$SKLZ was flying today. Easy DD 👇

@gavutaclan @GetBenchmarkCo @ParrotStock @JonahLupton @DaddySpac @MartinDayTrader @NickGreenCC @ThomasVidaI @Jimmyjude13 @SteveHanley19 @balwx @MichaelRippe @THExander03
Business Model

🔥Unique mobile gaming platform, creating a win-win proposition for both gamers and developers. It has a high potential to generate a strong flywheel effect once it kicks off. Unlike other developers/platform, they don’t monetize via ads and in-game purchases
Continued/

🥳They make money by taking a cut from the competitive game played between players. Have a 95% gross margin, and developers get a 25-30% cut of the GMV. They are making the casual games feel competitive and http://skill-based.In  turn, it makes the platform sticky
Continued/They make money by taking a cut from the competitive game played between players. Have a 95% gross margin, and developers get a 25-30% cut of the GMV. They are making the casual games feel competitive and http://skill-based.In  turn, it makes the platform sticky
Continued/They make money by taking a cut from the competitive game played between players. Have a 95% gross margin, and developers get a 25-30% cut of the GMV. They are making the casual games feel competitive and http://skill-based.In  turn, it makes the platform sticky
Industry/

🤩 Mobile gaming is forecasted to grow at 20% (faster than gaming).

The average time spent playing a video game is set to increase 1.1 hours per person to 1.5 hours in 2025.

The gaming industry is very fragmented, and $SKLZ can take advantage of this
Compelling Economics

✅4.7x LTV CAC
✅Low churn Rate
✅95% Gross Profit
✅Large TAM (E-sports)
✅88% sales growth
Strong future Optionality

Brand Sponsored Tournaments 🤑

Their app gets incorporated into Google Play 🤑

International expansion 💸

New game genres (recently announced 3rd person) 💸

Monetize non-paying customer maybe via Ad’s 💲
Have economic MOAT 🏰

👀 Network effect – fragmented market and first mover in e-sports
👀58 patents and billions of data points to catch cheat and frauds. Also, detect if games are skills-based or not.
Apart from Fed we also have company-specific risk here 😮

❌Revenue Concentration Risk – 88% coming from Two developers

“For the 9 months ended September 2020 Tether and Big Run accounted for 63% and 25%, of their revenue”

Two pictures below in their presentation is just BS
Apart from Fed we also have company-specific risk here Revenue Concentration Risk – 88% coming from Two developers“For the 9 months ended September 2020 Tether and Big Run accounted for 63% and 25%, of their revenue”Two pictures below in their presentation is just BS
Apart from Fed we also have company-specific risk here Revenue Concentration Risk – 88% coming from Two developers“For the 9 months ended September 2020 Tether and Big Run accounted for 63% and 25%, of their revenue”Two pictures below in their presentation is just BS
Cash in 690m (SPAC)+ PIPE Proceeds 150m ~ 70% went into Pockets of Selling shareholder. 😡
❌Game quality and diversity is a bit sad
❌Marketing is focused on user acquisition and not developer’s – No flywheel impact!
❌Can large Game Developers will build something similar?
❌Apple’s policy to let cash gaming apps be exempt from the take rate – May impose fees!
Valuation

On Relative metrics (Revenue growth vs Price /Gross Profit 2021) it's still cheap 😋
Intrinsic value ( at current prices expensive) 😢

According to our CAGR sensitivity analysis, if the growth rate increases from 41% to 61%, stock can more than 2X. So not all is lost - it depends if the company executes🤓
Intrinsic value ( at current prices expensive) According to our CAGR sensitivity analysis, if the growth rate increases from 41% to 61%, stock can more than 2X. So not all is lost - it depends if the company executes
Intrinsic value ( at current prices expensive) According to our CAGR sensitivity analysis, if the growth rate increases from 41% to 61%, stock can more than 2X. So not all is lost - it depends if the company executes
If you like this tweet you are going to love our video

Also, join our telegram chat for trade/investment ideas https://t.me/joinchat/J90VAhuJOZsEBhmxJ_26hw

I am also trying to impress my line manager so please RT as well thanks.
MOAT Investing Trading & Investing Club - Hosted by @Tonyhedge

We dig deeper to find disruptive stocks with strong competive advantages at reasonable price.

https://www.youtube.com/watch?v=GiUJ19afYy4&t=1s
You can follow @InvestingMoat.
Tip: mention @twtextapp on a Twitter thread with the keyword “unroll” to get a link to it.

Latest Threads Unrolled:
Those who think consciousness raising & movement building are disconnected, or even a distraction from electoral politics have not paid attention to the history of social change.In this thread, we
Read more
The 2020s will be known as the Remote Work decadeA few predictions of what is likely to emerge[ a thread ] Third Space: Office and Working from Home will
Read more
1/29: Have you ever had a concept explained to you that helps frame complex issues you’ve been wrestling with and opens your eyes to new possibilities? A concept that I
Read more
By continuing to use the site, you are consenting to the use of cookies as explained in our Cookie Policy to improve your experience.