discontinued operations of $72.6 million for the year to date fiscal 2021. As the discontinued banners were no longer in operation during the year to date 2022, the net earnings of $10.2 million was due to an adjustment to the provision for disclaimed leases reflecting the most recent settlement discussions with certain landlords. COVID-19 and Other Key Company Updates The COVID-19 pandemic continues to have a significant impact on the Company's results. As at January 30, 2021, the Company had 240 out of its 415 stores (58%) closed as a consequence of governmental lockdown directives. This partial lockdown of the Company's retail store network continued into the first quarter of 2022. Even though restrictions were relaxed and some stores reopened, in April 2021, a third wave resulting in increased COVID-19 cases required some further governmental lockdowns. As at July 31, 2021 and as of the date of this press announcement, there were no stores temporarily closed as a consequence of governmental lockdown directives. During the second quarter of fiscal 2021, the Company had a phased reopening of its stores and by the end of June 2020, all of the Company's stores were open for business. During the year to date fiscal 2021, all of the Company's stores were closed for 55 consecutive days. During partial or full lockdowns, the Company continued to fulfill e-commerce orders though sales were not sufficient to offset the lost sales due to the closures. In June 2021, the Company implemented its buy online pick up in store ("BOPIS") initiative to enhance its customers' omnichannel experience and reduce freight costs on fulfilling ecommerce orders. Since BOPIS only started in June 2021, the impact on the Company's operating results for the second quarter of fiscal 2022 and year to date fiscal 2022 was minimal in relation to freight costs. During the year to date fiscal 2022, the Company's measures to protect its financial situation continued to include furloughing retail sales associates during temporary store closures and obtaining financial assistance from federal programs, such as the CEWS and the CERS. Such measures and financial assistance mitigated the financial impact of COVID-19 on the Company's business. The extent to which COVID-19 will continue to impact the Company's business, including its supply chain, consumer shopping behavior and consumer demand, including online shopping, will depend on future developments, which are highly uncertain and cannot be predicted at this time. These future developments include the speed of COVID-19 vaccination rollouts in Canada, vaccination rates amongst the Canadian population and other measures taken by various government authorities to contain the virus and its variants spread for potential future waves as well as future customer shopping behavior including online sales. As the Company navigates through the challenges caused by COVID-19, its focus will be to adapt to customers' changing product preferences, closely monitor its cash position and control its spending, while managing its inventory levels in line with the unprecedented change in demand behavior since COVID-19 started. Current financial information may not necessarily be indicative of future operating results. On May 19, 2020, the Company obtained an initial order (the "Order") from the Superior Court of Québec (the "Court") to seek protection from creditors under the Companies' Creditors Arrangement Act (the "CCAA") and Ernst & Young Inc. was appointed as the Monitor. Since its initial filing on May 19, 2020, the Company obtained four extensions of the Order, with the most recent extension obtained until September 28, 2021. The CCAA process allowed the Company to implement an operational and commercial restructuring plan which included the closure of the Thyme Maternity and Addition Elle banners. See section entitled "Discontinued Operations". As well, the Company has re-negotiated more favourable lease terms with its landlords for virtually all of its remaining stores. The Company continues to make progress in the CCAA process with the assistance of the Monitor and expects to make announcements as further material progress is made, including a Plan of Arrangement to be filed and communicated at a later date. In August 2020, the Company had secured interim financing ("DIP Loan") up to a maximum amount of $60.0 million, including facilities available for securing letters of credit of up to $5.0 million, with a Canadian financial institution. On May 25, 2021, the Company obtained the Court's approval to reduce the DIP Loan facility from $60.0 million to $30.0 million. As of July 31, 2021, the Company had not drawn funds from the DIP Loan facility, other than for the issuance of letters of credit totalling $0.6 million. With the uncertainties surrounding the impact of COVID-19 going forward, the Company cannot guarantee that the DIP Loan will not be utilized in the future. These factors and conditions, combined with the unpredictability of the outcome of the matters arising from the CCAA proceedings, indicate that a material uncertainty exists that may cast significant doubt about the Company's ability to continue as a going concern and, therefore, realize its assets and discharge its liabilities in the normal course of business. The unaudited condensed consolidated interim financial statements have been prepared on a going concern basis, which assumes the Company will continue its operations for the foreseeable future and will be able to realize its assets and discharge its liabilities and commitments in the normal course of business. In assessing whether the going concern assumption is appropriate and whether there are material uncertainties that may cast significant doubt about the Company's ability to continue as a going concern, management must take into account all available information about the future, including estimated future cash flows, for a period of at least twelve months following the end of the reporting period. The unaudited condensed consolidated interim financial statements as at July 31, 2021 do not include any adjustments to the carrying amounts and classification of assets, liabilities and reported expenses that may otherwise be required if the going concern basis was not appropriate. Such adjustments could be material. It is not possible to reliably estimate the length and severity of COVID-19 and the impact on the financial results and financial condition of the Company in future periods. The Company will take into consideration the most recent developments and impacts of the pandemic, including updated assessments of future cash flows and any additional impacts resulting from COVID-19 will be reflected in the financial results of the current fiscal year, if applicable. Discontinued Operations As part of its restructuring plan, the Company closed the Thyme Maternity and Addition Elle banners during the year ended January 30, 2021 and, as a result, these results and cash flows have been classified as discontinued operations. IFRS 5, Non-current Assets Held for Sale and Discontinued Operations, requires that the comparative statements of earnings (loss) and comprehensive income (loss) be presented as if the operations were discontinued from the start of the comparative year. As a result, discontinued operations are excluded from the net earnings (loss) from continuing operations and are presented as earnings (loss) from discontinued operations, net of tax, as a separate line item in the consolidated statements of earnings (loss). About Reitmans (Canada) Limited The Company is a leading women's specialty apparel retailer with retail outlets throughout Canada.  As at July 31, 2021, the Company operated 411 stores consisting of 242 Reitmans, 91 Penningtons and 78 RW&CO.  As noted above, all Addition Elle and Thyme Maternity stores have been closed in connection with the restructuring plan. 1Non-GAAP Financial Measures The Company has identified several key operating performance measures and non-GAAP financial measures which management believes are useful in assessing the performance of the Company; however, readers are cautioned that some of these measures may not have standardized meanings under IFRS and, therefore, may not be comparable to similar terms used by other companies. In addition to discussing earnings in accordance with IFRS, this press announcement provides adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") as a non-GAAP financial measure. Adjusted EBITDA is defined as net earnings (loss) before income tax expense/recovery, interest income, interest expense, depreciation, amortization, impairment of non-financial assets and restructuring costs. With the classification of the Addition Elle and Thyme Maternity businesses as discontinued operations, Adjusted EBITDA has also been modified to exclude discontinued operations. The following table reconciles the most comparable GAAP measure, net earnings or loss from continuing operations, to Adjusted EBITDA from continuing operations. Management believes that Adjusted EBITDA is an important indicator of the Company's ability to generate liquidity through operating cash flow to fund working capital needs and fund capital expenditures and uses the metric for this purpose. The exclusion of interest income and expense eliminate the impact on earnings derived from non-operational activities. The exclusion of depreciation, amortization and impairment charges eliminates the non-cash impact, and the exclusion of restructuring costs and discontinued operations presents the results of the on-going business. The intent of Adjusted EBITDA is to provide additional useful information to investors and analysts. The measure does not have any standardized meaning under IFRS. Although depreciation, amortization and impairment charges are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, as such, Adjusted EBITDA does not reflect any cash requirements for these replacements. Adjusted EBITDA should not be considered either as discretionary cash available to invest in the growth of the business or as a measure of cash that will be available to meet the Company's obligations. Other companies may calculate Adjusted EBITDA differently. From time to time, the Company may exclude additional items if it believes doing so would result in a more effective analysis of underlying operating performance. The exclusion of certain items does not imply that they are non-recurring. Adjusted EBITDA should not be used in substitute for measures of performance prepared in accordance with IFRS or as an alternative to net earnings, net cash provided by operating, investing or financing activities or any other financial statement data presented as indicators of financial performance or liquidity, each as presented in accordance with IFRS. Although Adjusted EBITDA is frequently used by securities analysts, lenders and others in their evaluation of companies, it has limitations as an analytical tool, and should not be considered in isolation, or as a substitute for analysis of the Company's results as reported under IFRS. The Company uses a key performance indicator ("KPI"), comparable sales, to assess store performance and sales growth.  The Company engages in an omnichannel approach in connecting with its customers by appealing to their shopping habits through either online or store channels.  This approach allows customers to shop online for home delivery or to pick up in store, purchase in any of our store locations or ship to home from another store when the products are unavailable in a particular store.  Due to customer cross-channel behavior, the Company reports a single comparable sales metric, inclusive of store and e-commerce channels. Comparable sales are defined as sales generated by stores that have been continuously open during both of the periods being compared and include e-commerce sales. The comparable sales metric compares the same calendar days for each period. Although this KPI is expressed as a ratio, it is a non-GAAP financial measure that does not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures used by other companies. Management uses comparable sales in evaluating the performance of stores and online sales and considers it useful in helping to determine what portion of new sales has come from sales growth and what portion can be attributed to the opening of new stores. Comparable sales is a measure widely used amongst retailers and is considered useful information for both investors and analysts. Comparable sales should not be considered in isolation or used in substitute for measures of performance prepared in accordance with IFRS. As highlighted in the section entitled "COVID-19 and Other Key Company Updates", at various times throughout the year to date fiscal 2022, the Company was required to temporary close some of its retail stores as a consequence of governmental lockdown directives. Due to the unprecedented nature of COVID-19 and its significant impact on consumers and our ability to service our customers, management believes that comparable sales are not currently representative of the underlying trends of our business and consequently would not provide a meaningful metric in comparisons of year-over-year sales results. Accordingly, this press announcement does not include a discussion of the Company's comparable sales in respect of the second quarter of and year to date fiscal 2022. Management will continue to monitor and evaluate the effects of COVID-19 and will resume the evaluation of comparable sales when year-over-year results are more representative. The following table reconciles net earnings (loss) from continuing operations to Adjusted EBITDA from continuing operations: For the second quarter of Year to date fiscal 2022 2021 2022.....»»

Category: earningsSource: benzingaSep 23rd, 2021

CloudMD Reports Solid Performance with Third Quarter 2021 Financial Results; Record Revenue of $39.2M and First Quarter with Positive Adjusted EBITDA

Q3 2021 is the first quarter that fully recognizes the financial results from all previously announced and closed acquisitions Record Q3 2021 revenue of $39.2 million; an increase of 150% compared to Q2 2021 and an increase of 1066% compared to Q3 2020 First quarter with positive Adjusted EBITDA of $0.8 million compared to a loss of $0.7 million in Q2 2021 and a loss of $1.3 million in Q3 2020 Increased annualized revenue run rate to over $185 million demonstrating strategic capital allocation and strong organic growth Increased engagement on the Comprehensive Integrated Health Platform; added an additional 300,000 employees and family members, resulting in a total of 560,000 individuals Positive client outcomes with Net Promoter Score of 80, 98% satisfaction rate and 164 new clients added in the quarter Program with Sun Life delivered proven data-driven individual health outcomes including: 89% of those experiencing depression and 91% of those experiencing anxiety noticed ‘major improvements' 82% said they would recommend the service based on their own experience 46% increase in plan members utilizing their mental health benefits for the first time VANCOUVER, British Columbia, Nov. 29, 2021 (GLOBE NEWSWIRE) -- CloudMD Software & Services Inc. (TSXV:DOC, OTCQB:DOCRF, Frankfurt: 6PH)) (the "Company" or "CloudMD"), a healthcare technology company revolutionizing the delivery of care, announced its financial results for the third quarter ended September 30, 2021. All financial information is presented in Canadian dollars unless otherwise indicated. "This was a milestone quarter for CloudMD as it's the first quarter we recognized full revenue contributions from all the recently closed acquisitions and clearly demonstrated that our whole-person, patient-centric approach to healthcare is working. We've onboarded 560,000 individuals onto our Comprehensive Integrated Health Platform and are providing valuable data-driven outcomes, which is proven by our successful program with Sun Life where 89% of those experiencing depression and 91% of those experiencing anxiety noticed major improvements. We've also achieved positive client outcomes across engagement, attachment rate, and net promoter scores," said Dr. Essam Hamza, CEO of CloudMD. "I am extremely proud of the Company's progress and the team's ability to execute on our growth strategy across all divisions, which is evident by new clients wins, rapid growth and improved profitability. Our unique, proprietary healthcare offering is an industry first, and I'm confident that we will be able to continue our North American and global expansion." Third Quarter 2021 Financial Highlights Q3 2021 revenue was $39.2 million, compared to $15.7 million in Q2 2021 and $3.4 million in Q3 2020. The increase is primarily attributable to acquisition growth with 4 acquisitions completed in the preceding quarter, and 14 acquisitions completed in the last 12 months. Q3 2021 gross margin1 was 34.0%, compared to 35.5% in Q2 2021 and 37.5% in Q3 2020. The decrease is due to revenue mix where the Company's patient support programs and online eyewear platform, currently lower-margin businesses, represented 32% of revenues for the current quarter. The Company expects its gross margin to increase due to ongoing efforts to integrate its acquisitions and increase its operational efficiency. Net comprehensive loss attributable to equity holders of the Company in Q3 2021 was $4.2 million or $0.02 per share, compared to $6.2 million or $0.03 per share in Q2 2021 and $2.7 million or $0.02 per share in Q3 2020. Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA1") was $0.8 million in Q3 2021, compared to a loss of $0.7 million in Q2 2021 and a loss of $1.3 million in Q3 2020. Cash and cash equivalents were $53.7 million as at September 30, 2021, compared to $60.9 million at June 30, 2021 and $59.7 million at December 31, 2020. The decrease for the period was primarily attributable to payments related to the acquisitions completed near the end of June 2021, which will not reoccur in the future. Third Quarter & Subsequent Corporate Highlights On September 14, 2021, the Company announced a partnership with 19 new post-secondary institutions across Canada to provide its Aspiria Student Assistance Program and multi-layered mental health resources to over 167,000 additional students. On September 28, 2021, the Company announced the appointment of KPMG LLP as the Company's independent auditors to hold office until the end of the next annual general meeting of shareholders. On October 5, 2021, the Company announced the appointment of Angel Paravicini as Senior Vice President of Business Development and Customer Success to drive expansion in the United States and globally. On October 27, 2021, the Company announced that through one of its subsidiaries, it has received U.S. Patent Approval for its Real Time Intervention Platform ("RTIP") which is the technology backbone for CloudMD's comprehensive healthcare platform that addresses all points of a patients care from one, connected platform. On November 9, 2021, the Company announced the appointment of Duncan Hannay and Karen Adams to the Board of Directors of CloudMD. On November 15, 2021, the Company announced it had entered into a definitive agreement (the "Arrangement Agreement") with MindBeacon Holdings Inc. ("MindBeacon") pursuant to which CloudMD agreed to acquire all of MindBeacon's issued and outstanding common shares for cash and shares of the Company. Under the terms of the Arrangement Agreement, each common share of MindBeacon will be exchanged for $1.22 cash and 2.285 common shares of CloudMD. Closing of the transaction is subject to a number of customary closing conditions, including approval by at least two-thirds of the votes cast at a special meeting of MindBeacon's shareholders, as well as court and regulatory approval. The MindBeacon shareholder meeting is expected to be held on or about January 10, 2022 and, subject to the satisfaction or waiver of the other closing conditions, closing is expected to occur shortly thereafter, on or about January 14, 2022. On November 29, 2021, the Company announced it has partnered with Sun Life to expand the seven month pilot program and start rolling out its Mental Health Coach as part of Sun Life's Group Benefits offering. Findings from the pilot include (1) 89% of those experiencing depression and 91% of those experiencing anxiety noticed ‘major improvements'; (2) 82% said they would recommend the service based on their own experience; and, (3) 46% increase in plan members utilizing their mental health benefits for the first time. Outlook CloudMD is creating innovation in the delivery of healthcare services, by leveraging technology to improve access to care leading to better health outcomes. Through its team-based, patient-centric approach, CloudMD provides one, connected platform for patients, healthcare practitioners, and enterprise clients to address whole-person, coordinated care. The Company has a multi-pronged growth strategy which focuses on organic growth, accretive mergers and acquisitions and leveraging assets across all divisions. The Company's long term growth will be largely driven by: (1) continuing to integrate all its proprietary health technology solutions into its ecosystem, including the recently announced proposed acquisition of MindBeacon; (2) realizing cost savings and cross-selling opportunities to new and existing customers across CloudMD; (3) winning new customers with its unique healthcare offering and providing meaningful data driven outcomes; and (4) continuing to execute on its defined expansion strategy across North America and Globally. CloudMD has proven out its integration strategy and by leveraging its proprietary technology, has successfully integrated all its recent acquisitions into one connected platform. In respect of the recently announced proposed acquisition of MindBeacon, CloudMD has already identified cost savings of approximately $2 million and cross-sell synergies and has started to plan the integration of MindBeacon's synergistic healthcare solutions into its mental health services offerings. In addition, the Company believes there are an additional $2 million in potential synergies available over time through the integration of MindBeacon and its other acquisitions. CloudMD's proprietary Comprehensive Integrated Health Platform continues to see impressive adoption rates within the Enterprise Health Solutions division, and the Company has onboarded 560,000 employees and family members on the platform who are receiving individualized care. CloudMD has achieved positive client outcomes including a Net Promoter Score of 80, 98% satisfaction rate and 164 new clients added in the third quarter. CloudMD continues to win new clients and customers including Sun Life and other large organizations in retail, transportation, and financial sectors with its industry-leading approach that delivers important outcomes that measure the patient success and engagement of its connected platform. The technology that underpins the platform is scalable and the Company will continue looking at opportunities to expand its unique offering to clients across North America and globally. CloudMD has built an experienced sales team, and with the recent addition of Angel Paravicini, expects to drive sales and business development to open new distribution channels and attract new clients in the United States. Upon close of the proposed acquisition of MindBeacon, CloudMD will have a strong balance sheet with over $60 million in cash and cash equivalents. The Company will continue to deploy capital towards a robust pipeline of accretive, synergistic acquisitions, focused on products, capabilities, clinical specialties, and technologies that are highly scalable and rapidly growing. CloudMD will continue to focus on delivering meaningful shareholder value by executing on its growth strategy through the continued integration of its comprehensive healthcare offering, winning new business and clients with its unique, Comprehensive Integrated Health Platform, expansion of its scalable product across new geographies including the United States, and strategic capital allocation to drive its rapid growth. Selected Financial Information All results were prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board. (In thousands of Canadian dollars, except per share amounts)   Three months ended     Nine months ended     September 30,     September 30,     2021     2020   (%)   2021     2020   (%) Revenue $ 39,162   $ 3,359   1066%   $ 63,596   $ 9,205   591%   Cost of sales   (25,866)     (2,100)   1132%     (41,152)     (5,792)   610%   Gross profit (1)   13,296     1,259   956%     22,444     3,413   558%   Gross margin   34.0%     37.5%       35.3%  .....»»

Category: earningsSource: benzingaNov 29th, 2021

10 transformers wrangling supply chain chaos, from former driver collectives to mastering drone deliveries

We've highlighted 10 people up and down the supply chain who are charting new paths through the tumult. For the Delivery section of this year's edition of Insider's 100 People Transforming Business, we've highlighted 10 people up and down the supply chain who are charting new paths through the tumult.Halfpoint Images/Getty Images The effects of a congested global supply chain will make themselves felt through the end of 2022. American consumers are ordering more goods than ever, and expect affordable and timely delivery. Here are 10 people changing their companies and industries by charting new paths through the tumult.  Visit Insider's Transforming Business homepage for more stories If there were any doubt that supply chain chaos has gone mainstream, an October episode of NPR's news quiz show, "Wait Wait ...  Don't Tell Me" put the question to rest when a contestant named the global logistics crisis as the reason holiday shoppers should be ready for disappointment this year. "It is so complex and wide-ranging you can blame everything on it," host Peter Sagal said. "Christmas gifts unavailable? Oh, supply chain. Father emotionally unavailable? Supply chain. Oh, I'm sorry. What was the date of your one-man show again? Oh, I can't make it. Thank you, supply chain."The mess is here to stay: Experts predict that the effects of port congestion, delayed trucks, railroad snafus, and more will make themselves felt through the end of next year. Meanwhile, consumer demand for everything has hit a crazy level, up more than 10% over 2020, which itself was up 8% over 2019. The crisis has made some people's jobs impossible — and allowed others to stand out. For the Delivery section of this year's edition of Insider's 100 People Transforming Business, we've highlighted 10 of those transformers, people up and down the supply chain who have taken the opportunity to change their companies, industries, and lives for the better by charting new paths through the tumult. A smarter role for big techWhile the likes of Amazon, Alphabet, and UPS work on drones that can drop packages on our front steps, FlyTrex CEO Yariv Bash is focusing on a narrower sector of the could-be flying delivery market. Restaurants love the idea, he told Insider, since today's delivery platforms eat up to 35% of an order in fees. Matthew Johnson-Roberson's Refraction AI is going by ground, making local food deliveries with a three-wheeled autonomous robot that sticks to the bike lane, where driving is a bit simpler than it is on the open road. "We wanted to make sure that what we were going to do was not going to be the same as what everyone else was going to do," Johnson-Roberson said.Refraction's not the only self-driving company focused on deliveries. Under Cosimo Leipold's direction as head of partnerships, Nuro — which developed a toaster-looking, cargo-only vehicle to make local deliveries — has struck deals with grocery chain Kroger, Walmart, Domino's, and FedEx. For long-haul work, David Liu's Trucks is taking a Tesla-like approach to getting his tech on the market in the near future, offering a limited version of autonomy in his 18-wheelers to start, with more capability to follow and landing a big deal with Amazon. The human touchFor all the promise of robots, moving goods along the supply chain remains a deeply human process. That's why Lidia Yang, cofounder and CEO of NEXT Trucking, is working with port terminal operators to connect drivers with loads more efficiently. "If we can just keep drivers moving, you can largely increase your capacity for the port," she said.At UPS, CEO Carol Tomé has used the pandemic-induced chaos as extra motivation to focus on profitability over volume and weed out ventures that didn't adhere to her "better, not bigger" philosophy. "Low-value projects often take as much time, effort, and resources as high-value initiatives. So, they need to be stopped. Quickly," she said.Indeed, getting people to do more is crucial. In 2019, when Sarah Mastrorocco became Instacart's head of pickup, the company was powering pickup from 1,000 stores in North America. A year and a half into the pandemic, it covers 4,500 stores in 45 states. Under CEO Kelly Caruso, Shipt has grown its footprint throughout the pandemic, going beyond food to add customers like CVS, GNC, and Bed Bath & Beyond.Caruso told Insider that protecting people is as important to her as growing her business. "You have to invest in growth and people," she said, even if those goals can contradict. That same concern for the people in the supply chain is what compelled Penelope Register-Shaw to join the Frontdoor Collective, a last-mile delivery company formed of more than 100 small fleets that deliver for Amazon and other major players. She worried that drivers were suffering from worsening pay, working conditions, and safety.  "If you enter this job, you should have a reasonable expectation that you can make a career out of it, not that you will last six weeks or six months," she said. She said she's in it for the long haul, too. "I will stay with this as long as it takes to be successful."Read the original article on Business Insider.....»»

Category: topSource: businessinsiderNov 17th, 2021

Creatd, Inc. Reports Record Financial Results for Third Quarter 2021

NEW YORK, Nov. 16, 2021 /PRNewswire/ -- Creatd, Inc. (Nasdaq CM: CRTD) ("Creatd" or the "Company"), a creator-first holding company and the parent company of Vocal, yesterday reported financial results for its three- and nine-month periods ended September 30, 2021. With these record results, which saw third quarter 2021 revenues similar to the amount of revenue for the entirety of fiscal year 2020, the Company reaffirms its fiscal year 2021 revenue guidance of between $4.5 and $4.7 million. Looking ahead, the Company initiates revenue guidance of $10 to $15 million for full year 2022.  Creatd founder and co-CEO Jeremy Frommer commented, "As a founder and entrepreneur, it is gratifying to not only achieve proof of concept and commercialization, but to now witness revenue growth acceleration and an expansion of Creatd's core business, first launched five years ago. Having completed our Nasdaq uplisting only a little over one year ago—a feat achieved by only a handful of tens of thousands of OTC-quoted companies each year—the achievements our company has made in a relatively short period of time are only more pronounced. Namely, we continue to experience double digit quarterly growth, as we have for five out of our last six quarters, we have completed our second agency acquisition, and we have expanded our footprint with new offices in New York and Miami." "I am grateful for this initial hard-won success and humbled to have attracted a stellar team of hardworking professionals and, most importantly, to share leadership with our new co-CEO Laurie Weisberg, whose ability to accelerate growth for technology companies is well-documented." Laurie Weisberg, Creatd's co-CEO, commented, "Our business development efforts are yielding visibility for a strong and growing revenue pipeline, made possible by the emphasis we have placed this quarter on recruiting incredible industry talent. These meticulously-chosen professionals and support teams are crucial to executing on our outlined growth strategies in the scope of product development, brand partnerships, and M&A activity. We look forward to working toward a strong end to the year." Third Quarter and Nine Months 2021 Financial Highlights:  Revenue: In line with guidance, net revenues for the third quarter were $1.18 million, a nearly three-fold increase as compared to third quarter 2020 revenues of $425,000, and a 22% increase over second quarter 2021 net revenues of $971,000. Gross revenues for third quarter 2021 were $1.21 million, a 20% increase compared to gross revenues for second quarter 2021. The increase in third quarter revenues is largely attributable to continued growth in Creatd Labs' creator subscriptions, with Vocal creators finding increasing value from the Vocal platform. Additionally, Creatd Partners, the Company's agency business segment, saw growth this quarter of approximately 14% due in part to the successful acquisition and subsequent integration of the WHE Agency. Going forward, the Company will provide total bookings and other non-GAAP financial data, for WHE as well as its other existing and future business lines, as an indicator of the Company's revenue growth over time. For the nine months ended September 30, 2021, net revenues totaled approximately $2.9 million, an increase of 178% over the prior year's nine-month period. For the remainder of 2021 and going forward, Creatd Labs is expected to maintain its growth momentum. Creatd Partners anticipates accelerated growth across all of its service lines, including the ramp-up of its talent representation and management function. Finally, given its initial sales data and strong opportunity pipeline, the newly formed Creatd Ventures and Creatd Studios are expected to begin to impact the Company's revenues materially in the first half of 2022. Operating Expenses: Marketing costs dropped by over 50% between the second and third quarter, from $4.2 million in the second quarter 2021 to $1.8 million in the third quarter. Outside of variable marketing expenses and one-time costs associated with the Company's financings and other transactions, the Company's operating expenses this quarter were $3.5 million, in line with previous quarters. Additionally, the Company reported approximately $2.2 million in non-cash charges related to the vesting and issuance of stock options, as well as non-recurring expenses related to financings. In total, operating expenses reported for the third quarter 2021 were $6.7 million.The Company continues to deliver on its stated goal to lessen its dependence on third party marketing vendors. Going forward, the Company anticipates general operating expenses to remain relatively consistent with those of the third quarter. During the three-month period ended September 30, 2021, the Company incurred a loss from operations of $(6.9) million, compared to a loss from operations of $(7.0) million during the same period last year and a loss of $(8.4) million during the second quarter 2021, a 21% reduction in losses.Given the Company's current cash position—consisting of nearly $5.2 million in cash, plus a $500,000 prepaid credit with its development partner, Thinkmill—the Company currently has close to $6 million in operating capital. Additionally, the Company can draw down on a vendor balance of up to $3 million with its third-party social media marketing partners. Given the Company's current revenue guidance and diminishing dependence on these marketing partners, the Company expects to be cash flow breakeven by the end of third quarter 2022. Additionally, the Company anticipates achieving close to breakeven on pre-marketing operational expenses by the end of the second quarter 2022. Comprehensive Loss: Comprehensive loss for the third quarter 2021 totaled $(9.7) million, or $(0.71) per basic and diluted share, which included several non-recurring, non-cash charges totaling approximately $3.0 million related primarily to the elimination of debt, the majority of which was converted to equity during the quarter, and a change in derivative liability expense of approximately $833,000. This compares to a comprehensive loss of $(16.2) million or $(3.81) per basic and diluted share for third quarter 2020, an 81% improvement per basic and diluted share. Total Assets: On September 30, 2021, total assets were $8.3 million, away from the OG Collection, the Company's wholly owned image library and related transmedia IP and NFT portfolio, currently carried at zero value on the Company's balance sheet. The company has a plan for monetizing the OG Collection more significantly over fiscal year 2022, including a potential spin out of the media library and its licensing rights. Cash, inventory, accounts receivable, and prepaid expenses totaled $2.6 million, a decrease of $747,000, or 23%, from prior second quarter. Total Liabilities: The Company's total liabilities decreased by approximately $932,000 during the third quarter to $6.1 million as a substantial portion of its debt converted into equity at $5.00 per share. As of the third quarter 2021, the Company's debt totaled approximately $3 million, comprised of: $154,000 in convertible debt, approximately $2.2 million in notes payable that included $232,000 of a Government Payroll Protection Program ("PPP") loan that carries 1% annual interest (which the Company has been paying down steadily from its original principal amount of $282,000); $660,000 related to the acquisition of Seller's Choice, a liability that is currently in litigation; and $1.1 million in related party debt, of which $190,000 has been repaid subsequent to third quarter and the remainder has been settled for $350,000, also subsequent to quarter-end.  Subsequent Liability Reductions: Subsequent to third quarter, $640,000 in convertible notes were converted into equity at $5.00 per share in October 2021. Shareholders' Equity: As of September 30, 2021, shareholders' equity totaled approximately $2.1 million, an increase of $2.6 million compared to June 30, 2021. Subsequent Financial Developments: Registered Direct Offering of Common Shares: On October 27, 2021, Creatd completed a Registered Direct Offering of 850,000 shares of its common stock at $4.50 per share–a 30% improvement compared to the pricing of its previous financing at $3.45–generating net proceeds of $3.4 million. This is the Company's second offering pursuant to a "shelf" registration statement on Form S-3 (File No. 333-250982) that went effective on April 23, 2021, granting the Company the ability to raise up to $50 million in aggregate proceeds over time. To date, the Company has raised approximately $6.4 million from the sale of 1.6 million shares from this shelf registration. Capitalization: As of September 30, 2021, Creatd had approximately 14 million shares of common stock outstanding, an increase of approximately 2.2 million shares from the prior second quarter. This increase is due to the exercise of 955,000 warrants at $4.50 per share; the conversion of notes into 780,000 shares; preferred stock conversions into 102,000 shares of common stock; the issuance of 213,000 shares attributed to the closing of the WHE acquisition; the partial exercise of the bankers' overallotment from the June 21, 2021 financing of 87,500 shares; quarterly Board compensation shares of 17,000; and 5,800 shares allocated to consultant services in lieu of cash.Creatd's fully diluted shares total approximately 23 million, including 2.3 million stock options, 148,000 shares underlying Series E Preferred stock, and 6.6 million warrants, approximately 5 million of which have an exercise price of $4.50. Frommer continued, "Creatd is entering an accelerated revenue phase with a healthy balance sheet. With our current revenue projections, we will approach cash flow breakeven in the third quarter of 2022." Third Quarter 2021 Operational Highlights  Creatd 'Four Pillar' Organizational Structure: During the third quarter of 2021, Creatd unveiled the four pillars of the Company, each with a dedicated revenue stream. While each pillar corresponds to a unique revenue stream and associated segmented expenses, at a management level Creatd employs a shared services model, with each business function, including technology development, marketing, and legal, operating across all of its pillars. Creatd Labs houses the Company's proprietary technology and development initiatives, including its flagship platform, Vocal, as well as oversees the Company's content creation framework and the management of its digital communities. Creatd Labs develops and maintains the ecommerce platforms for its partner pillar Creatd Ventures, including the integration of acquired SaaS technology. The pillar additionally oversees the development of NFT-related technology for its partner pillar, Creatd Studios. Creatd Labs derives revenues primarily from Vocal creator subscriptions and platform processing fees. Creatd Partners fosters relationships between brands and creators through its suite of agency services, including content marketing (Vocal for Brands), performance marketing or managed services (Seller's Choice), and influencer marketing (WHE Agency). Revenue is generated through service fees and agency commissions which have consistently grown in each of the last four quarters. Creatd Partners' 2021 revenues are expected to account for approximately half of the Company's total revenues. All three agencies leverage brand relationships, influencer opportunities, and technology development from the resources of Creatd Labs and the direct-to-consumer (DTC) companies of Creatd Ventures. In addition, the Creatd Partners pillar leverages the distribution of intellectual property and content developed by partner pillar, Creatd Studios. Creatd Ventures builds, develops, and scales e-commerce brands. This segment generates revenues through product sales of its two majority-owned direct-to-consumer brands, Camp and Dune Glow Remedy. The Company's acquisition strategy for this pillar emphasizes direct-to-consumer brands that are founder-owned, high-growth, low-overhead, and closely aligned with the Company's core creator-first principles. Creatd Ventures is expected to begin contributing materially to the Company's revenues in the fourth quarter of 2021. Creatd Studios houses transmedia production and adaptation initiatives, including those which leverage the OG Collection and its other IP assets. Creatd Studios will generate revenues through profit-share agreements, licensing fees, book publishing deals, film, TV, podcasts, and NFT marketplace ventures. All of the above opportunities rely upon the resources of the three previous pillars and the creative communities they serve. Creatd Studios is expected to begin contributing materially to the Company's revenues in the second quarter of 2022. Leadership Announcements: Laurie Weisberg, previously Creatd's COO, was appointed the Company's co-CEO. In this role, Ms. Weisberg primarily oversees the scope of operations, cash flow, human resources, marketing, and brand partnerships while Mr. Frommer focuses on spearheading corporate strategy, technology development, M&A initiatives, and broader financing activities. Justin Maury, co-founder and President of Creatd, was appointed COO. Mr. Maury has led Creatd's product development since inception, and is credited with developing the vision, design, and architecture for Creatd's flagship product, Vocal. As COO, Mr. Maury continues to manage the oversight of technology development and supervise its continued evolution. Senior Management Hires: Tom Punch, co-founder of Creatd Ventures' Dune Glow Remedy, joined the Company as the CEO of Creatd Ventures, overseeing the operations and expansion of Dune and Camp, as well as that of each brand within Creatd Ventures' growing portfolio. Tracy Willis, co-founder of the WHE Agency, joined Creatd as CEO of Creatd Partners' WHE Agency. In this role, Ms. Willis continues to oversee WHE's strategic growth, expanding its influencer roster, and directing all talent and brand opportunities. Erica Wagner, celebrated author and literary editor, joins Creatd as Lead Editorial Innovator, focusing in particular on Creatd Studios projects. Ms. Wagner was literary editor of The Times for 17 years and is now a contributing writer for the New Statesman and consulting literary editor for Harper's Bazaar. At Creatd, Ms. Wagner's responsibilities focus on leveraging Creatd's extensive intellectual property for future transmedia publishing projects, as well as systematizing Creatd Studios' production capabilities by sourcing and identifying stories from across Creatd that are well suited for adaptations in the entertainment and publishing industries. Ms. Wagner is expected to join Creatd full-time in early 2022. Segment specialists Rich Vinchesi of Olympic Advisers and Andrew Herwitz, President of the Film Sales Company, round out additional key roles, acting as advisors for the Company's M&A and IP development initiatives, respectively. Creatd Labs Platform Development: Vocal released five substantial features and tools as part of an 18-month development roadmap of features specifically designed to foster a more personalized experience between creators and their audiences. Most importantly, Vocal's feature additions work to continue to increase the value proposition for the creator community and economy. Features added thus far include: Subscribe, which provides creators the means to build and engage an individualized community around their creations. Stories You Liked, giving creators a new way to view a chronological feed of the stories they have liked, all in one place. Quick Edit, one of Vocal's most highly requested features, provides creators with the ability to edit their stories after publication. Report button, designed to further promote Vocal's user safety via community moderation. Creator Bonuses, enabling the Vocal team to add money directly to a creator's existing Wallet balance, thus enhancing on-platform earning power. Vocal+ Fiction Awards Challenge: Creatd Studios, ...Full story available on Benzinga.com.....»»

Category: earningsSource: benzingaNov 16th, 2021

Dollar General (DG) Partners With DoorDash to Boost Deliveries

Dollar General (DG) partners with DoorDash to offer on-demand delivery of a variety of household essentials. Technological advancements have radically transformed consumers’ shopping practices. With prudent omni-channel offerings and swift delivery systems, retailers are offerings various options that suit consumers’ lifestyle and convenience. Renowned discount retailer — Dollar General Corporation DG — has been undertaking prudent initiatives to boost its delivery game. In the latest developments, the company announced a partnership with DoorDash, Inc. DASH — a leading last-mile logistics platform — to offer on-demand delivery of household essentials. Let’s delve deeper.Strong Delivery Services are Key to GrowthConsumers’ preference for online deliveries have increased, especially amid the pandemic. Retailers are making most of this trend by broadening their online presence and boosting collaborations with logistics service providers. Dollar General has long been striving to make shopping hassle free for consumers. The company’s collaboration with DoorDash reflects on this effort.DoorDash has teamed up with many retail biggies to offer prudent delivery services and make their products more accessible. The company’s swift and flexible logistics operating model enables offering consumers with on-demand access to e-commerce. Apart from these, the company provides expertise on customer acquisition, delivery, insights and analytics, merchandising, payment processing as well as customer support.Dollar General and DoorDash initially ran a pilot program in summer 2021, with approximately 600 stores in rural and metropolitan communities. On-demand delivery from DoorDash is currently available from more than 9,000 Dollar General stores, with plans to expand to more than 10,000 locations by December 2021.The partnership is likely to enable Dollar General to provide convenient and contactless delivery options. With DoorDash’s prudent delivery platform, Dollar General will be able to offer on-demand delivery for a range of essential household items, including food, snacks, cleaning supplies and more. Consumers will be able to browse and order products for same-day delivery through DoorDash’s marketplace app or website with no time slot or minimum order size required. The delivery is made within an hour, on average. The products will be provided at everyday low prices, an aspect for which Dollar General is renowned. The partnership is likely to boost same-day delivery in remote areas as well.  To commemorate the partnership, Dollar General is providing attractive discounts that will last till Nov 24, 2021.  Customers can get a 30% off on their first Dollar General order, where the subtotal is $20 or greater, with code DOLLAR (up to a total of $20 off).Speaking of delivery-related efforts, Dollar General is on track to expand its DG Pickup initiative. Management is also progressing well with the DG Fresh initiative — designed to enable self-distribution of fresh and frozen products. The company completed the initial rollout of DG Fresh across the entire chain and are now delivering to more than 17,500 stores from 12 facilities. Additionally, the company is expanding its non-consumables delivery across stores.The company’s robust efforts to strengthen delivery and pickup services along with sturdy store and online offerings are likely to keep supporting its performance. Such efforts are likely to boost investors’ confidence in the stock, which has otherwise been battered by moderating consumption rates as well as rising transportation costs stemming from port delays.This Zacks Rank #4 (Hold) stock has declined 6.4% in the past three months compared with the industry’s rise of 2.1%.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Image Source: Zacks Investment ResearchOther Retailers Ramping up Delivery GameFrom startups to giants, several companies are making radical moves in delivery systems. Well-known supermarket chain — The Kroger Co.’s KR — collaborated with Instacart to offer the ‘Kroger Delivery Now’ service, which provides customers with food and household staples in 30 minutes. The company, in partnership with Instacart, is also offering two-hour grocery delivery.Kroger is focused on no-contact delivery option, low-contact pickup service and ship-to-home orders. Such efforts are driving the company’s e-commerce sales. Shares of this Zacks Rank #2 (Buy) company have increased 14.8% in the past six months compared with the industry’s rise of 7.8%. KR has a long-term earnings growth rate of 10.4%.Supermarket behemoth Walmart Inc. WMT is acclaimed for its notable strides to ramp up deliveries. The company holds alliance with DoorDash and Instacart. Its Express Delivery solutions helps fulfilling orders in less than two hours. Other prudent investments made by the company to bolster its delivery arm include HomeValet, the introduction of Carrier Pickup by FedEx and the launch of Walmart+ membership program among others.Walmart is also venturing into self-driving cars to expand last-mile delivery ecosystem. It has been exploring opportunities in drone delivery and invested in DroneUp. Shares of this Zacks Rank #3 (Hold) company have increased 7.4% in the past six months compared with the industry’s rise of 7.8%. WMT has a long-term earnings growth rate of 5.5%. Tech IPOs With Massive Profit Potential In the past few years, many popular platforms and like Uber and Airbnb finally made their way to the public markets. But the biggest paydays came from lesser-known names. For example, electric carmaker X Peng shot up +299.4% in just 2 months. Think of it this way… If you had put $5,000 into XPEV at its IPO in September 2020, you could have cashed out with $19,970 in November. With record amounts of cash flooding into IPOs and a record-setting stock market, this year’s lineup could be even more lucrative.See Zacks Hottest Tech IPOs Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Walmart Inc. (WMT): Free Stock Analysis Report Dollar General Corporation (DG): Free Stock Analysis Report The Kroger Co. (KR): Free Stock Analysis Report DoorDash, Inc. (DASH): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksNov 12th, 2021

Rivian"s shares jump more than 10% after soaring on the EV startup"s stock market debut

Amazon-backed EV startup Rivian had a dream IPO on Wednesday, and the stock isn't done yet. Rivian soared on its debut on the Nasdaq on Wednesday. Michael M. Santiago/Getty Images Rivian stock was more than 10% higher Thursday, after shares soared the previous day during its IPO. The Amazon-backed EV startup finished Wednesday at $100.73 a share, for a market value of $85.9 billion. Investors are hoping Rivian will be the next Tesla and can thrive as countries focus on climate change. Amazon-backed Rivian's shares rose more than 10% Thursday, the day after the electric-vehicle startup's stock soared in a blockbuster IPO and reached a valuation of $86 billion.Rivian's stock was up 13.6% at $114.49 per share at last check. It finished the day at $100.73 on Wednesday, having started trading at $78. Its shares trade on the Nasdaq with the ticker symbol RIVN.The EV company ended Wednesday with a market capitalization of $85.9 billion on a non-diluted basis. Only in January, it had been valued at $27.6 billion after a private funding round, according to Bloomberg.Rivian is an EV startup founded in 2009 that focuses on trucks. It made a loss of $994 million in the first six months of the year as it invested heavily in increasing production, and is yet to see any meaningful revenue.But investors have flocked to the company despite its big losses, as they bet that the future is bright for electric vehicles as governments focus on climate change.Rivian's IPO sold 153 million shares and raised $11.9 billion for the company. It was the biggest trading debut since Facebook went public in 2012, and one of the 10 biggest on US exchanges ever.The stock surged as it hit the market on Wednesday, reaching an intraday high of $119.46 and valuing the company at more than $100 billion on a fully diluted basis.Read more: Morgan Stanley says these 9 stocks are its top picks from a portfolio of market-beating ideas that's crushed the S&P 500 for 3 yearsRivian's sky-high valuation was no doubt influenced by the success of Tesla, which had $13.8 billion of revenue in the third quarter and is now worth more than $1 trillion.The valuation also reflects the exciting outlook for the EV industry, said Ben Laidler, global markets strategist at trading platform eToro."Industry volumes are seen rising at least 12 times by decade-end," he said. "Tesla has shown that record 30% profit margins are possible. Rivian has the advantage of a broader target market, big-name partners, and a 'democratized' offering."Rivian said before the IPO that it intended to sell 0.5% of shares directly to retail investors via SoFi's online brokerage platform, giving them the same access to the stock that institutional investors on Wall Street have.Among Rivian's backers is Amazon, which owned 22.4% of the class A shares before the IPO. Ford owned 14.4%.Online shopping giant Amazon has ordered 100,000 trucks for delivery by 2025. Rivian overall has 55,400 preorders for its R1T truck and R1S SUV, which it expects to fulfil by 2023.Read the original article on Business Insider.....»»

Category: worldSource: nytNov 11th, 2021

Rivian jumps another 9% in premarket after $86 billion EV startup soars on stock market debut

Amazon-backed EV startup Rivian had a dream IPO on Wednesday, and the stock isn't done yet. Rivian soared on its debut on the Nasdaq on Wednesday. Michael M. Santiago/Getty Images Rivian stock rose as much as 9% in premarket Thursday after soaring the previous day during its IPO. The Amazon-backed EV startup finished Wednesday at $100.73 a share, giving it a market value of $85.9 billion. Investors are hoping Rivian will be the next Tesla and can thrive as countries focus on climate change. Amazon-backed electric-vehicle startup Rivian rose as much as 9% in premarket trading Thursday, the day after the company soared in a blockbuster IPO and reached a valuation of $86 billion.Rivian's stock was last up 7.31% in premarket trading at $108.20 per share. It finished the day at $100.73 on Wednesday, having started trading at $78. Its shares trade on the Nasdaq with the ticker symbol RIVN.The EV company ended Wednesday with a market capitalization of $85.9 billion on a non-diluted basis. Only in January, it had been valued at $27.6 billion after a private funding round, according to Bloomberg.Rivian is an EV startup founded in 2009 that focuses on trucks. It made a loss of $994 million in the first six months of the year as it invested heavily in increasing production, and is yet to see any meaningful revenue.But investors have flocked to the company despite its big losses, as they bet that the future is bright for electric vehicles as governments focus on climate change.Rivian's IPO sold 153 million shares and raised $11.9 billion for the company. It was the biggest trading debut since Facebook went public in 2012, and one of the 10 biggest on US exchanges ever.The stock surged as it hit the market on Wednesday, reaching an intraday high of $119.46 and valuing the company at more than $100 billion on a fully diluted basis.Read more: Morgan Stanley says these 9 stocks are its top picks from a portfolio of market-beating ideas that's crushed the S&P 500 for 3 yearsRivian's sky-high valuation was no doubt influenced by the success of Tesla, which had $13.8 billion of revenue in the third quarter and is now worth more than $1 trillion.The valuation also reflects the exciting outlook for the EV industry, said Ben Laidler, global markets strategist at trading platform eToro."Industry volumes are seen rising at least 12 times by decade-end," he said. "Tesla has shown that record 30% profit margins are possible. Rivian has the advantage of a broader target market, big-name partners, and a 'democratized' offering."Rivian said before the IPO that it intended to sell 0.5% of shares directly to retail investors via SoFi's online brokerage platform, giving them the same access to the stock that institutional investors on Wall Street have.Among Rivian's backers is Amazon, which owned 22.4% of the class A shares before the IPO. Ford owned 14.4%.Online shopping giant Amazon has ordered 100,000 trucks for delivery by 2025. Rivian overall has 55,400 preorders for its R1T truck and R1S SUV, which it expects to fulfil by 2023.Read the original article on Business Insider.....»»

Category: topSource: businessinsiderNov 11th, 2021

LFL, Canada"s Largest Home Furnishings Retailer, Releases Record Financial Results for the Third Quarter ended September 30, 2021

TORONTO, Nov. 10, 2021 /CNW/ - Leon's Furniture Limited ("LFL" or the "Company") (TSX:LNF), today announced record financial results for the third quarter of 2021. Financial Highlights – Q3-2021 Total system wide sales(1) increased 8.2% to a record $825.5 million in Q3-2021 compared to $762.8 million in Q3-2020. Achieved record high revenue of $683.2 million in Q3-2021 compared to $630.8 million in Q3-2020, an increase of 8.3%. Same-store sales(1) increased 9.7% in Q3-2021 compared to Q3-2020. Ecommerce sales grew 48% as compared to the prior year quarter, which is on top of the 235% growth in eCommerce sales that occurred in the prior year's quarter as compared to the third quarter of 2019. Achieved record net income results in a quarter of $63.8 million, an increase of 30% in comparison to Q3-2020. Adjusted EBITDA(1) of $113.5 million in Q3-2021 compared to $96.0 million in Q3-2020, an increase of 18.2%. Adjusted diluted earnings per share(1) grew by 26.2% to $0.77 in Q3-2021 from $0.61 in Q3-2020. Financial Highlights – nine months ended September 30, 2021 On a year-to-date basis as compared to prior year: Revenue increased to $1.8 billion from $1.5 billion, an increase of $297.9 million or 19.3%. Same store sales(1) increased by 19.3% Adjusted EBITDA(1) increased by 43.0%(2) to $295.4 million compared to September 2020. Net income increased by 73.9%(2) to $150.7 million. Adjusted diluted earnings per share(1) grew by 76.7% to $1.87 from $1.06(2) in year to date September 2020. On a trailing twelve month basis, adjusted diluted earnings per share(1) is at $2.58 as compared to $1.54(2) in the prior year's trailing twelve month period, an increase of over 67.5% or $1.04 per share. Year to date the Company has returned $193.0 million to shareholders in the form of dividends declared and common share repurchases as compared to $73.1 million in the prior year period. (1) For a full explanation of the Company's use of non-IFRS financial measures, please refer to the section of this press release with the heading "Non-IFRS Financial Measures". (2) These financial results exclude the $31.8 million dollars that was recorded in the Company's Q3 2020 financial results due to the Canada Emergency Wage Subsidy ("CEWS") program.  The Company's 2021 financial results do not include any amounts related to the CEWS program since the Company did not receive any CEWS in 2021.  Mike Walsh, President and CEO of LFL commented, "During Q3, our team continued to harness the power of LFL's national omnichannel retail and distribution platform to generate the best top line results in the Company's history, as well as record profitability. We are unwavering in our commitment to ensuring that customers can access a wide selection of products and services where, when and how they want to shop, and even more importantly, enabling them to take delivery of those products as quickly and efficiently as possible during these unprecedented times. This commitment, along with effective marketing strategies, translated into 8.3% revenue growth in the quarter and steady gross margins compared to the same period last year. Our team also maintained its focus on cost containment and efficiency, which drove 26.2% growth in adjusted diluted earnings per share." Mr. Walsh continued, "This was my first full quarter as the Company's CEO and I see plenty of opportunity to continue building on our solid Q3 results, leveraging an exceptional combination of retail, e-commerce, wholesale, service and distribution assets, and a rock-solid balance sheet. Our team has a proven track record of delivering financial performance even in challenging environments, and now has more tools at its disposal. One of those tools is the Company's ecommerce platform, which continues to demonstrate its growth potential and scalability, with 48% growth in Q3 on top of 235% growth in the same period last year. Furthermore, in an environment of widespread supply chain disruptions, LFL is uniquely positioned to continue gaining market share in key product categories, backed by a network of warehouses and efficient distribution centers across the country, and one of the nation's largest last mile delivery services. We have one of the most dedicated teams I have ever had the pleasure of working with, and I look forward to continuing to work together to delight our customers while delivering profitable growth for shareholders." Summary of Consolidated Results For the Three months ended (C$ in millions except %, share and per share amounts) September 30, 2021 September 30, 2020 $ Increase(Decrease) % Increase(Decrease) Total system-wide sales (1) 825.5 762.8 62.7 8.2% Franchise sales (1) 142.3 132.0 10.3 7.8% Revenue 683.2 630.8 52.4 8.3% Cost of sales 381.3 352.0 29.3 8.3% Gross profit 301.9 278.8 23.1 8.3% Gross profit margin as a percentage of revenue 44.19% 44.20% Selling, general and administrative expenses (2) (3) 216.3 210.6 5.7 2.7% SG&A as a percentage of revenue (3) 31.66% 33.39%.....»»

Category: earningsSource: benzingaNov 10th, 2021

Amazon-backed Rivian aims for $66.5 billion market value as the Tesla rival goes public at a higher price than expected

Rivian has priced its IPO at $78 per share, higher than it had initially expected, as excitement builds about the electric car maker. Rivian's valuation puts it up there with Ford and General Motors. SOPA Images/Getty EV startup Rivian is targeting a market valuation of $66.5 billion in its blockbuster IPO on Wednesday. Rivian has priced its IPO at $78 per share, higher than expected, and it expects to raise $11.9 billion. The Tesla rival is currently making big losses but that valuation puts it in the ballpark of Ford and GM. Amazon-backed EV startup Rivian priced its initial public offering at $78 per share, giving the company a market value of $66.5 billion as it gears up for one of the biggest floats in US history on Wednesday.Rivian said in a filing on Tuesday night that it had sold 153 million shares at $78 per share, having previously expected to sell 135 million at between $72 and $74.The company expects to raise $11.9 billion from the share sale, which would put it in the top 10 biggest IPOs of all time, according to Renaissance Capital data. It will trade on the Nasdaq exchange with the ticker RIVN.Rivian was founded in 2009 and builds electric vehicles, with a focus on trucks. The company made a loss of $994 million in the first six months of the year as it spent heavily to ramp up production.Despite its big losses, its $78-a-share IPO price would give the company a market value of $66.5 billion. That would put Rivian in the same ballpark as General Motors, worth $85.1 billion, and Ford, worth $80.4 billion. Fellow EV startup Lucid, which went public earlier this year via a SPAC deal, has a $74.3 billion market capitalization.Read more: Morgan Stanley says these 9 stocks are its top picks from a portfolio of market-beating ideas that's crushed the S&P 500 for 3 yearsThe sky-high valuation is a sign of the lofty expectations for Rivian. Investors' hopes have no doubt been spurred by the success of Tesla, whose revenue came in at $13.8 billion in the third quarter and which now has a market capitalization of more than $1 trillion.Rivian boasts big name investors including Ford and Amazon, which owned 14.4% and 22.4% of class A shares respectively prior to the IPO.Amazon has ordered 100,000 trucks for delivery by 2025. Rivian overall has 55,400 preorders for its R1T truck and R1S SUV, which it expects to fulfil by 2023.To try to drum up interest on Main Street, Rivian plans to sell up to 0.4% of the shares on offer to retail investors through SoFi Securities. In IPOs, most of the stock is sold by the underwriters to institutions and will only become available to retail investors when it's resold in the following days.Read the original article on Business Insider.....»»

Category: topSource: businessinsiderNov 10th, 2021

Is It Better to Buy Electric Vehicle ETFs Than Rivian IPO?

The market is abuzz with the high-profile Rivian IPO that is expected to hit this week. However, some analysts are skeptical about the valuation of the IPO. The market is abuzz with the high-profile Rivian IPO that is expected to hit this week. The Amazon-based EV startup's ticker symbol will be RIVN. With American electric vehicle manufacturers Tesla (TSLA) (up 34.8%) and Lucid LCID (up 358.7%) soaring this year, all eyes are glued on the Rivian IPO.Rivian Automotive, backed by Amazon.com Inc., lately boosted the expected offer price of its shares, with the electric vehicle manufacturer aiming a valuation of as much as $65 billion in its initial public offering.Rivian had earlier aimed for a valuation of more than $53 billion at $62 per share. The company now expects to sell 135 million shares in the range of $72-$74 per share to raise nearly $10 billion on Nov 9. Such optimism came after a successful investor roadshow.If the target is achieved, the electric vehicle maker would be potentially almost as valuable as rival Honda Motor. Among other U.S. automakers vying for EV market share, General Motors (GM) has a market valuation of $86.42 billion, and Ford (F) $79.8 billion as of Nov 8. Lucid Motors, which hit the market earlier this year via a SPAC merger, has a market cap of around $74 billion.Also, it would make Rivian the third-largest initial public offering by funds raised in the past decade in the United States. Only three other companies (Alibaba, Meta Platforms and Uber) have raised more than $8 billion while going public since 2011, according to data from Dealogic, as quoted on CNBC.Since last year, companies in the EV space are appearing red-hot, especially among SPAC investors as they are looking for a Tesla-like investment. Tesla shares recorded their biggest monthly rally in almost a year to cap October. It became a trillion-dollar company in the month.Is Rivian IPO At All Lucrative?Analysts have various views on it.Notably,Rivian is manufacturing commercial last-mile delivery vans for Amazon, which has said it plans to have 10,000 vans on the road by 2022 and 100,000 by 2030. Rivian also beat Tesla, GM and Ford to the market with an electric pickup, the R1T, which has been well-accepted by users. The company plans to deliver 1,000 RITs by the end of the year.But then David Trainer – a writer on Seeking Alpha indicated that about $65 billion valuation that Rivian is currently looking for is well below the $80 billion valuation the company originally wanted, but the current one is also too high.“Rivian’s $52 billion valuation implies that Rivian will sell 2 million vehicles in 2030, or nearly 2.5 times the number of Tesla vehicles produced during the past 12 months,” the analyst noted. Per the skeptical analyst, Rivian has yet to manufacture a considerable number of vehicles and lacks the infrastructure and experience than its big-shot competitors as well as incumbents  like General Motors (GM) and BMW. The two auto behemoths have “decades of experience and multi-billion dollar plans to expand EV production” pet the seekingalpha article.Right Time to Buy Electric Vehicle ETFs?The ongoing global push for restoration of climate, President inclination for the same, emerging countries’ pledge for being carbon-neutral in the COP-26 Glasgow and the higher demand for alternative energy amid the fossil fuel rally are great for electric vehicle’s future.Even if Rivian IPO comes out as a pricey bet, the sheer demand for the EV segment would boost the sector ETFs.Most big-shot companies, including Apple (AAPL), are also eyeing the space. A few electric-vehicle ETFs like Global X Autonomous & Electric Vehicles ETF DRIV , SPDR S&P Kensho Smart Mobility ETF HAIL , iShares Self-Driving EV and Tech ETF IDRV and Simplify Volt RoboCar Disruption and Tech ETF VCAR will gain from the EV’s growing acceptance. These ETFs may also add the high-profile stock Rivian after it goes public. Investors can track the event closely and bet on the EV ETFs beforehand. Want key ETF info delivered straight to your inbox? Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Global X Autonomous & Electric Vehicles ETF (DRIV): ETF Research Reports iShares SelfDriving EV and Tech ETF (IDRV): ETF Research Reports SPDR S&P Kensho Smart Mobility ETF (HAIL): ETF Research Reports Simplify Volt Robocar Disruption and Tech ETF (VCAR): ETF Research Reports Lucid Group, Inc. (LCID): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksNov 9th, 2021

19 pitch decks that startups used to raise millions to disrupt media and advertising

They're pitching solutions to automate ad creation, simplify market research, and more. Toch.ai Investors are pouring money into advertising, media, and marketing startups. These startups are trying to capitalize on changing consumer habits, automate and simplify ad creation, and more. Check out these 19 pitches to see how these startups sold their visions to VCs and other investors. See more stories on Insider's business page. Investors are pouring money into startups that are trying to disrupt advertising, media, and marketing.Insider has been tracking these startups that are using tech to capitalize on changing consumer media habits and marketers' desire to reach new audiences and ensure their ads are working.Check out these pitch decks that they've used to sell their vision and raise millions from PE and VC investors.They range from tools that measure digital ad performance to platforms for people seeking out online entertainment.Audio adsUK-based adtech firm AudioMob offers audio ads that appear in mobile games. It pitches the ads as "non-intrusive" because they don't interrupt the gameplay, the ads only play if a user's device is set to a certain volume, and they don't rely on hypertargeted tracking techniques.It just raised a $14 million Series A round from investors including Makers Fund, Lightspeed Venture Partners, Sequoia Capital, and Google, to grow its team and expand to new products.See the pitch deck that helped audio ads firm AudioMob raise $14 million from investors including Makers Fund, Lightspeed Venture Partners, and GoogleVideo editingToch.ai is an India-based startup that aims to democratize video editing, arguing that the technologies to produce and distribute videos require time-consuming, manual processes, and existing video editing software can be pricey.Toch.ai has raised $11.75 million in Series A funding led by Moneta Ventures to support an expansion into bigger markets like the US.See the pitch deck that helped a video-editing startup raise $12 million to take on Adobe and expand into the USContextual advertisingContextual advertising has become a buzzy area in adtech as the sector shifts away from the precision-targeting and tracking of individual users. Founded seven years ago by two former Googlers, Seedtag specializes in contextual advertising - using data and artificial intelligence to place ads within relevant publisher content that users should be more likely to interact with. Seedtag just raised a $40 million funding round, led by Oakley Capital. See the pitch deck that helped contextual advertising firm Seedtag raise $40 million. The European adtech company now plans a US expansion.Ad automationDan Pantelo started a performance marketing agency in college and pivoted to software after discovering that creative testing was the most important and time-consuming part of making ads.Today, his marketing technology startup Marpipe claims to help advertisers figure out which ads perform best by automatically testing hundreds of variations.Marpipe just raised $8 million in Series A for a total of $10 million raised to date.The key pitch deck slides that helped an ad automation startup raise $10 millionFreelance consulting Catalant CEO Patrick Petitti. Catalant Technologies Investors are pouring millions into platforms like Catalant Technologies that connect companies to independent advertising and consulting professionals, a need that's growing as people quit in the pandemic.Catalant has raised more than $100 million by pitching itself as an alternative to consulting giants like McKinsey.See the key slides a staffing platform used to raise more than $100 million from investors like Morningside CEO Gerald ChanMarketing strategyAd agency vets Grant McDougall, Liza Nebel, and Matt Gross started BlueOcean in 2019, when they saw an opening to use machine learning to simplify market research and tell marketers how they and their competitors were performing. Now, they count Microsoft, Google, Cisco, Bloomingdale's, and Diageo as clients.The software-as-a-service startup just raised $15 million in Series A funding from private equity firm Insight Partners.Pitch deck reveals how an AI startup that helps brands like Google and Microsoft plan their marketing raised $15 millionData management toolsGoogle and Apple's moves to clamp down on third-party cookies and the rise of online shopping have advertisers clamoring for help managing all their customer data so they can effectively market to them.One such company is 4-year-old Amperity, which sells software that clients like Starbucks, Patagonia, and Crocs use to manage stats from sales, email, e-commerce, and loyalty card programs.Amperity has raised $100 million in its Series D from existing investors including Tiger Global Management, Declaration Partners, and Madrona Venture Group, for a total of $187 million.Here's the pitch deck that helped a marketing tech startup raise $100 million at a $1 billion valuation to help brands manage their dataOut-of-home advertising platformOutdoor advertising is coming back after being crushed during the pandemic, and adtech startup OneScreen.ai is hoping to cash in with a platform for brands to search, buy, run and measure their out-of-home ad campaigns.OneScreen just raised $1.2 million in pre-seed funding in a round led by Florida-based fund TechFarms Capital with other investors including HubSpot cofounders Brian Halligan and Dharmesh Shah, Wayfair's alumni fund Wayfund, Lola.com CEO Mike Volpe, and BuySellAds.com CEO Todd Garland.See the pitch deck that Google, Hubspot and Wayfair alums used to raise $1.2 million to build the 'Amazon of out-of-home advertising'Consumer data-collectionTracer started in 2015 as a unit of Gary Vaynerchuk's ad agency VaynerMedia that automatically collects and organize data that isn't personally identifiable. Led by Tracer co-founder and CEO Jeffrey Nicholson, it also offers free consulting services. It started by helping VaynerMedia oversee hundreds of millions in ad buys for clients like Oreo maker Mondelez; today, clients include other ad agencies like Labelium; Condé Nast; and pharma giant Sanofi.Tracer recently raised $9.9 million in seed funding led by big names like former Walmart and Amazon exec Marc Lore and NBA star Kevin Durant's firm Thirty Five Ventures.Read the pitch deck a Gary Vaynerchuk-backed data startup used to raise $10 million from investors like Walmart's ex-ecommerce CEOBuilding lifetime customersAs people do more of their shopping online, marketers are trying to get them to become repeat customers.Former Paypal and Facebook product and data analytics manager Emad Hasan says his startup Retina helps brands like Dollar Shave Club and Madison Reed acquire and keep customers by building lookalike audiences based on companies' order history and shopper attributes.It just raised $8 million in Series A funding from Alpha Intelligence Capital, Vertical Venture Partners, and others. This investor deck helped a former Facebook product manager raise $8 million to help brands boost customers' long-term valueData-buying toolsNick Jordan founded 5-year-old Narrative to let advertisers buy data without the need for data brokers like Epsilon and Acxiom that can be known for not disclosing their data sources or what cut they take.The marketing-tech firm makes money by taking a cut of data sales and through larger software as a Service (or SaaS) contracts where marketers pay monthly fees for data.Narrative in September raised $8.5 million in a Series A funding round led by G20 Ventures and which included Glasswing Ventures and MathCapital, bringing its total funding to $14 million.Here's the investor deck that helped startup Narrative raise $8.5 million to help marketers buy data safelySupport for online sellersAdtech vet Paul Palmieri joined Tradeswell as CEO based on his experience as a VC investor, where he saw dozens of DTC companies whose businesses weren't scalable.Tradeswell is a SaaS platform that consolidates brands' marketing, retail, inventory, logistics, forecasting, lifetime value and financial information. Its pitch is that it gives brands insights so they know what to sell to whom, where, and at what price.US e-commerce is set to be worth $1 trillion by 2023, according to a recent report by Insider Intelligence's eMarketer, and Tradeswell says it can help traditional and DTC brands save millions of dollars in outsourced contracts and boost their sales.Tradeswell recently raised $3.3 million in seed round funding from Signalfire and Construct Capital.This investor deck helped an entrepreneur raise $3.3 million to build 'the Bloomberg terminal' for online sellers Ad performance tools BrandTotal BrandTotal is a marketing analytics company that pitches advertisers on the premise that most digital and social media ads are now "dark," or visible only to the people they're targeting. It joins other businesses that promise greater visibility into digital advertising such as Pathmatics, which measures how much brands spend on Facebook and other platforms.BrandTotal co-founder Alon Leibovich said the company uses AI to track ads and help advertisers understand their competitors' strategies. This pitch has helped BrandTotal win business from big brands like L'Oréal and raise $12 million in a Series B funding round, bringing its total funding to $20 million. Canada's INcapital Ventures led the latest round along with Maor Investments, Glilot Capital Partners, Flint Capital, KDC Media Fund, and FJ Labs.This investor deck helped startup BrandTotal raise $20 million to date to help advertisers like L'Oréal see how their digital ads are workingE-commerce advertising servicesBrands are increasingly becoming advertising platforms, giving rise to a cottage industry of adtech companies that help marketers build their own ad businesses.One such firm is 9-year-old adtech firm Adzerk, which is rebranding as Kevel. EMarketer reports that e-commerce advertising will be a $17 billion market this year. Retailers like Walgreens, Walmart, and Instacart have led the charge, but Kevel sees an opportunity for other types of brands to build ad businesses of their own.In December, Kevel raised $11 million in a Series A round led by Fulcrum Equity with Commerce Ventures, MathCapital and Food Retail Ventures also participating.A digital ad firm just raised $11 million to help brands like United Airlines and Ticketmaster build their own ad businessesTargeted ad tools ID5 Google's and Apple's moves to clamp down on privacy and digital-ad targeting have been a boon for startups trying to find workarounds like identity solutions.One such firm is ID5, a European startup that helps advertisers find audiences to target and make sure people don't repeatedly see the same ads. It makes money from licensing its ID to adtech companies for a monthly fee that ranges from $5,000 to $30,000, CEO Mathieu Roche said. The company gives away its technology to publishers to grow adoption of the ID.ID5 closed a $6 million Series A funding round in March from Alliance Entreprendre, Progress Ventures, and 360 Capital Partners. The 4-year-old company has raised a total of $7.5 million.Read the pitch deck that a startup used to raise $6 million to save targeted advertisingPrivacy compliance helpNew privacy regulations are springing up around the globe, and publishers and marketers are turning to technology companies to stay on the right side of these laws and avoid huge fines.One of the companies capitalizing on the increased focus on data privacy is Sourcepoint. Founded by adtech vets Ben Barokas and Brian Kane, the US-based technology company has a platform that lets publishers and advertisers get legal consent from people to use their data.Sourcepoint recently raised $17 million in additional funding, led by new investor Arrowroot Capital, bringing its total funding to $47.8 million since it launched in 2015.The pitch deck used to raise $17 million for a startup that helps advertisers and publishers comply with privacy lawsReal-time market research Matt Britton Agency veteran Matt Britton pitches his consumer intelligence startup Suzy as an always-on digital assistant like Siri or Alexa for marketers. It has a consumer panel that lets marketers conduct surveys and research on subjects like product development and ad effectiveness testing.He just raised $50 million in Series D after closing a $34 million Series C last year, bringing its total raised to $100 million.H.I.G. Growth Partners, an affiliate of H.I.G. Capital, led the round, with Rho Capital Partners, Bertelsmann Digital Media Investments, Foundry Group, and Triangle Peak Partners also participating.See the pitch deck a market research startup that's trying to rival Qualtrics and SurveyMonkey used to raise $50 millionLivestreaming tools for creatorsLivestreaming startup Restream was founded in 2015 to help gaming content creators grow their reach by livestreaming to Twitch and YouTube at the same time.It's since expanded to serve musicians, politicians, influencers, publishers, non-profit organizations, and other businesses and says its goal is to democratize broadcasting. Restream said half its 2.5 million users are now non-gamers. Most of its users are nonpaying, but it sells subscriptions from $19 to $299 per month that come with features like the ability to record streams and access to more customer support.Restream announced in August that it had raised $50 million in fresh funding from investors including Sapphire Ventures and Insight Partners.Read the 14-slide pitch deck that helped livestreaming startup Restream raise $50 million amid the pandemic Video streaming subscriptionsCuriosityStream is a 5-year-old streaming service founded by former Discovery Communications founder John Hendricks. It went public in fall 2020 through a reverse merger with Software Acquisition Group, a SPAC led by Jonathan Huberman, who formerly led video adtech firm Ooyala.CuriosityStream is differentiated from other streaming services in that it focuses on factual content like documentaries and features, with more than 3,100 titles available. It reported 13 million paying subscribers buying monthly and yearly subscriptions ranging from $3 a month to $70 a year.The deal with Software Acquisition Group gave CuriosityStream $180 million in cash.The investor deck that CuriosityStream used to secure $180 million to take on rival video streaming servicesReaching online sports fans Overtime Overtime wants to be the next ESPN, but for social media.It started 2016 by Endeavor vets Dan Porter and Zack Weiner with a focus on high-school sports and athletes and has expanded into areas including esports. Overtime captures game highlights through people it pays to film events and also creates original programming and events. It distributes content mainly on social platforms like YouTube, Instagram, and TikTok. Its core business is making money from ads, sponsorships, and merchandise, and projects making $200 million in annual revenue by 2024.It recently raised $80 million from investors including Amazon founder Jeff Bezos, rapper Drake, and Reddit cofounder Alexis Ohanian, The Wall Street Journal recently reported.Leaked pitch deck shows how sports-media startup Overtime plans to reach $200 million in revenue by 2024Read the original article on Business Insider.....»»

Category: topSource: businessinsiderNov 9th, 2021

Hudbay Announces Third Quarter 2021 Results

TORONTO, Nov. 03, 2021 (GLOBE NEWSWIRE) -- Hudbay Minerals Inc. ("Hudbay" or the "company") ((TSX, NYSE:HBM) today released its third quarter 2021 financial results. All amounts are in U.S. dollars, unless otherwise noted. Third Quarter Operating and Financial Results Generated $359.0 million in revenue, $103.5 million of operating cash flow before change in non-cash working capital and $119.3 million of adjusted EBITDAi in the third quarter of 2021 from higher realized base metals prices and higher gold sales volumes, partially offset by lower base metals sales volumes. Consolidated copper production in the third quarter was 23,245 tonnes; quarterly consolidated gold production increased by 35% to 53,872 ounces in the third quarter, compared to the second quarter in 2021, a record for Hudbay. Consolidated cash cost and sustaining cash cost per pound of copper produced, net of by-product creditsi, were $0.62 and $1.97, respectively, an improvement of 26% and 12% compared to the second quarter of 2021. Third quarter Peru production was boosted by significantly higher gold grades from Pampacancha and record gold recoveries, leading to record quarterly gold revenue. Pampacancha production continues to ramp-up, achieving a 109% increase in ore production quarter over quarter. Third quarter Manitoba production benefited from higher throughput and higher gold grades at Lalor but was negatively impacted by lower zinc grades and zinc recoveries, limiting overall zinc concentrate feed to the zinc plant. Manitoba results included initial gold production from New Britannia's gold circuit. On track to meet annual production guidance for copper, gold, zinc and silver in concentrate and doré, consolidated sustaining capital expenditures, and Manitoba unit operating cost in 2021. After adjusting for unbudgeted COVID-related costs in Peru, full year unit operating costs for Peru are expected to be around the top end of the 2021 guidance range. Third quarter net loss and loss per share were $170.4 million and $0.65, respectively. After normalizing for an impairment charge related to higher estimated closure costs associated with the company's updated Flin Flon closure plan and the Flin Flon restructuring charges, amongst other items, third quarter adjusted net earningsi per share were $0.15. Cash and cash equivalents increased during the third quarter to $297.5 million as at September 30, 2021, mainly as a result of $139.8 million of cash generated from operations, partially offset by $89.1 million of capital investments primarily for the construction of the New Britannia project and sustaining capital expenditures and $33.6 million of interest paid on the company's senior unsecured notes. Executing on Growth Initiatives New Britannia has achieved project completion as construction activities at the new copper flotation facility concluded in October. Refurbishment and commissioning activities at the gold mill were completed in July 2021, and the mill achieved first gold production on August 11, 2021. Commissioning of the copper circuit was completed and first production of concentrate was achieved in October, ahead of the original schedule, while ramp-up activities at the flotation plant continue. Annual gold production from Lalor and the Snow Lake operations is on track to increase to over 180,000 ounces at an average cash cost and sustaining cash cost, net of by-product credits, of $412 and $788 per ounce of gold, respectively, during the first six full years of operation starting in 2022. Mining activities at the Pampacancha satellite pit continue to advance as planned with grades and tonnes reconciling well against the mine plan, achieving the expected increase in gold grades in 2021 and on track for achieving higher copper grades in 2022, in line with recent company guidance. Recent Copper World drilling has identified three new deposits for a total of seven distinct deposits with a combined strike length of over seven kilometres. The company remains on track to complete an initial inferred resource estimate before the end of the year and a preliminary economic assessment in the first half of 2022. Scoping study planned for 2022 to examine the opportunity to reprocess tailings in Flin Flon after the closure of the 777 mine, which could further increase metal production, defer closure costs and reduce the environmental footprint of the tailings facility. Amended and restated Hudbay's senior secured revolving credit facilities to increase available borrowings to $450 million and enhance the company's financial flexibility, while extending the maturity to 2025. "Our third quarter performance demonstrates our continued focus on execution and delivery in 2021 as we enjoyed the first full quarter of Pampacancha production and we started to see the benefits of higher gold from the New Britannia mill," said Peter Kukielski, President and Chief Executive Officer. "We also recently commissioned the new copper flotation circuit at New Britannia, ahead of our expected timelines. With the completion of the Pampacancha and New Britannia growth projects, we are on the cusp of achieving significantly increased cash flows from these high-return investments for many years to come. We are also very pleased to have continued exploration success at our Copper World project and look forward to advancing the opportunity for a private land operation in Arizona to unlock further value for our stakeholders." Summary of Third Quarter Results Cash generated from operating activities in the third quarter of 2021 increased to $139.8 million, compared to $96.4 million in the second quarter and $51.8 million in the first quarter of 2021. Operating cash flow before change in non-cash working capital was $103.5 million during the third quarter of 2021, reflecting a decrease of $29.3 million compared to the second quarter of 2021, primarily as a result of lower base metals sales volumes and lower realized copper and precious metals prices, partially offset by higher precious metals sales volumes. Consolidated copper production in the third quarter of 2021 was 23,245 tonnes, generally in-line with the second quarter of 2021 as slightly lower copper production in Peru was offset by higher copper production in Manitoba. Consolidated gold production in the third quarter of 2021 was 53,872 ounces, a quarterly record for Hudbay and a 35% increase from the second quarter of 2021, due to higher gold grades from Pampacancha and record gold recoveries in Peru, along with significantly higher gold grades at Lalor. Zinc production in the quarter was 20,844 tonnes, a slight decrease from the second quarter as production volumes were lower in Flin Flon. Consolidated silver production increased to 763,168 ounces, an 11% increase versus the second quarter of 2021, primarily due to higher silver grades milled in Peru and Snow Lake. In the third quarter of 2021, consolidated cash cost per pound of copper produced, net of by-product creditsi, was $0.62, compared to $0.84 in the second quarter of 2021. This 26% decrease was mainly a result of lower operating costs. Sustaining cash cost per pound of copper produced, net of by-product creditsi, decreased to $1.97 in the third quarter of 2021, from $2.25 in the second quarter, primarily due to the same factors affecting cash cost as well as slightly lower sustaining capital expenditures. Consolidated cash cost and sustaining cash cost per pound of copper produced, net of by-product credits, are expected to remain within the guidance ranges for 2021. Net loss and loss per share in the third quarter of 2021 were $170.4 million and $0.65, respectively, compared to a net loss and loss per share of $3.4 million and $0.01, respectively, in the second quarter of 2021. Third quarter results were negatively impacted by an updated closure plan reflecting higher estimates for closure activities in Flin Flon, primarily related to water treatment costs. The higher closure cost estimate has resulted in an increase to the company's environmental obligation and a corresponding increase to Flin Flon's property plant and equipment. However, as the closure of Flin Flon is expected to commence within 12 months, an impairment charge was made resulting in a loss of $147.3 million. The quarterly financial results were also negatively impacted by Flin Flon restructuring charges comprising an inventory supplies write down of $5.4 million and a severance accrual of $3.6 million for unionized employees, as well as an increase in past service pension cost provision of $4.2 million related to pensions for Manitoba unionized employees. Adjusted net earningsi and adjusted net earnings per sharei in the third quarter of 2021 were $38.2 million and $0.15 per share after normalizing for an impairment due to the updated Flin Flon closure plan and the Flin Flon restructuring charges, among other items. This compares to adjusted net earnings and adjusted net earnings per share of $5.4 million and $0.02 per share in the second quarter of 2021. Third quarter adjusted EBITDAi was $119.3 million, compared to $143.2 million in the second quarter of 2021, primarily due to lower base metal sales volumes and lower realized copper and precious metals prices, partially offset by higher precious metals sales volumes. As at September 30, 2021, Hudbay's liquidity includes $297.5 million in cash and cash equivalents as well as undrawn availability of $297.3 million under its credit facilities. The company's liquidity position was further enhanced in October through the successful renegotiation of the credit facilities to increase available borrowings to $450 million, while extending the maturity to 2025. Financial Condition ($000s)   Sep. 30, 2021 Jun. 30, 2021 Dec. 31, 2020 Cash and cash equivalents   297,451 294,287 439,135 Total long-term debt   1,182,612 1,181,195 1,135,675 Net debt1   885,161 886,908 696,540 Working capital   159,917 219,799 306,888 Total assets   4,504,661 4,587,827 4,666,645 Equity   1,490,180 1,658,924 1,699,806 1 Net debt is a non-IFRS financial performance measure with no standardized definition under IFRS. For further information, please see the "Non-IFRS Financial Reporting Measures" section of this news release. Financial Performance   Three Months Ended     Sep. 30, 2021 Jun. 30, 2021 Sep. 30, 2020 Revenue $000s 358,961 404,242 316,108 Cost of sales $000s 444,379 322,060 276,830 (Loss) earnings before tax $000s (147,830) 14,819 (23,944) (Loss) earnings $000s (170,411) (3,395) (23,955) Basic and diluted (loss) earnings per share $/share (0.65) (0.01) (0.09) Adjusted earnings (loss) per share1 $/share 0.15 0.02 (0.10) Operating cash flow before change in non-cash working capital $ millions 103.5 132.8 84.4 Adjusted EBITDA1 $ millions 119.3 143.2 96.1 1 Adjusted loss per share and adjusted EBITDA are non-IFRS financial performance measures with no standardized definition under IFRS. For further information, please see the "Non-IFRS Financial Reporting Measures" section of this news release. Consolidated Production and Cost Performance Three Months Ended     Sep. 30, 2021 Jun. 30, 2021 Sep. 30, 2020 Contained metal in concentrate produced1         Copper tonnes 23,245 23,474 25,395 Gold ounces 53,872 39,848 29,277 Silver ounces 763,168 685,916 671,685 Zinc tonnes 20,844 21,538 30,570 Molybdenum tonnes 282 295 392 Precious metal in doré produced         Gold ounces 404 — — Silver ounces 10 — — Payable metal sold         Copper tonnes 21,136 25,176 25,903 Gold2 ounces 47,844 38,205 30,605 Silver2 ounces 701,601 577,507 705,495 Zinc3 tonnes 21,619 25,361 26,520 Molybdenum tonnes 304 265 313 Consolidated cash cost per pound of copper produced4         Cash cost $/lb 0.62 0.84 0.65 Peru $/lb 1.26 1.85 1.54 Manitoba $/lb (1.64) (3.51) (3.41) Sustaining cash cost $/lb 1.97 2.25 2.02 Peru $/lb 2.31 2.69 2.29 Manitoba $/lb 0.75 0.36 0.83 All-in sustaining cash cost $/lb 2.18 2.48 2.25 1 Metal reported in concentrate is prior to deductions associated with smelter contract terms.2 Includes total payable gold and silver in concentrate and in doré sold.3 Includes refined zinc metal sold and payable zinc in concentrate sold.4 Cash cost, sustaining cash cost and all-in sustaining cash cost per pound of copper produced, net of by-product credits, are non-IFRS financial performance measures with no standardized definition under IFRS. For further information, please see the "Non-IFRS Financial Reporting Measures" section of this news release. Peru Operations Review Peru Operations Three Months Ended     Sep. 30, 2021 Jun. 30, 2021 Sep. 30, 2020 Constancia ore mined1 tonnes 6,208,019 8,016,373 8,455,668 Copper % 0.30 0.30 0.31 Gold g/tonne 0.04 0.04 0.03 Silver g/tonne 2.76 3.02 2.55 Molybdenum   0.01 0.01 0.02 Pampacancha ore mined tonnes 2,050,813 982,992 — Copper % 0.27 0.26 — Gold g/tonne 0.27 0.27 — Silver g/tonne 3.58 4.43 — Molybdenum   0.01 0.01 — Ore milled tonnes 6,985,035 7,413,043 7,480,655 Copper % 0.30 0.31 0.33 Gold g/tonne 0.11 0.07 0.03 Silver g/tonne 3.93 2.88 2.68 Molybdenum   0.01 0.01 0.02 Copper recovery % 84.9 83.3 83.3 Gold recovery % 71.9 62.2 51.6 Silver recovery % 59.1 68.2 66.7 Molybdenum recovery   33.5 33.3 30.4 Contained metal in concentrate       Copper tonnes 18,072 19,058 20,803 Gold ounces 17,531 10,220 3,333 Silver ounces 521,036 468,057 430,208 Molybdenum tonnes 282 295 392 Payable metal sold       Copper tonnes 16,065 19,946 21,654 Gold ounces 16,902 5,638 3,753 Silver ounces 457,263 315,064 433,595 Molybdenum tonnes 304 265 313 Combined unit operating cost2,3,4 $/tonne 11.62 11.25 9.85 Cash cost4 $/lb 1.26 1.85 1.54 Sustaining cash cost4 $/lb 2.31 2.69 2.29 1 Reported tonnes and grade for ore mined are estimates based on mine plan assumptions and may not reconcile fully to ore milled.2 Reflects combined mine, mill and general and administrative ("G&A") costs per tonne of ore milled. Reflects the deduction of expected capitalized stripping costs.3 Combined unit cost, cash cost and sustaining cash cost are non-IFRS financial performance measures with no standardized definition under IFRS. For further information, please see the "Non-IFRS Financial Reporting Measures" section of this news release. 4 Includes approximately $4.8 million, or $0.69 per tonne, of COVID-related costs during the three months ended September 30, 2021 and $6.3 million, or $0.85 per tonne, during the three months ended June 30, 2021. While Peru has experienced notable improvements in COVID-19 statistics throughout 2021, Hudbay continues to maintain stringent COVID-19 measures and controls to ensure the safety of its workforce, partners and the communities in which the company operates. This has allowed Constancia to continue to operate safely although it has resulted in elevated unit operating costs due to the ongoing COVID-related protocols. During the third quarter 2021, the Constancia operations produced 18,072 tonnes of copper, 17,531 ounces of gold, 521,036 ounces of silver and 282 tonnes of molybdenum. While copper production was 5% lower than the second quarter due to a planned semi-annual mill maintenance shutdown in July, gold and silver production increased by 72% and 11%, respectively, due to significantly higher gold and silver head grades from Pampacancha and significantly higher gold recoveries. This was a record quarter for gold production, grades and recoveries in Peru. Other than molybdenum, which is expected to fall slightly below the 2021 guidance range but in-line with the recently published mine plan, Hudbay expects the production of all other metals in Peru to be in line with the 2021 full year guidance. Total ore mined during the third quarter of 2021 decreased by 8% from the second quarter of 2021 as mining levels were optimized for mill throughput. Ramp-up of mining activity at Pampacancha has increased steadily since first production in April 2021. Total Pampacancha ore mined during the third quarter increased by 109% to 2.1 million tonnes compared to the second quarter of 2021. Tonnes of ore milled during the third quarter of 2021 were 6% lower than the second quarter of 2021 due to the scheduled mill maintenance shutdown. Milled grades for copper were slightly lower than the second quarter but were in line with the mine plan. Milled grades for gold and silver were 57% and 36% higher, respectively, than the second quarter due to significantly higher precious metal head grades from Pampacancha. Peru achieved record gold recoveries in the third quarter of 2021, significantly above the second quarter of 2021, mainly due to higher grades from Pampacancha. Meanwhile, copper recoveries increased due to lower levels of contaminants and silver recoveries decreased as a result of lower-than-expected recoverable silver values in the earlier, more oxidized ores from Pampacancha. Recent metallurgical test work indicates that Pampacancha silver recoveries are expected to increase to targeted levels in 2022. Combined mine, mill and G&A unit operating costs in the third quarter of 2021 were $11.62 per tonne, compared to $11.25 in the second quarter of 2021, primarily due to higher milling costs and fewer tonnes milled due to the scheduled mill maintenance program during the quarter. Costs have been generally higher in 2021 as a result of higher ore hardness, higher steel prices affecting grinding media costs, higher fuel prices impacting hauling costs and COVID-19 expenditures. COVID-related costs in Peru were $4.8 million in the third quarter and are expected to continue at a similar run-rate into the fourth quarter of 2021. Unit operating costs in the third quarter were $10.93 per tonne excluding these COVID-related costs. Hudbay expects Peru unit operating costs to be around the top end of the 2021 guidance range after adjusting for unbudgeted COVID-related costs. Peru's cash cost per pound of copper produced, net of by-product credits, in the third quarter of 2021 was $1.26, a 32% improvement over the second quarter. The significant reduction in cash cost was due to higher by-product credits and lower operating costs, partially offset by lower copper production. Peru's sustaining cash cost per pound of copper produced, net of by-product credits, in the third quarter of 2021 decreased to $2.31, compared to $2.69 in the second quarter of 2021, due to same factors noted above affecting cash costs, offset by higher sustaining capital expenditures. Manitoba Operations Review Manitoba Operations    Three Months Ended       Sep. 30, 2021   Jun. 30, 2021 Sep. 30, 2020 Lalor ore mined tonnes 392,380 356,951 357,213 Copper % 0.86 0.64 0.66 Zinc % 3.60 3.81 5.98 Gold g/tonne 3.85 3.19 2.28 Silver g/tonne 22.13 22.98 21.23 777 ore mined tonnes 256,536 255,170 264,905 Copper % 1.06 0.82 0.98 Zinc % 3.88 3.57 3.95 Gold g/tonne 1.96 1.97 2.01 Silver g/tonne 22.99 23.35 24.25 Stall Concentrator & New Britannia Mill:       Ore milled tonnes 408,201 317,484 335,739 Copper % 0.82 0.68 0.68 Zinc % 3.58 4.06 6.11 Gold g/tonne 3.84 3.19 2.35 Silver g/tonne 23.32 22.02 22.08 Copper recovery % 84.3 88.8 84.0 Zinc recovery % 88.2 88.1 92.7 Gold recovery % 53.4 55.5 57.4 Silver recovery % 52.7 55.1 57.5 Flin Flon Concentrator:       Ore milled tonnes 258,062 329,503 322,156 Copper % 1.06 0.89 0.99 Zinc % 3.86 3.65 4.07 Gold g/tonne 1.96 2.06 1.99 Silver g/tonne 22.93 23.65 24.01 Copper recovery % 85.2 84.8 83.9 Zinc recovery % 82.2 84.8 87.9 Gold recovery % 58.1 52.9 55.3 Silver recovery % 42.4 37.5 42.0 Total contained metal in concentrate and doré       Copper tonnes 5,173 4,416 4,592 Zinc tonnes 20,844 21,538 30,570 Gold ounces 36,745 29,628 25,944 Silver ounces 242,141 217,859 241,477 Total payable metal sold.....»»

Category: earningsSource: benzingaNov 3rd, 2021

Check out 25 pitch decks that fintechs looking to disrupt trading, banking, and lending used to raise millions

Looking for examples of real fintech pitch decks? Check out pitch decks that Qolo, Lance, and other startups used to raise money from VCs. Check out these pitch decks for examples of fintech founders sold their vision. Yulia Reznikov/Getty Images Insider has been tracking the next wave of hot new startups that are blending finance and tech. Check out these pitch decks to see how fintech founders sold their vision. See more stories on Insider's business page. Fintech VC funding hit a fresh quarterly record of $22.8 billion in the first three months of 2021, according to CB Insights data. While mega-rounds helped propel overall funding, new cash was spread across 614 deals. Insider has been tracking the next wave of hot new startups that are blending finance and tech. Check out these pitch decks to see how fintech founders are selling their vision and nabbing big bucks in the process. You'll see new financial tech geared at freelancers, fresh twists on digital banking, and innovation aimed at streamlining customer onboarding. Real-estate management made easy Agora founders Noam Kahan, CTO, Bar Mor, CEO, and Lior Dolinski, CPO. Agora For alternative asset managers of any type, the operations underpinning sales and investor communications are a crucial but often overlooked part of the business. Fund managers love to make bets on markets, not coordinate hundreds of wire transfers to clients each quarter or organize customer-relationship-management databases.Within the $10.6 trillion global market for professionally managed real-estate investing, that's where Tel Aviv and New York-based startup Agora hopes to make its mark.Founded in 2019, Agora offers a set of back-office, investor relations, and sales software tools that real-estate investment managers can plug into their workflows. On Wednesday, Agora announced a $9 million seed round, led by Israel-based venture firm Aleph, with participation from River Park Ventures and Maccabee Ventures. The funding comes on the heels of an October 2020 pre-seed fund raise worth $890,000, in which Maccabee also participated.Here's the 15-slide pitch deck that Agora, a startup helping real-estate investors manage communications and sales with their clients, used to raise a $9 million seed roundCheckout made easy Bolt's Ryan Breslow. Ryan Breslow Amazon has long dominated e-commerce with its one-click checkout flows, offering easier ways for consumers to shop online than its small-business competitors.Bolt gives small merchants tools to offer the same easy checkouts so they can compete with the likes of Amazon.The startup raised its $393 million Series D to continue adding its one-click checkout feature to merchants' own websites in October.Bolt markets to merchants themselves. But a big part of Bolt's pitch is its growing network of consumers - currently over 5.6 million - that use its features across multiple Bolt merchant customers. Roughly 5% of Bolt's transactions were network-driven in May, meaning users that signed up for a Bolt account on another retailer's website used it elsewhere. The network effects were even more pronounced in verticals like furniture, where 49% of transactions were driven by the Bolt network."The network effect is now unleashed with Bolt in full fury, and that triggered the raise," Bolt's founder and CEO Ryan Breslow told Insider.Here's the 12-page deck that one-click checkout Bolt used to outline its network of 5.6 million consumers and raise its Series DHelping small banks lend CollateralEdge's Joel Radtke, cofounder, COO, and president, and Joe Beard, cofounder and CEO. CollateralEdge For large corporations with a track record of tapping the credit markets, taking out debt is a well-structured and clear process handled by the nation's biggest investment banks and teams of accountants. But smaller, middle-market companies - typically those with annual revenues ranging up to $1 billion - are typically served by regional and community banks that don't always have the capacity to adequately measure the risk of loans or price them competitively. Per the National Center for the Middle Market, 200,000 companies fall into this range, accounting for roughly 33% of US private sector GDP and employment.Dallas-based fintech CollateralEdge works with these banks - typically those with between $1 billion and $50 billion in assets - to help analyze and price slices of commercial and industrial loans that previously might have gone unserved by smaller lenders.On October 20th, CollateralEdge announced a $3.5 million seed round led by Dallas venture fund Perot Jain with participation from Kneeland Youngblood (a founder of the healthcare-focused private-equity firm Pharos Capital) and other individual investors.Here's the 10-page deck CollateralEdge, a fintech streamlining how small banks lend to businesses, used to raise a $3.5 million seed round Quantum computing made easy QC Ware CEO Matt Johnson. QC Ware Even though banks and hedge funds are still several years out from adding quantum computing to their tech arsenals, that hasn't stopped Wall Street giants from investing time and money into the emerging technology class. And momentum for QC Ware, a startup looking to cut the time and resources it takes to use quantum computing, is accelerating. The fintech secured a $25 million Series B on September 29 co-led by Koch Disruptive Technologies and Covestro with participation from D.E. Shaw, Citi, and Samsung Ventures.QC Ware, founded in 2014, builds quantum algorithms for the likes of Goldman Sachs (which led the fintech's Series A), Airbus, and BMW Group. The algorithms, which are effectively code bases that include quantum processing elements, can run on any of the four main public-cloud providers.Quantum computing allows companies to do complex calculations faster than traditional computers by using a form of physics that runs on quantum bits as opposed to the traditional 1s and 0s that computers use. This is especially helpful in banking for risk analytics or algorithmic trading, where executing calculations milliseconds faster than the competition can give firms a leg up. Here's the 20-page deck QC Ware, a fintech making quantum computing more accessible, used to raised its $25 million Series BSimplifying quant models Kirat Singh and Mark Higgins, Beacon's cofounders. Beacon A fintech that helps financial institutions use quantitative models to streamline their businesses and improve risk management is catching the attention, and capital, of some of the country's biggest investment managers.Beacon Platform, founded in 2014, is a fintech that builds applications and tools to help banks, asset managers, and trading firms quickly integrate quantitative models that can help with analyzing risk, ensuring compliance, and improving operational efficiency. The company raised its Series C on Wednesday, scoring a $56 million investment led by Warburg Pincus with support from Blackstone Innovations Investments, PIMCO, and Global Atlantic. Blackstone, PIMCO, and Global Atlantic are also users of Beacon's tech, as are the Commonwealth Bank of Australia and Shell New Energies, a division of Royal Dutch Shell, among others.The fintech provides a shortcut for firms looking to use quantitative modelling and data science across various aspects of their businesses, a process that can often take considerable resources if done solo.Here's the 20-page pitch deck Beacon, a fintech helping Wall Street better analyze risk and data, used to raise $56 million from Warburg Pincus, Blackstone, and PIMCOInvoice financing for SMBs Stacey Abrams and Lara Hodgson, Now cofounders. Now About a decade ago, politician Stacey Abrams and entrepreneur Lara Hodgson were forced to fold their startup because of a kink in the supply chain - but not in the traditional sense.Nourish, which made spill-proof bottled water for children, had grown quickly from selling to small retailers to national ones. And while that may sound like a feather in the small business' cap, there was a hang-up."It was taking longer and longer to get paid, and as you can imagine, you deliver the product and then you wait and you wait, but meanwhile you have to pay your employees and you have to pay your vendors," Hodgson told Insider. "Waiting to get paid was constraining our ability to grow."While it's not unusual for small businesses to grapple with working capital issues, the dust was still settling from the Great Recession. Abrams and Hodgson couldn't secure a line of credit or use financing tools like factoring to solve their problem. The two entrepreneurs were forced to close Nourish in 2012, but along the way they recognized a disconnect in the system. "Why are we the ones borrowing money, when in fact we're the lender here because every time you send an invoice to a customer, you've essentially extended a free loan to that customer by letting them pay later," Hodgson said. "And the only reason why we were going to need to possibly borrow money was because we had just given ours away for free to Whole Foods," she added.Check out the 7-page deck that Now, Stacey Abrams' fintech that wants to help small businesses 'grow fearlessly', used to raise $29 millionInsurance goes digital Jamie Hale, CEO and cofounder of Ladder. Ladder Fintechs looking to transform how insurance policies are underwritten, issued, and experienced by customers have grown as new technology driven by digital trends and artificial intelligence shape the market. And while verticals like auto, homeowner's, and renter's insurance have seen their fair share of innovation from forward-thinking fintechs, one company has taken on the massive life-insurance market. Founded in 2017, Ladder uses a tech-driven approach to offer life insurance with a digital, end-to-end service that it says is more flexible, faster, and cost-effective than incumbent players.Life, annuity, and accident and health insurance within the US comprise a big chunk of the broader market. In 2020, premiums written on those policies totaled some $767 billion, compared to $144 billion for auto policies and $97 billion for homeowner's insurance.Here's the 12-page deck that Ladder, a startup disrupting the 'crown jewel' of the insurance market, used to nab $100 millionEmbedded payments for SMBs The Highnote team. Highnote Branded cards have long been a way for merchants with the appropriate bank relationships to create additional revenue and build customer loyalty. The rise of embedded payments, or the ability to shop and pay in a seamless experience within a single app, has broadened the number of companies looking to launch branded cards.Highnote is a startup that helps small to mid-sized merchants roll out their own debit and pre-paid digital cards. The fintech emerged from stealth on Tuesday to announce it raised $54 million in seed and Series A funding.Here's the 12-page deck Highnote, a startup helping SMBs embed payments, used to raise $54 million in seed and Series A fundingAn alternative auto lender Daniel Chu, CEO and founder of Tricolor. Tricolor An alternative auto lender that caters to thin- and no-credit Hispanic borrowers is planning a national expansion after scoring a $90 million investment from BlackRock-managed funds. Tricolor is a Dallas-based auto lender that is a community development financial institution. It uses a proprietary artificial-intelligence engine that decisions each customer based on more than 100 data points, such as proof of income. Half of Tricolor's customers have a FICO score, and less than 12% have scores above 650, yet the average customer has lived in the US for 15 years, according to the deck.A 2017 survey by the Federal Deposit Insurance Corporation found 31.5% of Hispanic households had no mainstream credit compared to 14.4% of white households. "For decades, the deck has been stacked against low income or credit invisible Hispanics in the United States when it comes to the purchase and financing of a used vehicle," Daniel Chu, founder and CEO of Tricolor, said in a statement announcing the raise.An auto lender that caters to underbanked Hispanics used this 25-page deck to raise $90 million from BlackRock investorsA new way to access credit The TomoCredit team. TomoCredit Kristy Kim knows first-hand the challenge of obtaining credit in the US without an established credit history. Kim, who came to the US from South Korea, couldn't initially get access to credit despite having a job in investment banking after graduating college. "I was in my early twenties, I had a good income, my job was in investment banking but I could not get approved for anything," Kim told Insider. "Many young professionals like me, we deserve an opportunity to be considered but just because we didn't have a Fico, we weren't given a chance to even apply," she added.Kim started TomoCredit in 2018 to help others like herself gain access to consumer credit. TomoCredit spent three years building an internal algorithm to underwrite customers based on cash flow, rather than a credit score.TomoCredit, a fintech that lends to thin- and no-credit borrowers, used this 17-page pitch deck to raise its $10 million Series AAn IRA for alternatives Henry Yoshida is the co-founder and CEO of retirement fintech startup Rocket Dollar. Rocket Dollar Fintech startup Rocket Dollar, which helps users invest their individual retirement account (IRA) dollars into alternative assets, just raised $8 million for its Series A round, the company announced on Thursday.Park West Asset Management led the round, with participation from investors including Hyphen Capital, which focuses on backing Asian American entrepreneurs, and crypto exchange Kraken's venture arm. Co-founded in 2018 by CEO Henry Yoshida, CTO Rick Dude, and VP of marketing Thomas Young, Rocket Dollar now has over $350 million in assets under management on its platform. Yoshida sold his first startup, a roboadvisor called Honest Dollar, to Goldman Sachs' investment management division for an estimated $20 million.Yoshida told Insider that while ultra-high net worth investors have been investing self-directed retirement account dollars into alternative assets like real estate, private equity, and cryptocurrency, average investors have not historically been able to access the same opportunities to invest IRA dollars in alternative assets through traditional platforms.Here's the 34-page pitch deck a fintech that helps users invest their retirement savings in crypto and real estate assets used to nab $8 millionConnecting startups and investors Hum Capital cofounder and CEO Blair Silverberg. Hum Capital Blair Silverberg is no stranger to fundraising.For six years, Silverberg was a venture capitalist at Draper Fisher Jurvetson and Private Credit Investments making bets on startups."I was meeting with thousands of founders in person each year, watching them one at a time go through this friction where they're meeting a ton of investors, and the investors are all asking the same questions," Silverberg told Insider. He switched gears about three years ago, moving to the opposite side of the metaphorical table, to start Hum Capital, which uses artificial intelligence to match investors with startups looking to fundraise.On August 31, the New York-based fintech announced its $9 million Series A. The round was led by Future Ventures with participation from Webb Investment Network, Wavemaker Partners, and Partech. This 11-page pitch deck helped Hum Capital, a fintech using AI to match investors with startups, raise a $9 million Series A.Payments infrastructure for fintechs Qolo CEO and co-founder Patricia Montesi. Qolo Three years ago, Patricia Montesi realized there was a disconnect in the payments world. "A lot of new economy companies or fintech companies were looking to mesh up a lot of payment modalities that they weren't able to," Montesi, CEO and co-founder of Qolo, told Insider.Integrating various payment capabilities often meant tapping several different providers that had specializations in one product or service, she added, like debit card issuance or cross-border payments. "The way people were getting around that was that they were creating this spider web of fintech," she said, adding that "at the end of it all, they had this mess of suppliers and integrations and bank accounts."The 20-year payments veteran rounded up a group of three other co-founders - who together had more than a century of combined industry experience - to start Qolo, a business-to-business fintech that sought out to bundle back-end payment rails for other fintechs.Here's the 11-slide pitch deck a startup that provides payments infrastructure for other fintechs used to raise a $15 million Series ASoftware for managing freelancers Worksome cofounder and CEO Morten Petersen. Worksome The way people work has fundamentally changed over the past year, with more flexibility and many workers opting to freelance to maintain their work-from-home lifestyles.But managing a freelance or contractor workforce is often an administrative headache for employers. Worksome is a startup looking to eliminate all the extra work required for employers to adapt to more flexible working norms.Worksome started as a freelancer marketplace automating the process of matching qualified workers with the right jobs. But the team ultimately pivoted to a full suite of workforce management software, automating administrative burdens required to hire, pay, and account for contract workers.In May, Worksome closed a $13 million Series A backed by European angel investor Tommy Ahlers and Danish firm Lind & Risør.Here's the 21-slide pitch deck used by a startup that helps firms like Carlsberg and Deloitte manage freelancersPersonal finance is only a text away Yinon Ravid, the chief executive and cofounder of Albert. Albert The COVID-19 pandemic has underscored the growing preference of mobile banking as customers get comfortable managing their finances online.The financial app Albert has seen a similar jump in activity. Currently counting more than six million members, deposits in Albert's savings offering doubled from the start of the pandemic in March 2020 to May of this year, from $350 million to $700 million, according to new numbers released by the company. Founded in 2015, Albert offers automated budgeting and savings tools alongside guided investment portfolios. It's looked to differentiate itself through personalized features, like the ability for customers to text human financial experts.Budgeting and saving features are free on Albert. But for more tailored financial advice, customers pay a subscription fee that's a pay-what-you-can model, between $4 and $14 a month. And Albert's now banking on a new tool to bring together its investing, savings, and budgeting tools.Fintech Albert used this 10-page pitch deck to raise a $100 million Series C from General Atlantic and CapitalGRethinking debt collection Jason Saltzman, founder and CEO of Relief Relief For lenders, debt collection is largely automated. But for people who owe money on their credit cards, it can be a confusing and stressful process. Relief is looking to change that. Its app automates the credit-card debt collection process for users, negotiating with lenders and collectors to settle outstanding balances on their behalf. The fintech just launched and closed a $2 million seed round led by Collaborative Ventures. Relief's fundraising experience was a bit different to most. Its pitch deck, which it shared with one investor via Google Slides, went viral. It set out to raise a $1 million seed round, but ended up doubling that and giving some investors money back to make room for others.Check out a 15-page pitch deck that went viral and helped a credit-card debt collection startup land a $2 million seed roundBlockchain for private-markets investing Carlos Domingo is cofounder and CEO of Securitize. Securitize Securitize, founded in 2017 by the tech industry veterans Carlos Domingo and Jamie Finn, is bringing blockchain technology to private-markets investing. The company raised $48 million in Series B funding on June 21 from investors including Morgan Stanley and Blockchain Capital.Securitize helps companies crowdfund capital from individual and institutional investors by issuing their shares in the form of blockchain tokens that allow for more efficient settlement, record keeping, and compliance processes. Morgan Stanley's Tactical Value fund, which invests in private companies, made its first blockchain-technology investment when it coled the Series B, Securitize CEO Carlos Domingo told Insider.Here's the 11-page pitch deck a blockchain startup looking to revolutionize private-markets investing used to nab $48 million from investors like Morgan StanleyE-commerce focused business banking Michael Rangel, cofounder and CEO, and Tyler McIntyre, cofounder and CTO of Novo. Kristelle Boulos Photography Business banking is a hot market in fintech. And it seems investors can't get enough.Novo, the digital banking fintech aimed at small e-commerce businesses, raised a $40.7 million Series A led by Valar Ventures in June. Since its launch in 2018, Novo has signed up 100,000 small businesses. Beyond bank accounts, it offers expense management, a corporate card, and integrates with e-commerce infrastructure players like Shopify, Stripe, and Wise.Founded in 2018, Novo was based in New York City, but has since moved its headquarters to Miami. Here's the 12-page pitch deck e-commerce banking startup Novo used to raise its $40 million Series ABlockchain-based credit score tech John Sun, Anna Fridman, and Adam Jiwan are the cofounders of fintech startup Spring Labs. Spring Labs A blockchain-based fintech startup that is aiming to disrupt the traditional model of evaluating peoples' creditworthiness recently raised $30 million in a Series B funding led by credit reporting giant TransUnion.Four-year-old Spring Labs aims to create a private, secure data-sharing model to help credit agencies better predict the creditworthiness of people who are not in the traditional credit bureau system. The founding team of three fintech veterans met as early employees of lending startup Avant.Existing investors GreatPoint Ventures and August Capital also joined in on the most recent round. So far Spring Labs has raised $53 million from institutional rounds.TransUnion, a publicly-traded company with a $20 billion-plus market cap, is one of the three largest consumer credit agencies in the US. After 18 months of dialogue and six months of due diligence, TransAmerica and Spring Labs inked a deal, Spring Labs CEO and cofounder Adam Jiwan told Insider.Here's the 10-page pitch deck blockchain-based fintech Spring Labs used to snag $30 million from investors including credit reporting giant TransUnionDigital banking for freelancers JGalione/Getty Images Lance is a new digital bank hoping to simplify the life of those workers by offering what it calls an "active" approach to business banking. "We found that every time we sat down with the existing tools and resources of our accountants and QuickBooks and spreadsheets, we just ended up getting tangled up in the whole experience of it," Lance cofounder and CEO Oona Rokyta told Insider. Lance offers subaccounts for personal salaries, withholdings, and savings to which freelancers can automatically allocate funds according to custom preset levels. It also offers an expense balance that's connected to automated tax withholdings.In May, Lance announced the closing of a $2.8 million seed round that saw participation from Barclays, BDMI, Great Oaks Capital, Imagination Capital, Techstars, DFJ Frontier, and others.Here's the 21-page pitch deck Lance, a digital bank for freelancers, used to raise a $2.8 million seed round from investors including BarclaysDigital tools for independent financial advisors Jason Wenk, founder and CEO of Altruist Altruist Jason Wenk started his career at Morgan Stanley in investment research over 20 years ago. Now, he's running a company that is hoping to broaden access to financial advice for less-wealthy individuals. The startup raised $50 million in Series B funding led by Insight Partners with participation from investors Vanguard and Venrock. The round brings the Los Angeles-based startup's total funding to just under $67 million.Founded in 2018, Altruist is a digital brokerage built for independent financial advisors, intended to be an "all-in-one" platform that unites custodial functions, portfolio accounting, and a client-facing portal. It allows advisors to open accounts, invest, build models, report, trade (including fractional shares), and bill clients through an interface that can advisors time by eliminating mundane operational tasks.Altruist aims to make personalized financial advice less expensive, more efficient, and more inclusive through the platform, which is designed for registered investment advisors (RIAs), a growing segment of the wealth management industry. Here's the pitch deck for Altruist, a wealth tech challenging custodians Fidelity and Charles Schwab, that raised $50 million from Vanguard and InsightPayments and operations support HoneyBook cofounders Dror Shimoni, Oz Alon, and Naama Alon. HoneyBook While countless small businesses have been harmed by the pandemic, self-employment and entrepreneurship have found ways to blossom as Americans started new ventures.Half of the US population may be freelance by 2027, according to a study commissioned by remote-work hiring platform Upwork. HoneyBook, a fintech startup that provides payment and operations support for freelancers, in May raised $155 million in funding and achieved unicorn status with its $1 billion-plus valuation.Durable Capital Partners led the Series D funding with other new investors including renowned hedge fund Tiger Global, Battery Ventures, Zeev Ventures, and 01 Advisors. Citi Ventures, Citigroup's startup investment arm that also backs fintech robo-advisor Betterment, participated as an existing investor in the round alongside Norwest Venture partners. The latest round brings the company's fundraising total to $227 million to date.Here's the 21-page pitch deck a Citi-backed fintech for freelancers used to raise $155 million from investors like hedge fund Tiger GlobalFraud prevention for lenders and insurers Fiordaliso/Getty Images Onboarding new customers with ease is key for any financial institution or retailer. The more friction you add, the more likely consumers are to abandon the entire process.But preventing fraud is also a priority, and that's where Neuro-ID comes in. The startup analyzes what it calls "digital body language," or, the way users scroll, type, and tap. Using that data, Neuro-ID can identify fraudulent users before they create an account. It's built for banks, lenders, insurers, and e-commerce players."The train has left the station for digital transformation, but there's a massive opportunity to try to replicate all those communications that we used to have when we did business in-person, all those tells that we would get verbally and non-verbally on whether or not someone was trustworthy," Neuro-ID CEO Jack Alton told Insider.Founded in 2014, the startup's pitch is twofold: Neuro-ID can save companies money by identifying fraud early, and help increase user conversion by making the onboarding process more seamless. In December Neuro-ID closed a $7 million Series A, co-led by Fin VC and TTV Capital, with participation from Canapi Ventures. With 30 employees, Neuro-ID is using the fresh funding to grow its team and create additional tools to be more self-serving for customers.Here's the 11-slide pitch deck a startup that analyzes consumers' digital behavior to fight fraud used to raise a $7 million Series AAI-powered tools to spot phony online reviews Saoud Khalifah, founder and CEO of Fakespot. Fakespot Marketplaces like Amazon and eBay host millions of third-party sellers, and their algorithms will often boost items in search based on consumer sentiment, which is largely based on reviews. But many third-party sellers use fake reviews often bought from click farms to boost their items, some of which are counterfeit or misrepresented to consumers.That's where Fakespot comes in. With its Chrome extension, it warns users of sellers using potentially fake reviews to boost sales and can identify fraudulent sellers. Fakespot is currently compatible with Amazon, BestBuy, eBay, Sephora, Steam, and Walmart."There are promotional reviews written by humans and bot-generated reviews written by robots or review farms," Fakespot founder and CEO Saoud Khalifah told Insider. "Our AI system has been built to detect both categories with very high accuracy."Fakespot's AI learns via reviews data available on marketplace websites, and uses natural-language processing to identify if reviews are genuine. Fakespot also looks at things like whether the number of positive reviews are plausible given how long a seller has been active.Fakespot, a startup that helps shoppers detect robot-generated reviews and phony sellers on Amazon and Shopify, used this pitch deck to nab a $4 million Series ANew twists on digital banking Zach Bruhnke, cofounder and CEO of HMBradley HMBradley Consumers are getting used to the idea of branch-less banking, a trend that startup digital-only banks like Chime, N26, and Varo have benefited from. The majority of these fintechs target those who are underbanked, and rely on usage of their debit cards to make money off interchange. But fellow startup HMBradley has a different business model. "Our thesis going in was that we don't swipe our debit cards all that often, and we don't think the customer base that we're focusing on does either," Zach Bruhnke, cofounder and CEO of HMBradley, told Insider. "A lot of our customer base uses credit cards on a daily basis."Instead, the startup is aiming to build clientele with stable deposits. As a result, the bank is offering interest-rate tiers depending on how much a customer saves of their direct deposit.Notably, the rate tiers are dependent on the percentage of savings, not the net amount. "We'll pay you more when you save more of what comes in," Bruhnke said. "We didn't want to segment customers by how much money they had. So it was always going to be about a percentage of income. That was really important to us."Check out the 14-page pitch deck fintech HMBradley, a neobank offering interest rates as high as 3%, used to raise an $18.25 million Series ARead the original article on Business Insider.....»»

Category: topSource: businessinsiderNov 3rd, 2021

Check out 24 pitch decks that fintechs looking to disrupt trading, banking, and lending used to raise millions

Looking for examples of real fintech pitch decks? Check out pitch decks that Qolo, Lance, and other startups used to raise money from VCs. Check out these pitch decks for examples of fintech founders sold their vision. Yulia Reznikov/Getty Images Insider has been tracking the next wave of hot new startups that are blending finance and tech. Check out these pitch decks to see how fintech founders sold their vision. See more stories on Insider's business page. Fintech VC funding hit a fresh quarterly record of $22.8 billion in the first three months of 2021, according to CB Insights data. While mega-rounds helped propel overall funding, new cash was spread across 614 deals. Insider has been tracking the next wave of hot new startups that are blending finance and tech. Check out these pitch decks to see how fintech founders are selling their vision and nabbing big bucks in the process. You'll see new financial tech geared at freelancers, fresh twists on digital banking, and innovation aimed at streamlining customer onboarding. Checkout made easy Bolt's Ryan Breslow. Ryan Breslow Amazon has long dominated e-commerce with its one-click checkout flows, offering easier ways for consumers to shop online than its small-business competitors.Bolt gives small merchants tools to offer the same easy checkouts so they can compete with the likes of Amazon.The startup raised its $393 million Series D to continue adding its one-click checkout feature to merchants' own websites in October.Bolt markets to merchants themselves. But a big part of Bolt's pitch is its growing network of consumers - currently over 5.6 million - that use its features across multiple Bolt merchant customers. Roughly 5% of Bolt's transactions were network-driven in May, meaning users that signed up for a Bolt account on another retailer's website used it elsewhere. The network effects were even more pronounced in verticals like furniture, where 49% of transactions were driven by the Bolt network."The network effect is now unleashed with Bolt in full fury, and that triggered the raise," Bolt's founder and CEO Ryan Breslow told Insider.Here's the 12-page deck that one-click checkout Bolt used to outline its network of 5.6 million consumers and raise its Series DHelping small banks lend CollateralEdge's Joel Radtke, cofounder, COO, and president, and Joe Beard, cofounder and CEO. CollateralEdge For large corporations with a track record of tapping the credit markets, taking out debt is a well-structured and clear process handled by the nation's biggest investment banks and teams of accountants. But smaller, middle-market companies - typically those with annual revenues ranging up to $1 billion - are typically served by regional and community banks that don't always have the capacity to adequately measure the risk of loans or price them competitively. Per the National Center for the Middle Market, 200,000 companies fall into this range, accounting for roughly 33% of US private sector GDP and employment.Dallas-based fintech CollateralEdge works with these banks - typically those with between $1 billion and $50 billion in assets - to help analyze and price slices of commercial and industrial loans that previously might have gone unserved by smaller lenders.On October 20th, CollateralEdge announced a $3.5 million seed round led by Dallas venture fund Perot Jain with participation from Kneeland Youngblood (a founder of the healthcare-focused private-equity firm Pharos Capital) and other individual investors.Here's the 10-page deck CollateralEdge, a fintech streamlining how small banks lend to businesses, used to raise a $3.5 million seed round Quantum computing made easy QC Ware CEO Matt Johnson. QC Ware Even though banks and hedge funds are still several years out from adding quantum computing to their tech arsenals, that hasn't stopped Wall Street giants from investing time and money into the emerging technology class. And momentum for QC Ware, a startup looking to cut the time and resources it takes to use quantum computing, is accelerating. The fintech secured a $25 million Series B on September 29 co-led by Koch Disruptive Technologies and Covestro with participation from D.E. Shaw, Citi, and Samsung Ventures.QC Ware, founded in 2014, builds quantum algorithms for the likes of Goldman Sachs (which led the fintech's Series A), Airbus, and BMW Group. The algorithms, which are effectively code bases that include quantum processing elements, can run on any of the four main public-cloud providers.Quantum computing allows companies to do complex calculations faster than traditional computers by using a form of physics that runs on quantum bits as opposed to the traditional 1s and 0s that computers use. This is especially helpful in banking for risk analytics or algorithmic trading, where executing calculations milliseconds faster than the competition can give firms a leg up. Here's the 20-page deck QC Ware, a fintech making quantum computing more accessible, used to raised its $25 million Series BSimplifying quant models Kirat Singh and Mark Higgins, Beacon's cofounders. Beacon A fintech that helps financial institutions use quantitative models to streamline their businesses and improve risk management is catching the attention, and capital, of some of the country's biggest investment managers.Beacon Platform, founded in 2014, is a fintech that builds applications and tools to help banks, asset managers, and trading firms quickly integrate quantitative models that can help with analyzing risk, ensuring compliance, and improving operational efficiency. The company raised its Series C on Wednesday, scoring a $56 million investment led by Warburg Pincus with support from Blackstone Innovations Investments, PIMCO, and Global Atlantic. Blackstone, PIMCO, and Global Atlantic are also users of Beacon's tech, as are the Commonwealth Bank of Australia and Shell New Energies, a division of Royal Dutch Shell, among others.The fintech provides a shortcut for firms looking to use quantitative modelling and data science across various aspects of their businesses, a process that can often take considerable resources if done solo.Here's the 20-page pitch deck Beacon, a fintech helping Wall Street better analyze risk and data, used to raise $56 million from Warburg Pincus, Blackstone, and PIMCOInvoice financing for SMBs Stacey Abrams and Lara Hodgson, Now cofounders. Now About a decade ago, politician Stacey Abrams and entrepreneur Lara Hodgson were forced to fold their startup because of a kink in the supply chain - but not in the traditional sense.Nourish, which made spill-proof bottled water for children, had grown quickly from selling to small retailers to national ones. And while that may sound like a feather in the small business' cap, there was a hang-up."It was taking longer and longer to get paid, and as you can imagine, you deliver the product and then you wait and you wait, but meanwhile you have to pay your employees and you have to pay your vendors," Hodgson told Insider. "Waiting to get paid was constraining our ability to grow."While it's not unusual for small businesses to grapple with working capital issues, the dust was still settling from the Great Recession. Abrams and Hodgson couldn't secure a line of credit or use financing tools like factoring to solve their problem. The two entrepreneurs were forced to close Nourish in 2012, but along the way they recognized a disconnect in the system. "Why are we the ones borrowing money, when in fact we're the lender here because every time you send an invoice to a customer, you've essentially extended a free loan to that customer by letting them pay later," Hodgson said. "And the only reason why we were going to need to possibly borrow money was because we had just given ours away for free to Whole Foods," she added.Check out the 7-page deck that Now, Stacey Abrams' fintech that wants to help small businesses 'grow fearlessly', used to raise $29 millionInsurance goes digital Jamie Hale, CEO and cofounder of Ladder. Ladder Fintechs looking to transform how insurance policies are underwritten, issued, and experienced by customers have grown as new technology driven by digital trends and artificial intelligence shape the market. And while verticals like auto, homeowner's, and renter's insurance have seen their fair share of innovation from forward-thinking fintechs, one company has taken on the massive life-insurance market. Founded in 2017, Ladder uses a tech-driven approach to offer life insurance with a digital, end-to-end service that it says is more flexible, faster, and cost-effective than incumbent players.Life, annuity, and accident and health insurance within the US comprise a big chunk of the broader market. In 2020, premiums written on those policies totaled some $767 billion, compared to $144 billion for auto policies and $97 billion for homeowner's insurance.Here's the 12-page deck that Ladder, a startup disrupting the 'crown jewel' of the insurance market, used to nab $100 millionEmbedded payments for SMBs The Highnote team. Highnote Branded cards have long been a way for merchants with the appropriate bank relationships to create additional revenue and build customer loyalty. The rise of embedded payments, or the ability to shop and pay in a seamless experience within a single app, has broadened the number of companies looking to launch branded cards.Highnote is a startup that helps small to mid-sized merchants roll out their own debit and pre-paid digital cards. The fintech emerged from stealth on Tuesday to announce it raised $54 million in seed and Series A funding.Here's the 12-page deck Highnote, a startup helping SMBs embed payments, used to raise $54 million in seed and Series A fundingAn alternative auto lender Daniel Chu, CEO and founder of Tricolor. Tricolor An alternative auto lender that caters to thin- and no-credit Hispanic borrowers is planning a national expansion after scoring a $90 million investment from BlackRock-managed funds. Tricolor is a Dallas-based auto lender that is a community development financial institution. It uses a proprietary artificial-intelligence engine that decisions each customer based on more than 100 data points, such as proof of income. Half of Tricolor's customers have a FICO score, and less than 12% have scores above 650, yet the average customer has lived in the US for 15 years, according to the deck.A 2017 survey by the Federal Deposit Insurance Corporation found 31.5% of Hispanic households had no mainstream credit compared to 14.4% of white households. "For decades, the deck has been stacked against low income or credit invisible Hispanics in the United States when it comes to the purchase and financing of a used vehicle," Daniel Chu, founder and CEO of Tricolor, said in a statement announcing the raise.An auto lender that caters to underbanked Hispanics used this 25-page deck to raise $90 million from BlackRock investorsA new way to access credit The TomoCredit team. TomoCredit Kristy Kim knows first-hand the challenge of obtaining credit in the US without an established credit history. Kim, who came to the US from South Korea, couldn't initially get access to credit despite having a job in investment banking after graduating college. "I was in my early twenties, I had a good income, my job was in investment banking but I could not get approved for anything," Kim told Insider. "Many young professionals like me, we deserve an opportunity to be considered but just because we didn't have a Fico, we weren't given a chance to even apply," she added.Kim started TomoCredit in 2018 to help others like herself gain access to consumer credit. TomoCredit spent three years building an internal algorithm to underwrite customers based on cash flow, rather than a credit score.TomoCredit, a fintech that lends to thin- and no-credit borrowers, used this 17-page pitch deck to raise its $10 million Series AAn IRA for alternatives Henry Yoshida is the co-founder and CEO of retirement fintech startup Rocket Dollar. Rocket Dollar Fintech startup Rocket Dollar, which helps users invest their individual retirement account (IRA) dollars into alternative assets, just raised $8 million for its Series A round, the company announced on Thursday.Park West Asset Management led the round, with participation from investors including Hyphen Capital, which focuses on backing Asian American entrepreneurs, and crypto exchange Kraken's venture arm. Co-founded in 2018 by CEO Henry Yoshida, CTO Rick Dude, and VP of marketing Thomas Young, Rocket Dollar now has over $350 million in assets under management on its platform. Yoshida sold his first startup, a roboadvisor called Honest Dollar, to Goldman Sachs' investment management division for an estimated $20 million.Yoshida told Insider that while ultra-high net worth investors have been investing self-directed retirement account dollars into alternative assets like real estate, private equity, and cryptocurrency, average investors have not historically been able to access the same opportunities to invest IRA dollars in alternative assets through traditional platforms.Here's the 34-page pitch deck a fintech that helps users invest their retirement savings in crypto and real estate assets used to nab $8 millionConnecting startups and investors Hum Capital cofounder and CEO Blair Silverberg. Hum Capital Blair Silverberg is no stranger to fundraising.For six years, Silverberg was a venture capitalist at Draper Fisher Jurvetson and Private Credit Investments making bets on startups."I was meeting with thousands of founders in person each year, watching them one at a time go through this friction where they're meeting a ton of investors, and the investors are all asking the same questions," Silverberg told Insider. He switched gears about three years ago, moving to the opposite side of the metaphorical table, to start Hum Capital, which uses artificial intelligence to match investors with startups looking to fundraise.On August 31, the New York-based fintech announced its $9 million Series A. The round was led by Future Ventures with participation from Webb Investment Network, Wavemaker Partners, and Partech. This 11-page pitch deck helped Hum Capital, a fintech using AI to match investors with startups, raise a $9 million Series A.Payments infrastructure for fintechs Qolo CEO and co-founder Patricia Montesi. Qolo Three years ago, Patricia Montesi realized there was a disconnect in the payments world. "A lot of new economy companies or fintech companies were looking to mesh up a lot of payment modalities that they weren't able to," Montesi, CEO and co-founder of Qolo, told Insider.Integrating various payment capabilities often meant tapping several different providers that had specializations in one product or service, she added, like debit card issuance or cross-border payments. "The way people were getting around that was that they were creating this spider web of fintech," she said, adding that "at the end of it all, they had this mess of suppliers and integrations and bank accounts."The 20-year payments veteran rounded up a group of three other co-founders - who together had more than a century of combined industry experience - to start Qolo, a business-to-business fintech that sought out to bundle back-end payment rails for other fintechs.Here's the 11-slide pitch deck a startup that provides payments infrastructure for other fintechs used to raise a $15 million Series ASoftware for managing freelancers Worksome cofounder and CEO Morten Petersen. Worksome The way people work has fundamentally changed over the past year, with more flexibility and many workers opting to freelance to maintain their work-from-home lifestyles.But managing a freelance or contractor workforce is often an administrative headache for employers. Worksome is a startup looking to eliminate all the extra work required for employers to adapt to more flexible working norms.Worksome started as a freelancer marketplace automating the process of matching qualified workers with the right jobs. But the team ultimately pivoted to a full suite of workforce management software, automating administrative burdens required to hire, pay, and account for contract workers.In May, Worksome closed a $13 million Series A backed by European angel investor Tommy Ahlers and Danish firm Lind & Risør.Here's the 21-slide pitch deck used by a startup that helps firms like Carlsberg and Deloitte manage freelancersPersonal finance is only a text away Yinon Ravid, the chief executive and cofounder of Albert. Albert The COVID-19 pandemic has underscored the growing preference of mobile banking as customers get comfortable managing their finances online.The financial app Albert has seen a similar jump in activity. Currently counting more than six million members, deposits in Albert's savings offering doubled from the start of the pandemic in March 2020 to May of this year, from $350 million to $700 million, according to new numbers released by the company. Founded in 2015, Albert offers automated budgeting and savings tools alongside guided investment portfolios. It's looked to differentiate itself through personalized features, like the ability for customers to text human financial experts.Budgeting and saving features are free on Albert. But for more tailored financial advice, customers pay a subscription fee that's a pay-what-you-can model, between $4 and $14 a month. And Albert's now banking on a new tool to bring together its investing, savings, and budgeting tools.Fintech Albert used this 10-page pitch deck to raise a $100 million Series C from General Atlantic and CapitalGRethinking debt collection Jason Saltzman, founder and CEO of Relief Relief For lenders, debt collection is largely automated. But for people who owe money on their credit cards, it can be a confusing and stressful process. Relief is looking to change that. Its app automates the credit-card debt collection process for users, negotiating with lenders and collectors to settle outstanding balances on their behalf. The fintech just launched and closed a $2 million seed round led by Collaborative Ventures. Relief's fundraising experience was a bit different to most. Its pitch deck, which it shared with one investor via Google Slides, went viral. It set out to raise a $1 million seed round, but ended up doubling that and giving some investors money back to make room for others.Check out a 15-page pitch deck that went viral and helped a credit-card debt collection startup land a $2 million seed roundBlockchain for private-markets investing Carlos Domingo is cofounder and CEO of Securitize. Securitize Securitize, founded in 2017 by the tech industry veterans Carlos Domingo and Jamie Finn, is bringing blockchain technology to private-markets investing. The company raised $48 million in Series B funding on June 21 from investors including Morgan Stanley and Blockchain Capital.Securitize helps companies crowdfund capital from individual and institutional investors by issuing their shares in the form of blockchain tokens that allow for more efficient settlement, record keeping, and compliance processes. Morgan Stanley's Tactical Value fund, which invests in private companies, made its first blockchain-technology investment when it coled the Series B, Securitize CEO Carlos Domingo told Insider.Here's the 11-page pitch deck a blockchain startup looking to revolutionize private-markets investing used to nab $48 million from investors like Morgan StanleyE-commerce focused business banking Michael Rangel, cofounder and CEO, and Tyler McIntyre, cofounder and CTO of Novo. Kristelle Boulos Photography Business banking is a hot market in fintech. And it seems investors can't get enough.Novo, the digital banking fintech aimed at small e-commerce businesses, raised a $40.7 million Series A led by Valar Ventures in June. Since its launch in 2018, Novo has signed up 100,000 small businesses. Beyond bank accounts, it offers expense management, a corporate card, and integrates with e-commerce infrastructure players like Shopify, Stripe, and Wise.Founded in 2018, Novo was based in New York City, but has since moved its headquarters to Miami. Here's the 12-page pitch deck e-commerce banking startup Novo used to raise its $40 million Series ABlockchain-based credit score tech John Sun, Anna Fridman, and Adam Jiwan are the cofounders of fintech startup Spring Labs. Spring Labs A blockchain-based fintech startup that is aiming to disrupt the traditional model of evaluating peoples' creditworthiness recently raised $30 million in a Series B funding led by credit reporting giant TransUnion.Four-year-old Spring Labs aims to create a private, secure data-sharing model to help credit agencies better predict the creditworthiness of people who are not in the traditional credit bureau system. The founding team of three fintech veterans met as early employees of lending startup Avant.Existing investors GreatPoint Ventures and August Capital also joined in on the most recent round. So far Spring Labs has raised $53 million from institutional rounds.TransUnion, a publicly-traded company with a $20 billion-plus market cap, is one of the three largest consumer credit agencies in the US. After 18 months of dialogue and six months of due diligence, TransAmerica and Spring Labs inked a deal, Spring Labs CEO and cofounder Adam Jiwan told Insider.Here's the 10-page pitch deck blockchain-based fintech Spring Labs used to snag $30 million from investors including credit reporting giant TransUnionDigital banking for freelancers JGalione/Getty Images Lance is a new digital bank hoping to simplify the life of those workers by offering what it calls an "active" approach to business banking. "We found that every time we sat down with the existing tools and resources of our accountants and QuickBooks and spreadsheets, we just ended up getting tangled up in the whole experience of it," Lance cofounder and CEO Oona Rokyta told Insider. Lance offers subaccounts for personal salaries, withholdings, and savings to which freelancers can automatically allocate funds according to custom preset levels. It also offers an expense balance that's connected to automated tax withholdings.In May, Lance announced the closing of a $2.8 million seed round that saw participation from Barclays, BDMI, Great Oaks Capital, Imagination Capital, Techstars, DFJ Frontier, and others.Here's the 21-page pitch deck Lance, a digital bank for freelancers, used to raise a $2.8 million seed round from investors including BarclaysDigital tools for independent financial advisors Jason Wenk, founder and CEO of Altruist Altruist Jason Wenk started his career at Morgan Stanley in investment research over 20 years ago. Now, he's running a company that is hoping to broaden access to financial advice for less-wealthy individuals. The startup raised $50 million in Series B funding led by Insight Partners with participation from investors Vanguard and Venrock. The round brings the Los Angeles-based startup's total funding to just under $67 million.Founded in 2018, Altruist is a digital brokerage built for independent financial advisors, intended to be an "all-in-one" platform that unites custodial functions, portfolio accounting, and a client-facing portal. It allows advisors to open accounts, invest, build models, report, trade (including fractional shares), and bill clients through an interface that can advisors time by eliminating mundane operational tasks.Altruist aims to make personalized financial advice less expensive, more efficient, and more inclusive through the platform, which is designed for registered investment advisors (RIAs), a growing segment of the wealth management industry. Here's the pitch deck for Altruist, a wealth tech challenging custodians Fidelity and Charles Schwab, that raised $50 million from Vanguard and InsightPayments and operations support HoneyBook cofounders Dror Shimoni, Oz Alon, and Naama Alon. HoneyBook While countless small businesses have been harmed by the pandemic, self-employment and entrepreneurship have found ways to blossom as Americans started new ventures.Half of the US population may be freelance by 2027, according to a study commissioned by remote-work hiring platform Upwork. HoneyBook, a fintech startup that provides payment and operations support for freelancers, in May raised $155 million in funding and achieved unicorn status with its $1 billion-plus valuation.Durable Capital Partners led the Series D funding with other new investors including renowned hedge fund Tiger Global, Battery Ventures, Zeev Ventures, and 01 Advisors. Citi Ventures, Citigroup's startup investment arm that also backs fintech robo-advisor Betterment, participated as an existing investor in the round alongside Norwest Venture partners. The latest round brings the company's fundraising total to $227 million to date.Here's the 21-page pitch deck a Citi-backed fintech for freelancers used to raise $155 million from investors like hedge fund Tiger GlobalFraud prevention for lenders and insurers Fiordaliso/Getty Images Onboarding new customers with ease is key for any financial institution or retailer. The more friction you add, the more likely consumers are to abandon the entire process.But preventing fraud is also a priority, and that's where Neuro-ID comes in. The startup analyzes what it calls "digital body language," or, the way users scroll, type, and tap. Using that data, Neuro-ID can identify fraudulent users before they create an account. It's built for banks, lenders, insurers, and e-commerce players."The train has left the station for digital transformation, but there's a massive opportunity to try to replicate all those communications that we used to have when we did business in-person, all those tells that we would get verbally and non-verbally on whether or not someone was trustworthy," Neuro-ID CEO Jack Alton told Insider.Founded in 2014, the startup's pitch is twofold: Neuro-ID can save companies money by identifying fraud early, and help increase user conversion by making the onboarding process more seamless. In December Neuro-ID closed a $7 million Series A, co-led by Fin VC and TTV Capital, with participation from Canapi Ventures. With 30 employees, Neuro-ID is using the fresh funding to grow its team and create additional tools to be more self-serving for customers.Here's the 11-slide pitch deck a startup that analyzes consumers' digital behavior to fight fraud used to raise a $7 million Series AAI-powered tools to spot phony online reviews Saoud Khalifah, founder and CEO of Fakespot. Fakespot Marketplaces like Amazon and eBay host millions of third-party sellers, and their algorithms will often boost items in search based on consumer sentiment, which is largely based on reviews. But many third-party sellers use fake reviews often bought from click farms to boost their items, some of which are counterfeit or misrepresented to consumers.That's where Fakespot comes in. With its Chrome extension, it warns users of sellers using potentially fake reviews to boost sales and can identify fraudulent sellers. Fakespot is currently compatible with Amazon, BestBuy, eBay, Sephora, Steam, and Walmart."There are promotional reviews written by humans and bot-generated reviews written by robots or review farms," Fakespot founder and CEO Saoud Khalifah told Insider. "Our AI system has been built to detect both categories with very high accuracy."Fakespot's AI learns via reviews data available on marketplace websites, and uses natural-language processing to identify if reviews are genuine. Fakespot also looks at things like whether the number of positive reviews are plausible given how long a seller has been active.Fakespot, a startup that helps shoppers detect robot-generated reviews and phony sellers on Amazon and Shopify, used this pitch deck to nab a $4 million Series ANew twists on digital banking Zach Bruhnke, cofounder and CEO of HMBradley HMBradley Consumers are getting used to the idea of branch-less banking, a trend that startup digital-only banks like Chime, N26, and Varo have benefited from. The majority of these fintechs target those who are underbanked, and rely on usage of their debit cards to make money off interchange. But fellow startup HMBradley has a different business model. "Our thesis going in was that we don't swipe our debit cards all that often, and we don't think the customer base that we're focusing on does either," Zach Bruhnke, cofounder and CEO of HMBradley, told Insider. "A lot of our customer base uses credit cards on a daily basis."Instead, the startup is aiming to build clientele with stable deposits. As a result, the bank is offering interest-rate tiers depending on how much a customer saves of their direct deposit.Notably, the rate tiers are dependent on the percentage of savings, not the net amount. "We'll pay you more when you save more of what comes in," Bruhnke said. "We didn't want to segment customers by how much money they had. So it was always going to be about a percentage of income. That was really important to us."Check out the 14-page pitch deck fintech HMBradley, a neobank offering interest rates as high as 3%, used to raise an $18.25 million Series ARead the original article on Business Insider.....»»

Category: smallbizSource: nytNov 1st, 2021

Celestica Announces Third Quarter 2021 Financial Results

(All amounts in U.S. dollars.Per share information based on dilutedshares outstanding unless otherwise noted.) TORONTO, Oct. 25, 2021 (GLOBE NEWSWIRE) -- Celestica Inc. (TSX:CLS) (NYSE:CLS), a leader in design, manufacturing and supply chain solutions for the world's most innovative companies, today announced financial results for the quarter ended September 30, 2021 (Q3 2021)†. "Celestica's strong third quarter performance reflects our consistent execution and the resiliency of our business, as we continue to successfully navigate challenges related to the pandemic and the global supply chain. Our non-IFRS operating margin* of 4.2% marks our seventh consecutive quarter of year-to-year improvement, and represents the highest operating margin in Celestica's history as a publicly-traded company," said Rob Mionis, President and CEO, Celestica. "Our performance in recent quarters serves as a validation of our long-term strategy and transformation actions in the face of a challenging and constantly evolving business environment." "The fourth quarter of 2021 serves as an important inflection point in our business, as our focus now turns squarely to growth and maintaining the momentum we've built in recent quarters. We remain on track to complete our acquisition of PCI in November. Achievement of our revenue guidance for the fourth quarter of 2021 will represent a return to top-line growth, and achievement of our non-IFRS operating margin* mid-point guidance of 4.5% will set a new high-water mark for our business. As we approach the final months of 2021, we believe we are well positioned to continue building on our success, and we reaffirm our strong outlook for 2022." Q3 2021 Highlights Revenue: $1.47 billion, decreased 5% compared to $1.55 billion for the third quarter of 2020 (Q3 2020); Revenue of our non-Cisco business** increased 6% compared to Q3 2020. Operating margin (non-IFRS)*: 4.2%, compared to 3.9% for Q3 2020. ATS segment revenue: increased 12% compared to Q3 2020; ATS segment margin was 4.3%, compared to 3.7% for Q3 2020. CCS segment revenue: decreased 14% compared to Q3 2020; CCS segment margin was 4.1%, compared to 4.0% for Q3 2020; Non-Cisco CCS revenue*** increased 2% compared to Q3 2020. Lifecycle Solutions portfolio revenue (combined ATS segment and HPS revenue): increased 15% compared to Q3 2020, and represented 60% of total revenue, compared to 50% of total revenue for Q3 2020. IFRS earnings per share (EPS): $0.28, compared to $0.24 per share for Q3 2020. Adjusted EPS (non-IFRS)*: $0.35, compared to $0.32 for Q3 2020. Adjusted return on invested capital (non-IFRS)*: 15.2%, flat compared to Q3 2020. Free cash flow (non-IFRS)*: $27.1 million, compared to $15.8 million for Q3 2020. Repurchased and cancelled 2.1 million subordinate voting shares for $17.2 million under our normal course issuer bid (NCIB). Q4 2021 Guidance Our fourth quarter of 2021 (Q4 2021) guidance assumes consummation of the acquisition of PCI Private Limited (PCI) (described below) in November 2021, and incorporates our estimated impact of supply chain constraints. IFRS revenue: $1.425 billion to $1.575 billion Operating margin (non-IFRS)*: 4.5% at the mid-point of our revenue and non-IFRS adjusted EPS guidance ranges Adjusted SG&A (non-IFRS)*: $62 million to $64 million Adjusted EPS (non-IFRS)*: $0.35 to $0.41 For Q4 2021, we expect a negative $0.11 to $0.17 per share (pre-tax) aggregate impact on net earnings on an IFRS basis for employee SBC expense, amortization of intangible assets (excluding computer software), and restructuring charges, and an non-IFRS adjusted effective tax rate of approximately 19% (which does not account for foreign exchange impacts or any unanticipated tax settlements). Full-Year 2021 Commentary We believe that 2021 is on track to be a successful year for Celestica, and one where we make meaningful progress towards the achievement of our long-term strategic objectives. Achievement of the mid-point of our guidance ranges for Q4 2021 (see above), would represent the following financial accomplishments for 2021: Adjusted EPS (non-IFRS)* of $1.24, compared to $0.98 for 2020, a growth rate of 27% Operating margin (non-IFRS)* of 4.0%, compared to 3.5% for 2020, an improvement of 50 basis points Non-Cisco business revenue** growth of 7% compared to 2020 Lifecycle Solutions portfolio revenue concentration of approximately 60%, compared to 51% for 2020 The foregoing commentary represents operating measures that would result if the mid-point of our Q4 2021 guidance ranges are achieved, and are not intended to be projections or forecasts of future performance. Our future performance is subject to risks, uncertainties and other factors that could cause actual outcomes and results to differ materially those described in this section. 2022 Outlook As we look to 2022, we expect the markets to remain dynamic. However, we believe that secular tailwinds in several of our end markets, strong operational performance and the ramping of new programs bode well for Celestica. Assuming the severity of supply chain constraints expected for the remainder of 2021 do not significantly worsen, and consummation of the PCI acquisition (see below) in November 2021, we anticipate the following for 2022: IFRS revenue to grow to at least $6.3 billion Operating margin (non-IFRS)* in the range of 4.0% to 5.0% Adjusted EPS (non-IFRS)* to increase by at least 20% compared to 2021 We do not provide reconciliations for forward-looking non-IFRS financial measures, as we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing or amount of various events that have not yet occurred, are out of our control and/or cannot be reasonably predicted, and that would impact the most directly comparable forward-looking IFRS financial measure. For these same reasons, we are unable to address the probable significance of the unavailable information. Forward-looking non-IFRS financial measures may vary materially from the corresponding IFRS financial measures. See Schedule 1 for the definitions of the foregoing non-IFRS financial measures, and a reconciliation of historical non-IFRS financial measures to the most directly comparable IFRS financial measures. Also see "Non-IFRS Supplementary Information" below. † Celestica has two operating and reportable segments - Advanced Technology Solutions (ATS) and Connectivity & Cloud Solutions (CCS). Our ATS segment consists of our ATS end market, and is comprised of our Aerospace and Defense (A&D), Industrial, Energy, HealthTech and Capital Equipment (semiconductor, display, and power & signal distribution equipment) businesses. Our CCS segment consists of our Communications and Enterprise (servers and storage) end markets. Segment performance is evaluated based on segment revenue, segment income and segment margin (segment income as a percentage of segment revenue). See note 26 to our 2020 audited consolidated financial statements, included in our Annual Report on Form 20-F for the year ended December 31, 2020 (2020 20-F), available at www.sec.gov and www.sedar.com, for further detail. * Non-International Financial Reporting Standards (IFRS) financial measures do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar financial measures presented by other public companies that use IFRS or U.S. generally accepted accounting principles (GAAP). See "Non-IFRS Supplementary Information" below for information on our rationale for the use of non-IFRS financial measures, and Schedule 1 for, among other items, non-IFRS financial measures included in this press release, as well as their definitions, uses, and a reconciliation of historical non-IFRS financial measures to the most directly comparable IFRS financial measures. We do not provide reconciliations for forward-looking non-IFRS financial measures, as we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. See the paragraph after "2022 Outlook." ** total revenue from programs with customers other than Cisco Systems, Inc. (Cisco). *** aggregate CCS segment revenue from programs with customers other than Cisco. Summary of Selected Q3 2021 Results For information on the impact of coronavirus disease 2019 and related mutations (COVID-19) on our business in Q3 2021, see "Segment Updates" below and footnote (1) to the following table. Also see the "Recent Developments" section of each of our Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) for Q3 2021, to be filed at www.sedar.com and www.sec.gov, and in Item 5 of our 2020 20-F.   Q3 2021 Actual (1)   Q3 2021 Guidance (2) IFRS revenue (in billions) $1.47   $1.40 to $1.55 IFRS EPS (1) $0.28   N/A IFRS earnings before income taxes as a % of revenue 3.0%   N/A Non-IFRS operating margin 4.2%   4.0% at the mid-point of ourrevenue and non-IFRS adjustedEPS guidance ranges IFRS SG&A (in millions) $62.0   N/A Non-IFRS adjusted SG&A (in millions) $56.5   $56 to $58 Non-IFRS adjusted EPS $0.35   $0.30 to $0.36 (1) IFRS EPS of $0.28 for Q3 2021 included an aggregate charge of $0.10 (pre-tax) per share for employee stock-based compensation (SBC) expense, amortization of intangible assets (excluding computer software), and restructuring charges. See the tables in Schedule 1 and note 8 to our September 30, 2021 unaudited interim condensed consolidated financial statements (Q3 2021 Interim Financial Statements) for per-item charges. This aggregate charge was within our Q3 2021 guidance range of between $0.09 and $0.15 per share for these items. IFRS EPS for Q3 2021 included a $0.04 per share positive impact attributable to a deferred tax recovery recorded in connection with the revaluation of certain temporary differences using the future effective tax rate of our Thailand subsidiary related to the forthcoming reduction of the income tax exemption rate in 2022 under an applicable tax incentive (Revaluation Impact) (see note 9 to our Q3 2021 Interim Financial Statements), and a $0.03 per share positive impact attributable to net other recoveries (consisting most significantly of a $0.07 per share positive impact attributable to legal recoveries, offset in part by a $0.05 per share negative impact attributable to Acquisition Costs, as described in note 8 to our Q3 2021 Interim Financial Statements), all offset in part by a $0.05 per share negative impact attributable to estimated COVID-19 Costs, net of $1 million of recognized COVID Subsidies (each defined below). IFRS EPS of $0.24 for Q3 2020 included a $0.06 per share negative impact attributable to estimated COVID-19 Costs and a $0.03 per share negative impact attributable to restructuring charges, more than offset by a $0.085 per share positive impact attributable to approximately $11 million of recognized COVID-19-related government subsidies, grants and credits (COVID Subsidies) and $0.3 million of customer recoveries related to COVID-19 (Customer Recoveries), and a $0.05 per share positive impact to reflect SBC expense reversals recorded in Q3 2020 to reflect a reduction in the estimated number of certain share-based awards that were expected to vest in January 2021 (SBC Reversal). IFRS EPS of $0.57 for the first three quarters of 2021 (YTD 2021) included a $0.17 per share negative impact attributable to estimated COVID-19 Costs, and a $0.02 per share negative impact attributable to net other charges (consisting most significantly of a $0.06 per share negative impact attributable to net restructuring charges and a $0.04 per share negative impact attributable to Acquisition Costs, offset in part by an $0.08 per share positive impact attributable to legal recoveries, as described in note 8 to our Q3 2021 Interim Financial Statements), all offset in part by a $0.09 per share positive impact attributable to approximately $11 million of recognized COVID Subsidies and $1 million of Customer Recoveries, as well as the $0.04 per share positive Revaluation Impact. IFRS EPS of $0.31 for the first three quarters of 2020 (YTD 2020) included a $0.22 per share negative impact attributable to estimated COVID-19 Costs, and a $0.15 per share negative impact attributable to restructuring charges, offset in part by a $0.21 per share positive impact attributable to approximately $26 million of recognized COVID Subsidies and $1 million in Customer Recoveries, as well as the $0.05 per share positive impact of the SBC Reversal. See Schedule 1 for the exclusions used to determine non-IFRS adjusted EPS for Q3 2021, Q3 2020, YTD 2021 and YTD 2020. COVID-19 Costs consist of both direct and indirect costs, including manufacturing inefficiencies related to lost revenue due to our inability to secure materials, idled labor costs, and incremental costs for labor, expedite fees and freight premiums, cleaning supplies, personal protective equipment, and/or IT-related services to support our work-from-home arrangements. (2) For Q3 2021, our revenue was at the mid-point of our guidance range, our non-IFRS adjusted EPS was towards the high end of our guidance range, and our non-IFRS operating margin exceeded the mid-point of our revenue and non-IFRS adjusted EPS guidance ranges. Non-IFRS adjusted SG&A for Q3 2021 was within our guidance range and our non-IFRS adjusted effective tax rate for Q3 2021 was 19% (compared to our anticipated estimate of approximately 20%). Q3 2021 non-IFRS operating margin and adjusted EPS benefited from strong performance in both of our segments, despite adverse revenue impacts attributable to materials shortages. See "Non-IFRS Supplementary Information" below for information on our rationale for the use of non-IFRS financial measures, and Schedule 1 for, among other items, non-IFRS financial measures included in this press release, as well as their definitions, uses, and a reconciliation of historical non-IFRS financial measures to the most directly comparable IFRS financial measures. Segment Updates ATS Segment: ATS segment revenue increased 12% in Q3 2021 compared to Q3 2020, driven by strong revenue growth in our Capital Equipment and HealthTech businesses, and the continuing recovery in our Industrial business. These increases more than offset continued softness in the commercial aerospace portion of our A&D business related to COVID-19. Also see "Supply Chain and Workforce Constraints" below for a description of the estimated adverse impact of such matters on ATS segment revenue in Q3 2021 and the prior year period. We remain on track to achieve our target of 10% revenue growth in our ATS segment in 2021 as compared to 2020. ATS segment margin increased to 4.3% in Q3 2021 compared to 3.7% in Q3 2020, primarily due to profitable growth in our Capital Equipment business, which more than offset the impact of lower revenues in our A&D business. This marks the sixth consecutive quarter of sequential ATS segment margin expansion. We anticipate our ATS segment margin will enter our target range of 5% to 6% in Q4 2021. Revenue from our semiconductor Capital Equipment customers increased in Q3 2021 compared to Q3 2020. The growth was driven by continued strong end market demand, in combination with new program wins and market share gains. We expect continued strength in our Capital Equipment business in Q4 2021 and into 2022, and anticipate that revenue from our Capital Equipment business for 2021 will exceed $700 million, which would represent at least 30% growth over 2020. While A&D revenue in Q3 2021 was lower than in Q3 2020, primarily due to soft demand driven by the ongoing impact of COVID-19, headwinds have stabilized, resulting in modest sequential growth. Although we do not expect our commercial aerospace business to return to pre-COVID-19 levels in the near term, we expect modest sequential growth to continue in Q4 2021 and into 2022, supported by new program wins. During Q3 2021, revenue from our Industrial business increased compared to Q3 2020. Demand in our Industrial business continues to recover after being significantly impacted by COVID-19 in 2020. We expect year-over-year revenue and sequential growth in Q4 2021 supported by strong bookings and a general recovery in demand, as well as the addition of PCI assuming consummation of the acquisition in November 2021 as anticipated (see "PCI Acquisition" below). We expect PCI's portfolio, as well as our existing Industrial business, to achieve solid organic growth in 2022. HealthTech revenue increased in Q3 2021 compared to Q3 2020. While we expect to see some moderation in revenue growth in Q4 2021 due to softening demand in our COVID-19-related programs, we continue to expect our overall HealthTech business to grow in 2022, supported by the ramping of new non-COVID-related programs. CCS Segment: CCS segment revenue decreased in Q3 2021 compared to Q3 2020, primarily due to our disengagement from programs with Cisco Systems, Inc. (Cisco Disengagement), completed in the fourth quarter of 2020, as well as program-specific demand softness from certain server customers in our Enterprise end market. Also see "Supply Chain and Workforce Constraints" below for a description of the estimated adverse impact of such matters on CCS segment revenue in Q3 2021 and the prior year period. These decreases were partially offset by strong demand from service provider customers, including in our HPS business, as well as strength in demand from certain storage customers in our Enterprise end market. We expect that year-to-year Enterprise revenue declines will begin to stabilize in Q4 2021. Our HPS business recorded strong revenue growth in Q3 2021, increasing 22% to approximately $300 million compared to Q3 2020. CCS segment revenue from programs with customers other than Cisco increased 2% in Q3 2021 compared to Q3 2020, and increased 5% YTD 2021 compared to YTD 2020. Although total CCS segment revenue for 2021 is anticipated to decline compared to 2020, we currently expect approximately 20% revenue growth in our HPS business in 2021 compared to 2020, as HPS revenue is expected to exceed $1 billion for 2021. We also expect HPS revenue to increase by at least 10% in 2022 compared to 2021. Despite lower revenue levels, CCS segment margin improved to 4.1% in Q3 2021 compared to 4.0% in Q3 2020, primarily due to a more favorable mix, driven by our portfolio reshaping activities, and an increased concentration of revenue from our HPS business. This represents our sixth consecutive quarter with CCS segment margin above our target range. We expect CCS segment margin to exceed our 2% to 3% target range in Q4 2021, and to be at the high end of the target range, or slightly higher, for 2022. Supply Chain and Workforce Constraints: Global supply chain constraints, including as a result of COVID-19, continued to impact both of our segments in Q3 2021, resulting in extended lead times for certain components, and impacting the availability of materials required to support customer programs. However, our advanced planning processes, supply chain management, and collaboration with our customers and suppliers helped to partially mitigate the impact of these constraints on our revenue. We expect this pressure to persist in Q4 2021 and throughout 2022, particularly in our CCS segment. While we have incorporated these dynamics into our Q4 2021 guidance and 2022 annual outlook to the best of our ability, their adverse impact (in terms of duration and severity) cannot be estimated with certainty, and may be materially in excess of our expectations. As a result of recent resurgences of COVID-19 outbreaks, the governments of various jurisdictions have mandated periodic lockdowns or workforce constraints. However, because Celestica's operations have been considered an essential service by relevant local government authorities to date, our manufacturing sites have generally continued to operate in impacted countries (including Malaysia, Mexico, Thailand and Laos in Q3 2021), albeit at reduced capacities (due to reduced attendance, shift reductions or temporary shutdowns). Although these lockdowns and workforce constraints present a challenge to our business performance when in force, due to effective resource management and planning, we have been able to largely mitigate the impact of these actions to date on our manufacturing capacity and our revenues. We estimate that we had an aggregate adverse revenue impact of approximately $30 million in Q3 2021 as a result of supply chain constraints and, to a lesser extent, lockdowns/workforce constraints, consistent with Q2 2021. Such constraints adversely impacted revenue in our ATS segment by approximately $21 million and our CCS segment by approximately $9 million in Q3 2021 (Q3 2020 — approximately $16 million (ATS segment — approximately $7 million; CCS segment — approximately $9 million)). We also incurred approximately $7 million of estimated COVID-19 Costs during Q3 2021 (Q3 2020 — $8 million), and recognized approximately $1 million of COVID Subsidies and no Customer Recoveries (Q3 2020 — approximately $11 million in COVID Subsidies and $0.3 million in Customer Recoveries), each as defined in footnote 1 to the "Summary of Selected Q3 2021 Results" above. PCI Acquisition On September 21, 2021, we entered into a definitive agreement to acquire PCI, a fully-integrated design, engineering and manufacturing solutions provider with five manufacturing and design facilities across Asia. The purchase price is estimated to be approximately $306 million (subject to a working capital adjustment). We expect to finance the acquisition with a combination of cash and borrowings of up to $220 million under our current credit facility (described below). The transaction is expected to close in November 2021, subject to satisfaction of customary closing conditions. There can be no assurance, however, that this transaction will be consummated, in a timely manner, or at all. We intend to use borrowings under our revolver to finance this portion of the PCI acquisition at closing. However, we are currently pursuing the addition of a new term loan under our credit facility with the Administrative Agent thereunder, which if obtained, will be used to repay the amounts borrowed under the revolver for the acquisition. Although we believe that such term loan will be provided on acceptable terms, there can be no assurance that this will be the case. Intention to Launch New NCIB We intend to file a notice of intention with the Toronto Stock Exchange (TSX) to commence a new NCIB in Q4 2021, after our current NCIB expires in November 2021. If this notice is accepted by the TSX, we expect to be permitted to repurchase for cancellation, at our discretion during the 12 months following such acceptance, up to 10% of the "public float" (calculated in accordance with the rules of the TSX) of our issued and outstanding subordinate voting shares. Purchases under the new NCIB, if accepted, will be conducted in the open market or as otherwise permitted, subject to applicable terms and limitations, and will be made through the facilities of the TSX and the New York Stock Exchange. We believe that a new NCIB is in the interest of the Company. Q3 2021 Webcast Management will host its Q3 2021 results conference call on October 26, 2021 at 8:00 a.m. Eastern Daylight Time (EDT). The webcast can be accessed at www.celestica.com. Non-IFRS Supplementary Information In addition to disclosing detailed operating results in accordance with IFRS, Celestica provides supplementary non-IFRS financial measures to consider in evaluating the company's operating performance. Management uses adjusted net earnings and other non-IFRS financial measures to assess operating performance and the effective use and allocation of resources; to provide more meaningful period-to-period comparisons of operating results; to enhance investors' understanding of the core operating results of Celestica's business; and to set management incentive targets. We believe investors use both IFRS and non-IFRS financial measures to assess management's past, current and future decisions associated with our priorities and our allocation of capital, as well as to analyze how our business operates in, or responds to, swings in economic cycles or to other events that impact our core operations. See Schedule 1 below. About Celestica Celestica enables the world's best brands. Through our recognized customer-centric approach, we partner with leading companies in Aerospace and Defense, Communications, Enterprise, HealthTech, Industrial, Capital Equipment, and Energy to deliver solutions for their most complex challenges. As a leader in design, manufacturing, hardware platform and supply chain solutions, Celestica brings global expertise and insight at every stage of product development - from the drawing board to full-scale production and after-market services. With talented teams across North America, Europe and Asia, we imagine, develop and deliver a better future with our customers. For more information on Celestica, visit www.celestica.com. Our securities filings can be accessed at www.sedar.com and www.sec.gov. Cautionary Note Regarding Forward-looking Statements This press release contains forward-looking statements, including, without limitation, those related to the impact of the COVID-19 pandemic on our business; our priorities, goals and strategies; trends in the electronics manufacturing services (EMS) industry and our segments (and/or constituent businesses), and their anticipated impact; the anticipated impact of current market conditions on each of our segments (and/or constituent businesses) and near term expectations (positive and negative); our anticipated financial and/or operational results and outlook, including our anticipated Q4 2021 non-IFRS adjusted effective tax rate; our anticipated acquisition of PCI, the expected timing, cost, and funding thereof, and the expected impact of such acquisition, if consummated, on our Q4 2021 and 2022 financial results; our intention to launch a new NCIB and anticipated terms; our pursuit of a new term loan under our credit facility; materials, components and supply chain constraints; our credit risk; our liquidity; anticipated charges and expenses, including restructuring charges; the potential impact of tax and litigation outcomes; mandatory prepayments under our credit facility; interest rates; and our financial statement estimates and assumptions. Such forward-looking statements may, without limitation, be preceded by, followed by, or include words such as "believes," "expects," "anticipates," "estimates," "intends," "plans," "continues," "project," "target," "potential," "possible," "contemplate," "seek," or similar expressions, or may employ such future or conditional verbs as "may," "might," "will," "could," "should," or "would," or may otherwise be indicated as forward-looking statements by grammatical construction, phrasing or context. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the U.S. Private Securities Litigation Reform Act of 1995, where applicable, and applicable Canadian securities laws. Forward-looking statements are provided to assist readers in understanding management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. Forward-looking statements are not guarantees of future performance and are subject to risks that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including, among others, risks related to: customer and segment concentration; challenges of replacing revenue from completed, lost or non-renewed programs or customer disengagements; our customers' ability to compete and succeed using our products and services; price, margin pressures, and other competitive factors and adverse market conditions affecting, and the highly competitive nature of, the EMS industry in general and our segments in particular (including the risk that anticipated market improvements do not materialize); changes in our mix of customers and/or the types of products or services we provide, including negative impacts of higher concentrations of lower margin programs; the cyclical and volatile nature of our semiconductor business; delays in the delivery and availability of components, services and/or materials; managing changes in customer demand; rapidly evolving and changing technologies, and changes in our customers' business or outsourcing strategies; the expansion or consolidation of our operations; volatility in the commercial aerospace industry; the inability to maintain adequate utilization of our workforce; the nature of the display market; defects or deficiencies in our products, services or designs; integrating and achieving the anticipated benefits from acquisitions and "operate-in-place" arrangements; compliance with customer-driven policies and standards, and third-party certification requirements; challenges associated with new customers or programs, or the provision of new services; the impact of our restructuring actions, divestitures and/or productivity initiatives, including a failure to achieve anticipated benefits therefrom; the incurrence of future restructuring charges, impairment charges, other write-downs of assets or operating losses; managing our business during uncertain market, political and economic conditions, including among others, geopolitical and other risks associated with our international operations, including military actions, protectionism and reactive countermeasures, economic or other sanctions or trade barriers; disruptions to our operations, or those of our customers, component suppliers and/or logistics partners, including as a result of events outside of our control, including, among others: policies or legislation instituted by the former or current administration in the U.S., U.S. and global tax reform, the potential impact of significant tariffs on items imported into the U.S. and related countermeasures, and/or the impact of (in addition to COVID-19) other widespread illness or disease; the scope, duration and impact of the COVID-19 pandemic, including its continuing adverse impact on the commercial aerospace industry; changes to our operating model; changing commodity, materials and component costs as well as labor costs and conditions; execution and/or quality issues (including our ability to successfully resolve these challenges); non-performance by counterparties; maintaining sufficient financial resources to fund currently anticipated financial actions and obligations and to pursue desirable business opportunities; negative impacts on our business resulting from current outstanding third-party indebtedness; negative impacts on our business resulting from any significant uses of cash, securities issuances, and/or additional increases in third-party indebtedness (including increased third-party indebtedness for the acquisition of PCI, and/or as a result of an inability to sell desired amounts under our uncommitted accounts receivable sales program); the failure to obtain an additional term loan in connection with our acquisition of PCI on acceptable terms, in a timely manner, or at all, and if obtained, that such term loan includes additional restrictive financial or operational covenants, significantly increased interest rates and/or additional significant fees; the failure to satisfy the closing conditions required for our purchase of PCI; a material adverse change at PCI; operational impacts that may affect PCI's ability to achieve anticipated financial results; the purchase price for PCI varying from the expected amount; the inability to use cash on hand and/or borrowings under our credit facility to fund the acquisition as anticipated; the failure to consummate the purchase of PCI when anticipated, in a timely manner, or at all, and if the acquisition is consummated, a failure to successfully integrate the acquisition, further develop our capabilities and/or customer base in expected markets or otherwise expand our portfolio of solutions, and/or achieve the other expected synergies and benefits from the acquisition; foreign currency volatility; our global operations and supply chain; competitive bid selection processes; customer relationships with emerging companies; recruiting or retaining skilled talent; our dependence on industries affected by rapid technological change; our ability to adequately protect intellectual property and confidential information; increasing taxes, tax audits, and challenges of defending our tax positions; obtaining, renewing or meeting the conditions of tax incentives and credits; computer viruses, malware, ransomware, hacking attempts or outages that may disrupt our operations; the inability to prevent or detect all errors or fraud; the variability of revenue and operating results; unanticipated disruptions to our cash flows; compliance with applicable laws, regulations, and government subsidies, grants or credits; the management of our information technology systems; our pension and other benefit plan obligations; changes in accounting judgments, estimates and assumptions; our ability to maintain compliance with applicable (or any new) credit facility covenants; interest rate fluctuations and changes to LIBOR; deterioration in financial markets or the macro-economic environment; our credit rating; the interest of our controlling shareholder; current or future litigation, governmental actions, and/or changes in legislation or accounting standards; negative publicity; that the TSX will not accept a new NCIB; that we will not be permitted to, or do not, repurchase subordinate voting shares (SVS) under any NCIB; and our ability to achieve our environmental, social and governance (ESG) initiative goals, including with respect to climate change. The foregoing and other material risks and uncertainties are discussed in our public filings at www.sedar.com and www.sec.gov, including in our most recent MD&A, our 2020 Annual Report on Form 20-F filed with, and subsequent reports on Form 6-K furnished to, the U.S. Securities and Exchange Commission, and as applicable, the Canadian Securities Administrators. The forward-looking statements contained in this press release are based on various assumptions, many of which involve factors that are beyond our control. Our material assumptions include those related to the following: the scope and duration of materials constraints and the COVID-19 pandemic and its impact on our sites, customers and suppliers; fluctuation of production schedules from our customers in terms of volume and mix of products or services; the timing and execution of, and investments associated with, ramping new business; the success of our customers' products; our ability to retain programs and customers; the stability of general economic and market conditions and currency exchange rates; supplier performance, pricing and terms; compliance by third parties with their contractual obligations; the costs and availability of components, materials, services, equipment, labor, energy and transportation; that our customers will retain liability for product/component tariffs and countermeasures; global tax legislation changes; our ability to keep pace with rapidly changing technological developments; the timing, execution and effect of restructuring actions; the successful resolution of quality issues that arise from time to time; the components of our leverage ratio (as defined in our credit facility); our ability to successfully diversify our customer base and develop new capabilities; the availability of cash resources for, and the permissibility under our credit facility of, repurchases of outstanding SVS under NCIBs, acceptance of a new NCIB and compliance with applicable laws and regulations pertaining to NCIBs; receipt of an additional term loan under our credit facility on acceptable terms and in a timely manner; that we will maintain compliance with applicable (or any new) credit facility covenants; anticipated demand strength in certain of our businesses; anticipated demand weakness in, and/or the impact of anticipated adverse market conditions on, certain of our businesses; and that: the closing conditions to our purchase of PCI will be satisfied in a timely manner; no material adverse change will have occurred at PCI; anticipated financial results by PCI will be achieved; our purchase of PCI will be consummated in a timely manner and on anticipated terms; our ability to use available cash on hand and incur further indebtedness under our credit facility will be as expected in order to finance the PCI acquisition as anticipated; once acquired, we are able to successfully integrate PCI, further develop our ATS segment business, and achieve the other expected synergies and benefits from the acquisition; all financial information provided by PCI is accurate and complete, and all forecasts of PCI's operating results are reasonable and were provided to Celestica in good faith; and we will continue to have sufficient financial resources to fund currently anticipated financial actions and obligations and to pursue desirable business opportunities. Although management believes its assumptions to be reasonable under the current circumstances, they may prove to be inaccurate, which could cause actual results to differ materially (and adversely) from those that would have been achieved had such assumptions been accurate. Forward-looking statements speak only as of the date on which they are made, and we disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. All forward-looking statements attributable to us are expressly qualified by these cautionary statements. Schedule 1Supplementary Non-IFRS Financial Measures The non-IFRS financial measures included in this press release are: adjusted gross profit, adjusted gross margin (adjusted gross profit as a percentage of revenue), adjusted selling, general and administrative expenses (SG&A), adjusted SG&A as a percentage of revenue, operating earnings (or adjusted EBIAT), operating margin (operating earnings or adjusted EBIAT as a percentage of revenue), adjusted net earnings, adjusted EPS, adjusted return on invested capital (adjusted ROIC), free cash flow, adjusted tax expense and adjusted effective tax rate. Adjusted EBIAT, adjusted ROIC, free cash flow, adjusted tax expense and adjusted effective tax rate are further described in the tables below. In calculating our non-IFRS financial measures, management excludes the following items where indicated in the table below: employee stock-based compensation (SBC) expense, amortization of intangible assets (excluding computer software), Other Charges, net of recoveries (defined below), Finance Costs (defined below), and acquisition inventory fair value adjustments, all net of the associated tax adjustments (quantified in the table below), and non-core tax impacts (tax adjustments related to acquisitions, and certain other tax costs or recoveries related to restructuring actions or restructured sites). We believe the non-IFRS financial measures we present herein are useful to investors, as they enable investors to evaluate and compare our results from operations in a more consistent manner (by excluding specific items that we do not consider to be reflective of our core operations), to evaluate cash resources that we generate from our business each period, and to provide an analysis of operating results using the same measures our chief operating decision makers use to measure performance. In addition, management believes that the use of a non-IFRS adjusted tax expense and a non-IFRS adjusted effective tax rate provide improved insight into the tax effects of our core operations, and are useful to management and investors for historical comparisons and forecasting. These non-IFRS financial measures result largely from management's determination that the facts and circumstances surrounding the excluded charges or recoveries are not indicative of our core operations. Non-IFRS financial measures do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other companies that report under IFRS, or who report under U.S. GAAP and use non-GAAP financial measures to describe similar financial metrics. Non-IFRS financial measures are not measures of performance under IFRS and should not be considered in isolation or as a substitute for any IFRS financial measure. The most significant limitation to management's use of non-IFRS financial measures is that the charges or credits excluded from the non-IFRS financial measures are nonetheless recognized under IFRS and have an economic impact on us. Management compensates for these limitations primarily by issuing IFRS results to show a complete picture of our performance, and reconciling non-IFRS financial measures back to the most directly comparable IFRS financial measures. The economic substance of the exclusions described above (where applicable to the periods presented) and management's rationale for excluding them from non-IFRS financial measures is provided below: Employee SBC expense, which represents the estimated fair value of stock options, restricted share units and performance share units granted to employees, is excluded because grant activities vary significantly from quarter-to-quarter in both quantity and fair value. In addition, excluding this expense allows us to better compare core operating results with those of our competitors who also generally exclude employee SBC expense in assessing operating performance, who may have different granting patterns and types of equity awards, and who may use different valuation assumptions than we do. Amortization charges (excluding computer software) consist of non-cash charges against intangible assets that are impacted by the timing and magnitude of acquired businesses. Amortization of intangible assets varies among our competitors, and we believe that excluding these charges permits a better comparison of core operating results with those of our competitors who also generally exclude amortization charges in assessing operating performance. Other Charges, net of recoveries, consist of, when applicable: Restructuring Charges, net of recoveries (defined below); Transition Costs (defined below); net Impairment charges (defined below); consulting, transaction and integration costs related to potential and completed acquisitions, and charges or releases related to the subsequent re-measurement of indemnification assets or the release of indemnification or other liabilities recorded in connection with our acquisition of Impakt Holdings, LLC (such releases were first recorded in the first quarter of 2021) (collectively, Acquisition Costs (Recoveries)); legal settlements (recoveries); credit facility-related charges; and post-employment benefit plan losses. We exclude these charges, net of recoveries, because we believe that they are not directly related to ongoing operating results and do not reflect expected future operating expenses after completion of these activities or incurrence of the relevant costs. Our competitors may record similar charges at different times, and we believe these exclusions permit a better comparison of our core operating results with those of our competitors who also generally exclude these types of charges, net of recoveries, in assessing operating performance. Restructuring Charges, net of recoveries, consist of costs relating to: employee severance, lease terminations, site closings and consolidations; write-downs of owned property and equipment which are no longer used and are available for sale; and reductions in infrastructure. Transition Costs consist of: (i) costs recorded in connection with the relocation of our Toronto manufacturing operations, and the move of our corporate headquarters into and out of a temporary location during, and upon completion, of the construction of space in a new office building at our former location (all in connection with the 2019 sale of our Toronto real property) and (ii) costs recorded in connection with the transfer of manufacturing lines from closed sites to other sites within our global network. Transition Costs consist of direct relocation and duplicate costs (such as rent expense, utility costs, depreciation charges, and personnel costs) incurred during the transition periods, as well as cease-use costs incurred in connection with idle or vacated portions of the relevant premises that we would not have incurred but for these relocations and transfers. We believe that excluding these costs permits a better comparison of our core operating results from period-to-period, as these costs will not reflect our ongoing operations once these relocations and manufacturing line transfers are complete. Impairment charges, which consist of non-cash charges against goodwill, intangible assets, property, plant and equipment, and right-of-use (ROU) assets, result primarily when the carrying value of these assets exceeds their recoverable amount. Finance Costs consist of interest expense and fees related to our credit facility (including debt issuance and related amortization costs), our interest rate swap agreements, our accounts receivable sales program and customers' supplier financing programs, and interest expense on our lease obligations, net of interest income earned. We believe that excluding these costs provides useful insight for assessing the performance of our core operations. Acquisition inventory fair value adjustments relate to the write-up of the inventory acquired in connection with our acquisitions, representing the difference between the cost and fair value of such inventory. We exclude the impact of the recognition of these adjustments, when incurred, because we believe such exclusion permits a better comparison of our core operating results from period-to-period, as their impact is not indicative of our ongoing operating performance. Non-core tax impacts are excluded, as we believe that these costs or recoveries do not reflect core operating performance and vary significantly among those of our competitors who also generally exclude these costs or recoveries in assessing operating performance. The following table sets forth, for the periods indicated, the various non-IFRS financial measures discussed above, and a reconciliation of non-IFRS financial measures to the most directly comparable IFRS financial measures (in millions, except percentages and per share amounts):   Three months ended September 30   Nine months ended September 30   2020   2021   2020   2021     % ofrevenue     % ofrevenue     % ofrevenue     % ofrevenue IFRS revenue $ 1,550.5       $ 1,467.4       $ 4,361.5       $ 4,122.6                             IFRS gross profit $ 124.2   8.0 %   $ 125.4   8.5 %   $ 323.8   7.4 %   $ 344.9   8.4 % Employee SBC expense 1.1       3.1       8.9       9.4     Non-IFRS adjusted gross profit $ 125.3   8.1 %   $ 128.5   8.8 %   $ 332.7   7.6 %   $ 354.3   8.6 %                         IFRS SG&A $ 56.9   3.7 %   $ 62.0   4.2 %   $ 171.3   3.9 %   $ 179.6   4.4 % Employee SBC expense (0.6 )     (5.5 )     (11.8 )     (14.8 )   Non-IFRS adjusted SG&A $ 56.3   3.6 %   $ 56.5   3.9 %   $ 159.5   3.7 %   $ 164.8   4.0 %                         IFRS earnings before income taxes $ 40.3   2.6 %   $ 43.9   3.0 %   $ 63.8   1.5 %   $ 94.4   2.3 % Finance Costs 8.9       7.8       28.6       23.4     Employee SBC expense 1.7       8.6       20.7       24.2     Amortization of intangible assets (excluding computer software) 5.5       4.9       16.9       14.7     Other Charges (recoveries) 3.7       (3.9 )     19.0       2.9     Non-IFRS operating earnings (adjusted EBIAT) (1) $ 60.1   3.9 %   $ 61.3   4.2 %   $ 149.0   3.4 %   $ 159.6   3.9 %                         IFRS net earnings $ 30.4   2.0 %   $ 35.2   2.4 %   $ 40.5   0.9 %   $ 72.0   1.7 % Employee SBC expense 1.7       8.6       20.7       24.2     Amortization of intangible assets (excluding computer software) 5.5       4.9       16.9       14.7     Other Charges (recoveries) 3.7       (3.9 )     19.0       2.9     Adjustments for taxes (2) (0.4 )     (1.4 )     (3.8 )     (4.7 )   Non-IFRS adjusted net earnings $ 40.9       $ 43.4       $ 93.3       $ 109.1                             Diluted EPS                       Weighted average # of shares (in millions) 129.1       125.5       129.1       127.3     IFRS earnings per share $ 0.24       $ 0.28       $ 0.31       $ 0.57     Non-IFRS adjusted earnings per share $ 0.32       $ 0.35       $ 0.72       $ 0.86     # of shares outstanding at period end (in millions) 129.1       124.7       129.1       124.7                             IFRS cash provided by operations $ 42.0       $ 55.7       $ 189.9       $ 161.0     Purchase of property, plant and equipment, net of sales proceeds (9.9 )     (13.2 )     (32.2 )     (35.3 )   Lease payments (3) (9.9 )     (10.0 )     (27.9 )     (30.0 )   Finance Costs paid (excluding debt issuance costs paid) (3) (6.4 )     (5.4 )     (22.3 )     (16.5 )   Non-IFRS free cash flow (3) $ 15.8       $ 27.1       $ 107.5       $ 79.2                             IFRS ROIC % (4) 10.2 %     10.9 %     5.3 %     7.8 %   Non-IFRS adjusted ROIC % (4) 15.2 %     15.2 %     12.5 %     13.2 %   (1)   Management uses non-IFRS operating earnings (adjusted EBIAT) as a measure to assess performance related to our core operations. Non-IFRS adjusted EBIAT is defined as earnings (loss) before income taxes, Finance Costs (defined above), employee SBC expense, amortization of intangible assets (excluding computer software), Other Charges (recoveries) (defined above), and in applicable periods, acquisition inventory fair value adjustments. See note 8 to our Q3 2021 Interim Financial Statements for separate quantification and discussion of the components of Other Charges (recoveries). (2)   The adjustments for taxes, as applicable, represent the tax effects of our non-IFRS adjustments and non-core tax impacts (see below). The following table sets forth a reconciliation of our IFRS tax expense and IFRS effective tax rate to our non-IFRS adjusted tax expense and our non-IFRS adjusted effective tax rate for the periods indicated, in each case determined by excluding the tax benefits or costs associated with the listed items (in millions, except percentages) from our IFRS tax expense for such periods:   Three months ended   Nine months ended   September 30   September 30   2020 Effectivetax rate   2021 Effectivetax rate   2020 Effectivetax rate   2021 Effectivetax rate                     IFRS tax expense and IFRS effective tax rate $ 9.9   25 %   $ 8.7   20 %   $ 23.3   37 %   $ 22.4   24 %                         Tax costs (benefits) of the following items excluded from IFRS tax expense:                       Employee SBC expense 0.2       1.4       1.2       2.9     Other Charges (recoveries) 0.2       —       2.2       0.7     Non-core tax impacts related to tax uncertainties* —       —       0.4       —     Non-core tax impact related to restructured sites** —       —       —       1.1     Non-IFRS adjusted tax expense and non-IFRS adjusted effective tax rate $ 10.3   20 %   $ 10.1   19 %   $ 27.1   23 %   $ 27.1   20 % * Consists of the reversal of certain tax uncertainties related to a prior acquisition that became statute-barred in the first quarter of 2020. ** Consists of the reversals of tax uncertainties related to one of our Asian subsidiaries that completed its liquidation and dissolution during the first quarter of 2021. (3)   Management uses non-IFRS free cash flow as a measure, in addition to IFRS cash provided by (used in) operations, to assess our operational cash flow performance. We believe non-IFRS free cash flow provides another level of transparency to our liquidity. Non-IFRS free cash flow is defined as cash provided by (used in) operations after the purchase of property, plant and equipment (net of proceeds from the sale of certain surplus equipment and property), lease payments and Finance Costs paid (excluding any debt issuance costs and when applicable, waiver fees related to our credit facility). We do not consider debt issuance costs (nil paid in Q3 2021 and YTD 2021; $0.3 million and $0.6 million paid in Q3 2020 and YTD 2020, respectively) or such waiver fees (when applicable) to be part of our ongoing financing expenses. As a result, these costs are excluded from total Finance Costs paid in our determination of non-IFRS free cash flow. Note, however, that non-IFRS free cash flow does not represent residual cash flow available to Celestica for discretionary expenditures. (4)   Management uses non-IFRS adjusted ROIC as a measure to assess the effectiveness of the invested capital we use to build products or provide services to our customers, by quantifying how well we generate earnings relative to the capital we have invested in our business. Non-IFRS adjusted ROIC is calculated by dividing non-IFRS adjusted EBIAT by average net invested capital. Net invested capital (calculated in the table below) is defined as total assets less: cash, ROU assets, accounts payable, accrued and other current liabilities, provisions, and income taxes payable. We use a two-point average to calculate average net invested capital for the quarter and a four-point average to calculate average net invested capital for the nine-month period. A comparable measure under IFRS would be determined by dividing IFRS earnings (loss) before income taxes by average net invested capital (which we have set forth in the charts above and below), however, this measure (which we have called IFRS ROIC), is not a measure defined under IFRS. The following table sets forth, for the periods indicated, our calculation of IFRS ROIC % and non-IFRS adjusted ROIC % (in millions, except IFRS ROIC % and non-IFRS adjusted ROIC %).   Three months ended   Nine months ended   September 30   September 30   2020   2021   2020   2021                 IFRS earnings before income taxes $ 40.3     $ 43.9     $ 63.8     $ 94.4   Multiplier to annualize earnings 4     4     1.333     1.333   Annualized IFRS earnings before income taxes $ 161.2     $ 175.6     $ 85.0     $ 125.8                   Average net invested capital for the period.....»»

Category: earningsSource: benzingaOct 26th, 2021

Interview With Peloton’s Tom Cortese From CNBC Disruptor 50 Summit

Following is the unofficial transcript of a CNBC interview with Tom Cortese, Peloton Interactive Inc (NASDAQ:PTON) Co-Founder & Chief Product Officer, live during the CNBC Disruptor 50 Summit today. Q3 2021 hedge fund letters, conferences and more Interview With Peloton’s Tom Cortese JULIA BOORSTIN: Thank you so much, Tyler. And Tom Cortese, thank you so […] Following is the unofficial transcript of a CNBC interview with Tom Cortese, Peloton Interactive Inc (NASDAQ:PTON) Co-Founder & Chief Product Officer, live during the CNBC Disruptor 50 Summit today. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Walter Schloss Series in PDF Get the entire 10-part series on Walter Schloss in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues. (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q3 2021 hedge fund letters, conferences and more Interview With Peloton's Tom Cortese JULIA BOORSTIN: Thank you so much, Tyler. And Tom Cortese, thank you so much for joining us here today to talk about being a disruptor and how to keep innovating during a period of so much uncertainty and change. Thanks for joining us today. TOM CORTESE: Julia, thanks so much for having me. Excited to be here. Excited to be among this great group of disruptors. BOORSTIN: So Tom, I want to start off with this idea of being a disruptor and being an innovator. And I think it's really notable that you and your co-founders are still running the company. That is a very unusual thing for a startup, to transition to keep that leadership when a company goes public. But we're going to return to that topic. I want to start off with this idea, though, a big innovator and how you keep innovating. So my question is, after this period of transformation and change of the way we all live and exercise, how are you thinking about innovation now to hold on to consumers and capture more of them as we enter this new hybrid work/life world? CORTESE: What a great spot to start Julia. You know, we live and breathe innovation here at Peloton. And I get to spend my days with the folks involved in hardware, software and content. And if you think about our business and what we get to do, we get to innovate almost on three different timelines. With our daily content production, we have our instructors and our producer team, our music team, innovating, essentially, daily, looking at trends and how our members are working out, how consumers want to work out, bringing new class content to the forefront, being able to test new class types, etc. And we can do that on a daily basis and immediately respond to changing tastes in consumer behavior. And then on a, you know, weekly or monthly basis, we're putting out software updates to all of our equipment, our bikes, treads, whatever else might be coming, our TV apps, our iOS and Android apps on a multi-week or multi-month basis, we're putting out updates. And again, that same idea where our teams are just plugged in to an understanding of what our members are doing as they move through our system, looking for those pathways where our members are finding enjoyment and trying to just widen those pathways, looking for areas where there might be any friction and just ripping them out. And then third, you know, on a one or two-year cycle we're innovating in hardware and we've got teams who are deep into looking at what's happening in, you know, motor technology for the future to create the future treadmill or other what's happening in industrial design, how to create the most unique equipment that fits into the convenience of home in a way that we know our customers love. So what is just so much fun about our business is that we can innovate across all three of these areas, and we can do it on these unique timelines, and just keep on going. BOORSTIN: Yeah, I mean as you talk about innovating over, you know, near term, medium term and long term, it seems to me like the pressure to accelerate the pace of innovation on all three of those levels is more intense than ever, because you have people who have more options than ever. And I'm not talking about other exercise bikes they can use at home, I'm talking about, yes, there are things like Mirror and Tonal, but more realistically, people are just leaving the house and may be less willing to make a big investment in at home fitness. How do you think about sort of overall maintaining and accelerating your pace of innovation? CORTESE: Yeah absolutely. It's about creating something that consumers love. And when you look at Peloton and you look at the system that we've built you look at the fact that, you know, year over year, our members workout more with us year two than year one, more in year three than year two, right. The proof is in the data points that we've created a system that is engaging in a way where folks finally feel that they can enjoy working out, they have fun working out, they want to work out, and so they do, right. And you know, I think what we should remember about what we are all doing is we are bringing products to market to people, to consumers. For us, they're our members. And when you can show genuine value and you can show that you produce something that works for the consumer in a special way, that's how you capture the attention of the consumer. And, you know, we believe that we've found a very special formula when we entered the market with bike, and we've been able to bring that same type of formula to tread. We're now using that formula and bringing it across multiple modalities with our app based platform and we've got a ton more in the pipeline. And so we're just going to keep staying focused there. We know what we have, we know how to make our members tick, and we're going to go bring that across multiple modalities and across multiple geographies and keep on going. BOORSTIN: Well we look forward to seeing what other products you launch. But I think that you raise this interesting point about sort of innovating and figuring out how to apply this model that you came upon early in Peloton’s lifecycle to all these other platforms. And that brings me to this topic of adapting from being a startup to being a big public company. And we see a lot of companies have changes in leadership, but Peloton is relatively unique, that you and your co-founders are still running the company. So I'm wondering how you think about maintaining the speed of a startup, the energy and innovation of a startup and also figuring out how to adapt to the structures and the oversight of being a public giant effectively? CORTESE: There's a lot there, but I've got to start with the fact that, what's funny to me about this whole concept. And the question is, you know, for me, I'm still me. And I've been the same me for 10 years. My co-founders are still the co-founders who I've been working with making Peloton happen for the last 10 years. We still have the same level of remarkable trust in one another. And you know, we still argue with one another in all the same ways, right. And so, I know to the outside world now we are a big company but, you know, we are still that core group. And some of the principles that applied back when we were five people that now apply when we're more than 5,000, I think are the ones to focus on. And my favorite of which and the one I think has really made this all work is this notion of divide and conquer. You know, when we got together as five folks, we each had our own unique role that we were to play and I won't go through what they each were. But layered on top of having that unique and discreet role, we each had a great deal of trust that the other would, you know, bring to bear what we expected of each other. So that we would arrive together at that same point and be able to drive the business forward. And along the path when you're operating under divide and conquer like this, you also have to be super cognizant of all the things that you actually do well and the things that you actually do not. And I think we have a pretty conscious group, especially on the do not piece. And what we've been able to do, taking this divide and conquer method, and then taking this self-awareness call it, we've been able to look and say hey, where do we have holes and how can we shore up our executive team, you know, with folks who can plug in in different ways and bring different perspectives? And so here we are now, and it is 10 years later from the founding just about. And if you look at our executive team we've got this great mix of, you know, the old folks like me who have been there since day one. And these, you know, remarkable professionals who have been sewn into the fabric of our corporate culture and help us drive. And now together, we continue to push. BOORSTIN: Some valuable lessons there. I think probably for many different types of companies, this idea of self-awareness and hiring to fill the holes and also delegation and dividing and conquering, I'm wondering if there are any other lessons you've learned in the past decade about what it takes to successfully adapt into this sort of public company roll? I mean, I always reference what Reed Hoffman says about going from being a pirate to being part of the Navy. You know, you start off small and scrappy and then all of a sudden you're the establishment. So what do you – any other piece of advice, what would you tell entrepreneurs about what it takes to successfully make that jump? CORTESE: Look, you know, whether or not we're perceived as the establishment when I walk into, you know, a certain room or not, is up to, you know, the folks, the folks looking in. I do think it is really important to stay true to your core values, to stay true to those things that made you work and I just gave you examples of what I think made us work when we were small. And I'm certain that we're able to continue to bring those cultural elements to bear, even as we're a bigger company. And so again, we remain that same company. We wake up with that same hunger, we continue to have that chip on the shoulder that we've had from day one when no one wanted to invest in Peloton, right. We still wake up thinking we're that guy, right. We're those guys. And we also wake up every day with sort of the recognition and the burden that even though we are 10 years into this journey, we look down and we find our toes just standing on the starting line, because that opportunity ahead is so enormous, and that's an incredibly energizing thing, right. Some days I wake up and it's the opposite of energizing. Like how after 10 years am I still on the starting line? But it's also just awesome. Like, wow. Okay, guys, we've got the world's opportunity ahead. Let's go get it. BOORSTIN: So Tom, as you look at the next 10 years, my question is what kind of company is Peloton? Is it a fitness company? Is it a media company? Is it a tech company, a hardware company? Maybe all of those things? But how would you articulate what the future is of this company? CORTESE: We're a company focused on providing tremendous value for our members. And what's been interesting about our journey is we've had to be a whole great number of companies in order to make that happen. In order for us to step into fitness and completely innovate and change the narrative of how people feel about home fitness, how people approach fitness from something that they had to sort of will themselves to do, to being something that they can enjoy can enjoy doing, from something that they had to sort of travel to go make happen, to something they can do from the convenience of their home, from something where all of a sudden, you know, the magic and power of a group can be right there with you wherever you are. In order to completely shift that industry, and draw consumers into a whole new system for fitness and show them that it works for them, we had to go and innovate in all these different categories, right. We had to become a hardware company, we had to become a software company. We've built studios, we've built our own delivery facilities. I know you like talking about supply chain these days. We're in the process of building a factory in Ohio. And we've done all those things not because we wake up and say like, wow it would be awesome to create a really complicated business. But we do them because we have to do them in order to provide the value that we want to provide for our members. And so, as long as we see opportunity to provide value, we're going to go do what we need to do. And what's great about that formula is that when you put forward a product or service that genuinely creates value for the consumer, the consumer is going to be there. BOORSTIN: So let's talk a little about supply chain, though. I saw this joke that the Press Secretary at the White House made about the tragedy of the delayed treadmill. And so sort of poking fun at the fact that there are things that are maybe nice to have that are delayed like treadmills, but then also much more serious things that are delayed. How are you approaching the supply chain issue? Yes, down the line, you might have a factory here in the U.S., but how big of a problem could this be for you nearer term? CORTESE: You know, it was certainly a problem over the last 18 months. Thankfully, we have a team who also has deep in their bones this notion of having a bias to action. And you know, we pulled all the levers that we can pull. You know it was reported at some point, you know, we were putting bikes and treads on planes in order to be able to get them here. But we have a very robust supply chain that we've been building over the last number of years. We have a big investment in Taiwan and our partners and in our facilities, and we have great relationships with carriers. And through both our investment in the state of Ohio and our new partners, an acquisition of Precor, we've been building out our North America production and supply chain capabilities. So we've just been attacking this across every aspect of the supply chain with everything we've got, so that as we look ahead, we feel very comfortable about being able to chase this opportunity as the globe sort of settles out of this chip shortage and ocean shortage that we're seeing right now. BOORSTIN: Yeah, I mean that is certainly an issue that so many different companies are dealing with. But you did have a unique issue, which was this treadmill recall. Tell me how you approached that crisis and how you tried to learn from it for the future. CORTESE: Yeah, look, you know, we had to recall the treadmill this summer. And it was a gut wrenching moment for all of us as executives, as founders, as a team to wake up to the news of a tragedy and determine how to respond to it. You know, over the course of building this business, we've been, you know, we've genuinely enjoyed all waking up to being able to receive these wonderful notes from our members, social posts etc. talking about how Peloton has allowed them to transform their lives. Especially over the pandemic, we got so many folks reaching out and saying, you know, I am so thankful that through this I had my treadmill or I'm so thankful I had my bike. I'm so thankful I had the Peloton app. And that's what powers us. That's what makes us feel good about what we're doing and makes us want to continue to bring Peloton product and service to more and more folks. And so to get, you know, for this to happen, you know, gut wrenching, you know, moment of the recall to happen, you know, it was just something that was devastating. But we've responded really swiftly. We now have the all new Peloton tread out in market. And, you know, we've baked in a number of features that we believe make us the out in front, innovator now in safety for treads. And our team is energized by the notion that, you know, with all of these aspects of the fitness industry where we've been the out in front innovator, our team is energized, that we can now take this charge and become, you know, the far ahead runner in everything safety related for innovation in fitness. BOORSTIN: So looking at that moment of being able to turn a crisis into an opportunity for transformation, you also had an example of something much smaller, of course, though, with the marketing issue around the Peloton ad for holiday 2019 which upset a lot of people. You shifted gears after that marketing mishap some would say, and really shifted on consumer stories, real stories of Peloton users. I’m wondering what your advice would be to startups or to companies in general about how to use crisis as an opportunity for positive change? CORTESE: You know, I almost forgot about that ad after everything that's happened in the last three years. I’ve got to say, I really think we were misunderstood on that one. But we won’t relitigate the past. Misunderstood or not, it clearly didn't resonate and that was something that was quite obvious to us and our team. And so we turned around and we said, alright, we had something that we meant, it didn't come across clearly. You know, let's regroup and as we regroup, you know, that’s what we came back to. We said look, let's get back to just allowing the story to tell itself. We know that folks who have Peloton, love their Peloton. Let’s let them tell the stories. And let that be known. So, you know, these type of mishaps happen, right. And we obviously didn't get all tangled in and out about it, we picked up and we were on to the next. BOORSTIN: Yeah certainly every crisis is an opportunity for reflection and positive change, neither of those two issues seem to have been holding back Peloton at all. Really remarkable growth for your company. Tom Cortese, thank you so much for joining us today to talk about Peloton’s journey and what's ahead. Updated on Oct 21, 2021, 4:05 pm (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalkOct 21st, 2021

Futures Flat As Bitcoin Nears All-Time High, Yen Tumbles To 4 Year Low

Futures Flat As Bitcoin Nears All-Time High, Yen Tumbles To 4 Year Low US index futures were little changed as investors weighed the start of the earnings season against growing stagflation, tightening, energy crisis, China property and supply risks. S&P 500 futures were flat after the cash index edged closer to a record on Tuesday, rising above 4,500. Contracts on the Nasdaq 100 were also unchanged after the main index rallied for the past five days. At 7:30 a.m. ET, Dow e-minis were down 8 points, or 0.02%, S&P 500 e-minis were down 1 point, or 0.03%, and Nasdaq 100 e-minis were up 5 points, or 0.03%. Oil was down and the dollar steadied. Bitcoin traded just shy of its all time high overnight, and was last seen around $64,000. The S&P closed higher on Tuesday with the biggest boosts from the technology and healthcare sectors amid optimism about solid third-quarter earnings season. The index is just 0.4% below its early September record close, while the Dow Jones Industrials average is 0.5% below its all-time high reached in mid-August. "Earlier this month, stagflation was the buzzword on Wall Street. But now excessive pessimism is receding, especially after strong U.S. retail sales data on Friday," said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities. "Tech shares and other high-growth shares that would have been sold on rising bond yields are rallying, which clearly shows that there is now strong optimism on upcoming earnings." The positive mood saw U.S. bond yields rising further, with the 10-year U.S. Treasuries yield climbing to 1.67% , a high last seen in May. Shorter yields dipped, however, with the two-year yield slipping to 0.404% from Monday's peak of 0.448% as traders took profits for now from bets that the U.S. Federal Reserve will turn hawkish at its upcoming policy meeting in early November. Investors expect the Fed to announce tapering of its bond buying and money markets futures are pricing in one rate hike later next year. "The Fed is likely to become more hawkish, probably tweaking its language on its assessment that inflation will be transient. While the Fed will maintain tapering is not linked to a future rate hike, the market will likely try to price in rate hikes and flatten the yield curve," said Naokazu Koshimizu, senior strategist at Nomura Securities. In premarket trading, Tesla edged 0.4% lower in the run up to its quarterly results after markets close, with investors awaiting details on its performance in China. Anthem rose 0.6% as the second largest health U.S. insurer raised its profit outlook for 2021 after beating third-quarter profit estimates. United Airlines Holdings gained 1.6% after the carrier reported a smaller quarterly loss than a year ago on travel rebound. Ford gained 1.9% after Credit Suisse upgraded the U.S. automaker’s stock to ‘outperform’ on EV transition. Oil majors Exxon Mobil and Chevron Corp slipped 0.7% and 0.6%, respectively, tracking crude prices. Meanwhile, Chinese technology ADRs climbed as jitters in the wake of President Xi Jinping’s regulatory crackdowns fade. Netflix’s global sensation “Squid Game” helped lure more customers than expected, the world’s largest streaming service said as it predicted a packed lineup would further boost signups through the end of the year. Its shares, however, fell 2.7% after hitting a record high earlier this month and gaining 18.2% year-to-date. Here are some of the other biggest U.S. movers today: Chinese tech stocks listed in the U.S. rally in premarket with Hong Kong peers as jitters in the wake of President Xi Jinping’s regulatory crackdowns fade; Pinduoduo (PDD US) +1.7%; Didi (DIDI US) +1.3% Alibaba (BABA US) jumped 6.7% in Hong Kong after reports that founder Jack Ma has traveled abroad for the first time in a year United Airlines (UAL US) gains 2% in U.S. premarket trading after the airline posted a narrower loss than expected despite the impact of the coronavirus delta variant. Cowen notes that 3Q was better than expected and also ahead of management’s last guidance from early September Novavax (NVAX US) shares fall as much as 25% in U.S. premarket trading after Politico reported a potential delay in registering its Covid-19 vaccine candidate with the U.S. Food and Drug Administration in connection with inadequate purity levels Vinco Ventures (BBIG US) shares slump 15% in premarket trading after the company reported the resignations of Chief Executive Officer Christopher Ferguson and Chief Financial Officer Brett Vroman Ford (F US) shares gain 1.7% premarket after Credit Suisse upgrades to outperform with joint Street-high target of $20 following a significant turnaround over the past year Stride (LRN US) gained 7.9% Tuesday postmarket after the education company forecast revenue for the full year that beat the highest analyst estimate WD-40 (WDFC US) sank 10% in postmarket trading after forecasting earnings per share for 2022 that missed the average analyst estimate Omnicom (OMC US) fell 3% in postmarket trading after third quarter revenue fell short of some analyst estimates Canadian National (CNI US) U.S.-listed shares rose 4.6% in postmarket trading after reporting adjusted earnings per share for the third quarter that beat the average analyst estimate Akero Therapeutics (AKRO US) shares rose as much as 12% in Tuesday extended trading after co. said the U.S Verizon Communication, Abbott Laboratories, Tesla Inc, Kinder Morgan and IBM are set to report their earnings later in the day.  Analysts expect S&P 500 earnings to rise 32.4% from a year earlier, according to Refinitiv data, while also keeping a close eye on growth outlook from companies that are faced with rising costs, labor shortages and supply chain disruptions. “Investor response to the latest set of earnings reports has been a touch hit and miss with supply chain issues dogging both Procter and Gamble and Philip Morris,” wrote Danni Hewson, financial analyst at AJ Bell in a client note. “After six quarters of beating earnings expectations, the focus may now shift to forward guidance for 2022 and away from the likely better than expected results for this quarter,” Clive Emery, a multi asset fund manager at Invesco said in a note. “If CEOs are more conservative, this could dent market pricing – especially after such strong moves in equity markets over the last 18 months.” In Europe, stocks were also little changed as gains in food and beverage stocks offset losses in miners which are some of the region’s steepest decliners as base metals slip after China launched a blitz of measures to tackle the energy crisis. The Stoxx Europe 600 basic resources index drops 2% as of 10:56am in London, worst performance among Stoxx 600 sectors. Here are some of the biggest European movers today: Falck Renewables shares rise as much as 15% after Infrastructure Investments Fund agreed to buy Falck SpA’s 60% stake in the company at EU8.81/share. IIF will launch a mandatory cash tender offer for Falck Renewables’ remaining share capital after the transaction. Husqvarna shares advance as much as 7.7%, the most intraday since May 2020, after reporting 3Q operating profit that Pareto Securities says is “substantially” stronger than expected. Getinge shares jump as much as 8.1% to a record high, leading the OMX Stockholm 30 index, after 3Q earnings which Handelsbanken (hold) says showed “impressive” order intake and operating leverage. Deliveroo shares jump as much as 4.9% to their highest level since Sept. 30, after the U.K. online food delivery firm hikes its growth forecast, which Jefferies says is an “aspiration” for players in the sector. Nestle shares advance as much as 3.9% after the world’s largest food company increased its sales outlook for the year. This along with the lack of a negative margin update “should be enough to reassure,” according to Citigroup. AutoStore Holdings shares jumped as much as 15% in its Oslo trading debut after pricing shares at the top end of the marketed range as an online shopping boom and labor shortages drive up demand for its automated warehouse robots. Kering SA shares tumbled as much as 5.8% after slowing growth at Gucci, its biggest brand, put more pressure on the label’s new collection to deliver a strong holiday season. Antofagasta shares slump as much as 6.3%, most intraday for two months, after the miner guides for lower copper production next year. Citi and Morgan Stanley analysts say 2022 outlook came in below expectations Kuehne + Nagel shares fall as much as 4.7% to their lowest level in five months after working- capital concerns outweighed a 3Q earnings beat for Swiss logistics operator. Earlier in the session, Asian stocks advanced with Hong Kong-listed tech shares extending their rally to a fourth day, buoyed by encouraging U.S. earnings and growing optimism that the strictest of China’s new regulations on tech firms may already be announced.  The MSCI Asia Pacific Index rose as much as 0.7%, powered by Alibaba Group Holding Ltd., which closed up 6.7%. The equity gauge also climbed after Johnson & Johnson raised its profit forecast and Netflix Inc. reported a jump in subscribers. Hong Kong and Australia were among the top-performing markets.  “Asian stocks appear to be taking their cue from the U.S. earnings season and are being bought on the back of the nascent technical confirmation,” said Justin Tang, the head of Asian research at United First Partners. The regional benchmark has gained 5% over the past two weeks as the earnings season progresses and inflation and supply chain worries ease. The measure is close to surpassing its 100-day moving average. Coal stocks listed in mainland China slumped after the nation’s top economic planner said it’s studying ways to intervene in the coal market as the government tries to rein in rising prices and curtail shortfalls. Meanwhile, expectations are falling that China’s central bank will ease monetary policy by cutting the amount of cash banks have to hold in reserve, according to a front-page story from the central bank’s own newspaper. Japanese equities eked out a second day of gains, driven by advances in telecommunications providers. Banks were also among the biggest boosts to the Topix, which rose less than 0.1%. SoftBank Group and Fast Retailing were the largest contributors to a 0.1% gain in the Nikkei 225. U.S. equities extended a rally on Tuesday as solid corporate results helped counter concerns stemming from elevated inflation. In Australia, the S&P/ASX 200 index rose 0.5% to 7,413.70, its highest close since Sept. 16. Banks boosted the index as a subgauge of financials hit a four-year peak. Kogan.com rallied after the company reported gross sales for the first quarter of A$330.5 million vs. A$273 million y/y. Whitehaven plunged after China’s top economic planner said it is studying ways to intervene in the coal market as the government tries to rein in rising prices and curtail shortfalls. In New Zealand, the S&P/NZX 50 index rose 0.4% to 13,114.24 In FX, the Bloomberg dollar index is little changed in London trade following yesterday’s slide and the greenback traded mixed against its Group-of-10 peers. The Treasury curve held on to yesterday’s steepening as the 2-year yield fell a second day, while the 10- year yield was steady after earlier rising to 1.67% for the first time since May. Norway’s krone was the worst G-10 performer as it fell from the European open, after yesterday reaching a four-month high versus the dollar. The pound slipped, reversing modest gains, after the U.K.’s September inflation reading came in lower than expectations; still, it’s well beyond the Bank of England’s target and it’s the last before the rate decision in November. Australia’s led G-10 gains and the sovereign bond curve bear steepened, tracking yesterday’s Treasury moves. The yen fell to weakest level in almost four years as traders added to bets on Fed rate hikes and rising oil prices boosted concern about the Japanese trade deficit. China’s offshore yuan extends its overnight softness after a weaker than expected fixing, with USD/CNH 0.25% higher. In rates, treasuries were narrowly mixed and off lows reached during Asia session after being led higher during European morning by gilts, where short maturities outperform. The 10-year TSY yield touched 1.67%, the highest level since May. The treasury futures rally stalled after a block sale in 10-year contracts, apparently fading strength. Treasury curve pivots around a little-changed 10-year sector, with front-end yields slightly richer on the day, long-end slightly cheaper; 5s30s, steeper by 2bp, extends rebound from Monday’s multimonth low; U.K. 10-year yield is lower by nearly 4bp. U.S. session includes 20-year bond auction.   Bunds and gilts ground higher in quiet trade, with curves having a small steepening bias. Long end USTs cheapen 1bp, gilts richen ~2.5bps at the short end. Peripheral spreads are marginally tighter to Germany. Italy’s green BTP syndication is well received with final books over EU48b. European equities fade a small opening dip to trade little changed. Price action is quiet, V2X drops toward 16 In commodities, crude futures drift lower. WTI drops 0.9% near $82.20, Brent is 1% lower holding above $84. Spot gold slowly extends Asia’s gains, rising $9 to trade near $1,780/oz. Most base metals are under pressure with LME copper and aluminum underperforming peers. In cryptocurrencies, bitcoin stood at $64,068, near its all-time peak of $64,895 as the first U.S. bitcoin futures-based exchange-traded fund began trading on Tuesday Looking at the day ahead now, and data releases include the UK and Canadian CPI readings for September, alongside the German PPI reading for the same month. From central banks, the Fed will be releasing their Beige Book, and we’ll hear from the Fed’s Bostic, Kashkari, Evans, Bullard and Quarles, as well as the ECB’s Villeroy, Elderson, Holzmann and Visco. Finally, today’s earnings releases include Tesla, Verizon Communications, Abbott Laboratories, NextEra Energy and IBM. Market Snapshot S&P 500 futures little changed at 4,509.50 MXAP up 0.4% to 200.82 MXAPJ up 0.5% to 661.79 Nikkei up 0.1% to 29,255.55 Topix little changed at 2,027.67 Hang Seng Index up 1.4% to 26,136.02 Shanghai Composite down 0.2% to 3,587.00 Sensex down 0.6% to 61,343.39 Australia S&P/ASX 200 up 0.5% to 7,413.67 Kospi down 0.5% to 3,013.13 STOXX Europe 600 little changed at 468.88 German 10Y yield rose 8.5 bps to -0.115% Euro little changed at $1.1628 Brent Futures down 0.9% to $84.32/bbl Gold spot up 0.5% to $1,777.33 U.S. Dollar Index little changed at 93.80 Top Overnight News from Bloomberg Business Secretary Kwasi Kwarteng said there won’t be a fresh lockdown of the U.K. economy even as Covid-19 cases tick upwards and Prime Minister Boris Johnson warns of a difficult winter ahead The recovery in France and in Europe “remains very strong,” Bank of France Governor Francois Villeroy de Galhau says on Wednesday during a National Assembly finance committee hearing The yen’s tough year is only going to get tougher as a rising tide of oil prices and global yields threatens to send Japan’s currency past 115 per dollar for the first time since 2017 PBOC Deputy Governor Pan Gongsheng says financial activities by China’s property sector and financial market prices are gradually becoming normal, China Business News reports, citing a speech at a forum in Beijing Sinic Holdings Group Co. became the latest Chinese real estate firm to default as investors wait to see whether China Evergrande Group Inc. will meet overdue interest payments on dollar bonds this week A more detailed look at global markets from Newsquawk Asian equity markets traded mostly positive as the region took its cue from the extended gains on Wall Street where sentiment was underpinned amid encouraging earnings results and with some hopes for a breakthrough on reconciliation as the White House and Democrats continued deliberations. ASX 200 (+0.5%) was led higher by outperformance in tech and with nearly all of its sectors in the green, while there were also gains seen in some of the blue-chip miners and across the big four banks. Nikkei 225 (+0.1%) was lifted by the weaker currency and following better than expected Exports and Imports data, although the index stalled just shy of the 29.5k level, while KOSPI (-0.5%) failed to hold on to opening gains with confirmation from North Korea that it fired a new submarine launched ballistic missile on Tuesday. Hang Seng (+1.4%) and Shanghai Comp. (-0.1%) were varied whereby Hong Kong was boosted by tech and health care with Alibaba leading the advances after it recently unveiled China’s most advanced chip and with its founder Jack Ma travelling abroad for the first time in over a year who is currently on a study tour in Spain. Conversely, the mainland was subdued alongside weakness in domestic commodity prices and despite a firmer liquidity effort by the PBoC, while the central bank provided no surprises in maintaining its benchmark Loan Prime Rates unchanged for the 18th consecutive month and a PBoC-backed paper also noted that expectations for a RRR cut during Q4 have eased. Finally, 10yr JGBs were lower amid spillover selling from global peers and recent curve steepening in US which desks attributed to positioning and upcoming supply, although the downside for JGBs was limited by the presence of the BoJ in the market for nearly JPY 1.4tln of JGBs heavily concentrated in 1yr-10yr maturities. Top Asian News Abu Dhabi’s Top Fund Backs Indonesia’s Largest Internet Firm Singapore Category E COE Price Rises to Highest Since Oct. 2013 China’s Liu He Says Property Market Risks Are Controllable: 21st Rio’s New CEO Starts Turnaround With $7.5 Billion Climate Pledge It’s been a choppy start to the session for European equities (Euro Stoxx 50 flat; Stoxx 600 flat) as opening losses were quickly trimmed after the cash open. Stocks in Europe were unable to benefit from the constructive APAC handover, which itself benefitted from a strong Wall St close as stocks in the US gained for a fifth consecutive session. As it stands, US equity index futures are relatively flat as indices succumb to the choppy price action with events on Capitol Hill not providing much guidance for price action as lawmakers strive to reach a deal on spending by the end of the week. Back to Europe and sectoral performance is somewhat mixed with clear outperformance in the Food & Beverage sector as earnings from Swiss heavyweight Nestle (+3.2%) provides support and prompts upside in the SMI (+0.7%). Nestle reported a beat on 9M revenues and raised FY guidance amid performance of coffee and pet food sales, whilst noting that it increased pricing in a “responsible manner” during Q3. Elsewhere in Switzerland, Roche (-1.0%) also beat on revenues and raised guidance but was unable to benefit from a lift in its share price. To the downside, Basic Resources lag amid softness in some base metals prices as well as a production update from Antofagasta (-4.2%) and a broker downgrade for Rio Tinto (-4.0%). Retail names are also trading on a softer footing after Q3 earnings from Kering (-4.0%) saw the Co. report a decline in consolidated revenues and note that performance for Gucci was hit by a resurgence of COVID-19 cases in Asia. H&M (-2.7%) is also weighing on the sector after a broker downgrade at Morgan Stanley. Elsewhere, Deliveroo (+3%) is seeing upside today after the Co. upgraded Gross Transaction Value (GTV) growth guidance. Additionally, in what has been a tough week for the Co., IAG (-3.6%) is seeing further losses after being downgraded at Peel Hunt. Finally, updates from the likes of materials name Akzo Nobel (supply chain woes) and semiconductor ASML (revenues fell short of expectations) have sent their shares lower by 1.5% and 1.7% respectively. Top European News Weidmann to to Step Down as Bundesbank Chief at End of Year Credit Suisse Dodges Bigger Fine With Debt-Forgiveness Vow Vinci Up After Reporting Higher 9m Sales; Guidance Confirmed Covid Tests Boost Roche Growth Once Again, Lifting Outlook In FX, the Index has recovered from yesterday's decline, which saw a base at 93.500 – matching the 32.8% Fib retracement of the September move, with the Index now eyeing the 21 DMA at 93.917 ahead of 94.000. The main stateside development has been on the fiscal front, where President Biden told Democrat lawmakers he believed they could secure an agreement for a tax and spending proposal valued at USD 1.75tln-1.90tln, whilst US progressive Democratic Rep. Jayapal said she feels even more optimistic after the White House meeting. As Republicans fully opposed Biden's plans, all Democrat votes are needed in the Senate, whilst only a few can be spared in the House. As a reminder, Congress set an Oct 31st deadline for the passage. Negotiations are expected to wrap up as soon as this week. Ahead, the stateside docket is quiet aside from several Fed regulars after the European close. NZD, AUD, CAD - The Kiwi stands as the current outperformer in a continuation of the strength seen as bets mount for a steeper RBNZ OCR hike at the upcoming meeting in light of the CPI metrics earlier this week. The NZD/USD pair also sees some technical tailwinds after failing to convincingly breach 0.7150 to the downside overnight. AUD/USD meanwhile eyes 0.7500 to the upside from a 0.7466 base with some potential support seen as China taps into Aussie coal amid surging demand. USD/CAD dips below 1.2350 but remains within yesterday's 1.2309-76 range ahead of Canadian CPI later – with headline Y/Y expected to tick higher to 4.3% from 4.1%. EUR, GBP - Both flat vs the Dollar and against each other. Sterling saw some mild weakness as UK CPI narrowly missed expectations at 3.1% vs exp. 3.2% for the headline Y/Y, in turn prompting market pricing to ease a touch as the dust settled – with the implied rate for the 4th Nov meeting modestly under 25bps vs 25.71bps heading into the release. That being said, the slight miss is likely not to provide enough ammunition for the BoE doves, whilst the hawks will likely continue to warn the dangers of persistently high inflation – ultimately not settling the debate on the MPC regarding how soon it should raise rates. GBP/USD fell back under its 100 DMA (1.3805) from a 1.3814 high. From a technical standpoint, aside from yesterday's 1.3833 peak, the pair sees the 200 DMA at 1.3846. EUR/USD meanwhile rebounded off its 21 DMA (1.1615) but remains under 1.1669 high, having seen little reaction to the unrevised Y/Y final EZ CPI metrics, although the M/M metrics were revised slightly higher as expected. Elsewhere, it is worth noting that ECB-hawk Weidmann has submitted his resignation to the Bundesbank and the ECB ahead of next week's Governing Council confab. JPY - The JPY is relatively flat intraday, but overnight price action was interesting as USD/JPY drifted to a high of 114.69, with participants recently flagging barriers just ahead of 115.00. Some have also cited Gatobi demand, where accounts In commodities, WTI and Brent Dec futures are marginally softer on the day in a continuation of the downward trajectory during US hours yesterday. WTI has dipped below USD 82/bbl (vs high USD 82.60/bbl) while its Brent counterpart hovers around USD 84.50/bbl (vs high USD 85.20/bbl). The subdued prices come amid a larger-than-expected build in Private inventories, although the internals were bullish, with the DoEs headline expected to print a build of some 1.8mln bbls. Elsewhere, the Iraqi energy minister has been vocal throughout the session, saying he expects oil prices to reach USD 100/bbl in Q1 and Q2 2022 – in contrast to comments he made last week which suggested that oil price is unlikely to increase further; whilst he also recently noted oil prices between USD 75-80/bbl is a fair price for producers and consumers. The Iraqi minister today said it is preferable for long-term oil prices between USD 75-85/bbl, and OPEC+ is now discussing ways to balance oil prices but no decision has yet been made to add more production above the agreed levels. Elsewhere, following India’s call on OPEC yesterday to lower prices, India’s HPCL executive says current oil prices are high for India; USD 60-70/bbl is comfortable and high oil prices may impact demand growth. Over to metals spot gold resides around its 50 DMA at USD 1,778/oz while spot silver eyes USD 24/bbl to the upside. Overnight, China’s coal intervention saw prices slump – with thermal coal futures hitting limit down and coke futures opening lower by 9%. LME copper prices are also softer, with the contract briefly dipping under USD 10k/t overnight. US Event Calendar 7am: Oct. MBA Mortgage Applications, prior 0.2% Oct. 20-Oct. 22: Sept. Monthly Budget Statement, est. -$59b, prior -$124.6b 2pm: U.S. Federal Reserve Releases Beige Book DB's Jim Reid concludes the overnight wrap Whilst inflation concerns are still very much bubbling under the surface of markets, risk appetite strengthened further yesterday thanks in no small part to decent earnings reports. There are no signs of widespread erosions of margins at the moment. Perhaps there is so much money sloshing about that for now prices are broadly being passed on. We’ll get a better picture of this as the earnings season develops. Indeed, the selloff from September feels like an increasingly distant memory now, with the S&P 500 (+0.74%) advancing for a 5th consecutive session to leave the index just 0.38% beneath all-time closing high from early September. Earlier Europe’s STOXX 600 (+0.33%) also moved higher. In the US, earnings supported sentiment yet again. 10 of the 11 companies reporting during New York trading beating estimates, whilst all 4 of the after-hours reporting beat as well. That brings the total number of reporters for the season thus far to 57, 50 of whom have beat earnings expectations. Most sectors were higher yesterday, with health care (+1.31%), utilities (+1.26%), and energy (+1.14%) leading the way; only consumer discretionary (-0.29%) lagged. We even saw the FANG+ index (+1.56%) of megacap tech stocks hit a new record ahead of Tesla’s earnings today, whilst the NASDAQ (+0.72%) was also up for a 5th consecutive session. Equities may be brushing off the inflation stories for now but they are hardly going away, as yesterday saw oil prices climb to fresh multi-year highs. Brent Crude was up +0.89% to close above $85/bbl for the first time since 2018, whilst WTI (+0.63%) similarly advanced to close just shy of $83/bbl, a mark not reached since 2014. And investor expectations of future inflation are still moving higher in many places, with the Euro Area 5y5y forward inflation swap up +4.0bps to 1.90%, also the highest level since 2014. Against this backdrop, sovereign bonds continued to selloff on both sides of the Atlantic, even though investors slightly pared back some of their Monday bets on near-term rate hikes by the Fed and the BoE. 10yr yields moved higher across the board, with those on Treasuries up +3.7bps to 1.64%, their highest closing level since early June, just as those on bunds (+4.3bps), OATs (+4.3bps) and BTPs (+4.8bps) similarly moved higher. It was a more divergent picture at the 2yr horizon however, with those on 2yr Treasuries down -3.0bps after five days of increases, whereas those on gilts were up +1.0bps. Watch out for UK inflation numbers shortly after this hits your inboxes although this may be the calm (due to base effects) before the inflationary storm in the coming months. From central banks, we had the latest global hike yesterday in Hungary, where the base rate was raised by 15bps to 1.80%, in line with consensus expectations, with Deputy Governor Virag saying afterwards that this monetary tightening was set to carry on into next year. However, we did get some pushback to recent market pricing from ECB chief economist Lane, who said that “If you look at market pricing of the forward interest rate curve, I think it’s challenging to reconcile some of the market views with our pretty clear rate forward guidance”. This didn’t really hit fixed income but it did see the euro pare back some of its gains against the US dollar yesterday, ending the session up just +0.08%, down from an intraday high of +0.51%. Asian equities have followed those moves higher overnight, with the Hang Seng (+1.71%), Nikkei (+0.27%), CSI (+0.08%) and Shanghai Composite (+0.03%) all trading higher, although the KOSPI (-0.11%) has lost ground. China’s property market continues to be in focus after home prices fell -0.08% in September, which is their first monthly decline since April 2015. Separately, Chinese coal futures (-8.00%) have snapped a run of 8 consecutive gains this morning after the country’s National Development and Reform Commission said that it wanted to ensure a rise in coal output to 12m tons per day, and that they would also be looking at other measures to intervene in the market. Outside of Asia, equity futures are pointing slightly lower, with those on the S&P 500 down -0.03%. The pandemic hasn’t been a major influence on markets in recent weeks but there may be some initial signs that the global decline in cases that we’ve seen since late August has stopped. Looking at data from John Hopkins University, the rolling weekly change in confirmed cases has ticked up on each of Saturday, Sunday and Monday. And although we shouldn’t over-interpret a few days’ numbers, we had already seen the rate of decline slow for 3 successive weeks now, which was probably to be expected given the time of year. We’re certainly coming up to a key period where a more indoor northern hemisphere life will combine with waning vaccine effectiveness to test the resolve of the authorities to maintain relatively restriction-free economies. Boosters may be key here. Once we get past this winter things may get easier particularly with new medicines in the pipeline like the viral pill from Merck that trials showed reduced hospitalisations and deaths by around half. On the data front, US housing starts fell to an annualised rate of 1.555m in September (vs. 1.615m expected), whilst building permits also fell to an annualised rate of 1.589m (vs. 1.680m expected). The previous month’s numbers were also revised down for both. Finally in the US, after an acrimonious weekend, Senators Sanders and Manchin expressed optimism they could agree on a framework for the next reconciliation bill by the end of the week in bilateral negotiations, which is set to contain a number of President Biden’s key legislative goals. To the day ahead now, and data releases include the UK and Canadian CPI readings for September, alongside the German PPI reading for the same month. From central banks, the Fed will be releasing their Beige Book, and we’ll hear from the Fed’s Bostic, Kashkari, Evans, Bullard and Quarles, as well as the ECB’s Villeroy, Elderson, Holzmann and Visco. Finally, today’s earnings releases include Tesla, Verizon Communications, Abbott Laboratories, NextEra Energy and IBM. Tyler Durden Wed, 10/20/2021 - 07:59.....»»

Category: smallbizSource: nytOct 20th, 2021