Hi Inside Community, Today we hosted one of our best AMA interviews yet — this time with Jason Fried, the founder and CEO of 37signals. (You’ve probably heard of his products Basecamp and HEY, if you haven’t used them yourself.) Jason is a founder and executive with more than two decades of experience, making this a golden opportunity to ask him about his work with startups, product, and everything else he has done along the way. The AMA kicked off at 11 a.m. PDT, and it’s already packed with insights and answers. —The Inside Team | |  Vanessa |  |
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Airbnb released its Q2 earnings on Tuesday, reporting its most profitable quarter to date. The company recorded $2.1B in revenue, up 58% YoY. Net income came in at $379M, or 56 cents a share, up from a loss of $68M reported last year. Airbnb recorded its largest Nights and Experiences Booked in a quarter at 103.7 million, up 25% YoY, but fell short of analysts’ estimates of 106.4 million. The company said it saw some elevated booking cancellations towards the end of the quarter, pointing to global flight cancellations during that period. More: - Airbnb’s Gross Booking Value (GBV) was $17B, up 27% YoY.
- The company said it broke its single-day revenue record on July 4.
- Long-term stays, 28 days or more, remains Airbnb’s fastest-growing segment, up 25% YoY and up 90% from Q2 2019.
- Airbnb said nights booked for cross-border travel surpassed pre-pandemic levels and doubled compared to last year.
- The company announced a $2B share repurchase program, noting its capital allocation ranking: investments in organic growth, strategic acquisitions, and return of capital to shareholders.
- Airbnb shares fell ~9% in after-market trading on Tuesday. It closed at $115.02 on Wednesday, down ~1%.
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Korean semiconductor chip makers Samsung Electronics and SK Hynix are reviewing the impact of the recently approved U.S. Chips Act on their respective investments in China. Last week, Congress passed the Chips and Science Act, which has $52B in grants earmarked for advanced chip manufacturing in the U.S. Companies receiving federal grants under the Act are prohibited from upgrading their China-based chip manufacturing facilities for 10 years. More: - The Act includes export control and investment screening safeguards in a bid to protect its advanced semiconductor technology from leaking beyond national borders.
- Over time, some Korean companies are likely to exit their chip production setup in China.
- According to Korean government semiconductor policy advisor Kim Young-woo, several firms are tilting further to the U.S. due to geopolitical risks.
- Kim anticipates that several Korean chip makers will set up additional manufacturing facilities in the U.S., as “they cannot mass-produce cutting-edge chips without U.S. equipment and technology.”
- Earlier this year, Samsung announced a $17B investment in a new chip plant in Texas.
- Last month, SK Hynix parent SK Group announced plans for a new facility in the U.S. with an investment of $22B.
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Yum Brands released its Q2 earnings on Wednesday, missing EPS expectations. Adjusted EPS came in at $1.05 per share, down 9% YoY, against analysts’ predictions of $1.09 per share. The company reported $1.64B in revenue, up 2% YoY, driven by 6% growth in same-store sales globally, excluding China. Net income was $224M, down from $391M reported last year. More: - China’s pandemic-induced lockdown slowed global same-store sales growth to 1%.
- Taco Bell’s same-store sales grew 8% as a result of higher menu prices, while KFC and Pizza Hut divisions saw declines of 1% and 3%, respectively.
- Sales for KFC and Pizza Hut in China dropped by 7% and 14%, respectively.
- Yum said it is close to shutting down all its operations in Russia.
- It sold its Pizza Hut business to a local operator in June and noted the transfer of ownership for its KFC business is underway.
- In the quarter, the fast food company closed 1,165 restaurants in Russia.
- Globally, Yum Brands opened 463 new units in the quarter.
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PayPal reported stronger than expected earnings during the second quarter. Adjusted EPS for the quarter came at $0.93 per share, above analysts’ expectations of $0.86 per share. The company reported net revenue of $6.8B, up 9% YoY. Net loss for the quarter amounted to $341M, a stark contrast to the same period a year ago when it reported $1.18B in profit. PayPal revised its earnings guidance for the year between $3.87 to $3.97 per share, up four cents from its original estimate. More: - Elliot Management took a $2B stake in the firm in July.
- Currently, PayPal is on track to save $900M in cost reduction efforts this year, which should result in annual savings of $1.3B in 2023.
- PayPal anticipates fiscal year revenues to reach $27.9B this year.
- PayPal announced a $15B share buyback program, with $4B expected in share repurchases in FY’22.
- PayPal’s shares rose 13% in extended trading on Tuesday; it is down 52% YTD.
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Hong Kong-based fintech company AMTD Digital stock has risen more than 21,000% since its IPO in mid-July. The firm markets itself as Asia’s one-stop comprehensive digital solutions platform. Its market cap surpassed $300B on Tuesday, making it the fifth largest financial company in the world, behind Berkshire Hathaway, JPMorgan Chase, Bank of America, and Industrial & Commercial Bank of China. More: - Analysts are not sure what is driving the stock price surge, with many pointing to similarities with the GameStop trading mania in 2021.
- AMTD Digital had its IPO on July 15 at $7.80 a share; it was trading as high as $2,555 on Tuesday.
- Its ADRs trade on the NYSE under the ticker HKD.
- AMTD Digital shares rose over 120% on Tuesday after experiencing several trading halts.
- It was the fourth most purchased stock on Fidelity’s trading platform on Wednesday.
- According to a regulatory filing, AMTD Digital earned only $25M in revenue for the year ended April 2021.
- AMTD share’s closed at $1,100 on Wednesday, down ~50%. It was up ~13% in after-hours trading.
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Match Group, the parent of dating platforms Tinder and Hinge, reported its Q2 earnings on Tuesday, missing analysts’ expectations on revenue. The company earned $795M in revenue, up 12% YoY. The company recorded a net loss of $31.9M, or 11 cents per share, compared to an income of $140.9M reported last year. Match reported Free Cash Flow of negative $7M, citing a $441M payment related to a previously disclosed Tinder litigation settlement. More: - Total paid users grew 10% to 16.4 million, driven mainly by Tinder.
- Total revenue per user was $15.86, up 3% YoY.
- Tinder revenue grew 13% YoY.
- Match gave a weaker than expected guidance for Q3, expecting $790M to $800M, representing flat growth for the quarter.
- Match shares fell over 20% in after-market trading on Tuesday.
- It closed at $63.24 on Wednesday, down ~17.6%.
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- OPEC+ agreed to increase oil output by 100,000 barrels a day, its smallest production increase in the group’s history.
- MicroStrategy announced on Tuesday that its founder and CEO, Michael Saylor, will step down from the role of CEO and take on the role of executive chairman, focusing on the company’s Bitcoin strategy. MicroStrategy’s president Phong Le will take over the role of CEO.
- Airbus has canceled the remaining of its A350 jet deal with Qatar Airways. The two companies have been in conflict for months over the poor conditions of more than 20 A350 jets Qatar said it received from Airbus. Qatar is suing Airbus for at least $1.4B.
- Facebook is shutting down its live video shopping feature on Oct. 1, two years after launching the program. Facebook parent Meta said the company would focus on its short-form video content feature Reels.
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 |  | Vanessa Omeokachie is a Researcher at Inside. Her interests include finance, tech, and startups. In her free time, she enjoys reading, hiking, attending music festivals, and traveling. Connect with her on Twitter @VanessaOmeo or through email at vanessa@inside.com | | | | Editor | Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 Ford. | |
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