| Here's your daily business briefing. - 📉 Biogen's revenue drops, multiple sclerosis sales decline
- 🔍 Deep Dive: Airbnb CEO plans to diversify as growth slows
- 🎰 ESPN Bet to launch in New York
Thanks for reading! Shriram
p/Shriram | |
| 1 | | Biogen's fourth-quarter revenue fell 6% year-over-year to $2.39B, with adjusted earnings per share at $2.95, below analysts' anticipated $3.18. The decrease was linked to charges related to discontinuing the Alzheimer's drug Aduhelm and declining sales in the multiple sclerosis therapies category. More: - Revenue from products for multiple sclerosis decreased by 8% to $1.17B, while sales of Vumerity came in below projections at $156.4M, and Tecfidera saw a 17.8% decline in revenue to $244.3M.
- Sales of rare illness medications totaled $471.8M, Spinraza brought in $412.6M, and biosimilar medications brought in $188.2M.
- Approximately 2,000 people were receiving Leqembi, the first medication to delay the progression of Alzheimer's disease; nevertheless, this number fell short of the target of 10,000 patients by March 2024.
- Other recently introduced medications include Zurzuvae, which generated sales of about $2M for the period, and Skyclarys, which generated $56M in revenue in the fourth quarter.
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What the numbers say: Airbnb's revenue growth has consistently fallen for the past nine quarters. But it exceeded Q4 revenue expectations at $2.22B and anticipates Q1 2023 revenue between $2.03B and $2.07B. Despite revenue growth, a net loss of $349M in Q4, linked to one-time tax charges from an Italian dispute, was offset by a 12% increase in gross nights and experiences booked, reflecting sustained demand for travel services. Relevance: Airbnb's post-pandemic performance reveals positive and challenging aspects, with CEO Brian Chesky expressing confidence in international market growth. Chesky's strategy involves diversification beyond Airbnb's core business, incorporating AI and third-party services, showcased by a $6B share repurchase program, signaling long-term confidence amid short-term setbacks. More data: Airbnb's strong performance contrasts Expedia Group Inc.'s subdued current-quarter outlook, signaling varying vacation rental and travel trends. The company sees growth potential in regions like Brazil, Asia Pacific, and Europe, driven by events such as the upcoming Paris 2024 Olympic Games. | | | |
| 3 | | ESPN Bet is set to launch in New York, the largest U.S. betting market, as Penn Entertainment ($PENN) acquires Wynn Interactive's ($WYNN) mobile sports betting license for $25M. Despite missing out on licenses awarded in 2021, Penn Entertainment aims to capitalize on New York's thriving online sports betting market, which has seen over $35.7B wagered in the two years since its launch. More: - In mid-November, ESPN Bet debuted in 17 states and rapidly increased its market share, achieving 7.4% in Pennsylvania.
- FanDuel and DraftKings maintain a near duopoly in the national market, with BetMGM and Caesars securing the third and fourth positions.
- However, according to Eilers & Krejcik, ESPN Bet secured an estimated 8% market share upon its November launch, positioning it in third place.
- According to Bank of America analyst Shaun Kelley, ESPN Bet can get an advantage over rivals in the New York sports betting industry by drawing in Taylor Swift fans who watch the NFL.
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| 4 | | Tired of dating apps, many singles are returning to traditional methods, leading to a 42% growth in attendance at dating events in the U.S. in 2023 compared to the previous year, surpassing pre-pandemic levels. Game-based dating events witnessed a significant 163% increase in attendance, while athletic activities like pickleball and spin classes saw a 135% rise. More: - Eventbrite reports a 41% YoY rise in Valentine's Day singles events listed.
- According to Ipsos polling, Baby Boomers were more likely to meet their partners through setups or at work, 45%, in contrast to Millennials and Gen Z, where only 26% followed a similar pattern.
- Pew indicates that despite the widespread usage of online dating, individuals' opinions are split, with 53% reporting favorable experiences and 46% reporting negative ones.
- Match Group and Bumble saw notable increases during the pandemic, but since then, their stocks have declined; since 2021, Match Group shares have lost around 80% of their worth.
- Dating apps, including Bumble and Match, are responding to the rise in in-person meetups by introducing initiatives such as Bumble IRL and features like 72 Hours to promote offline interactions.
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| 5 | | Robinhood Markets ($HOOD) surprised investors with a Q4 profit of $0.03 per share, beating the expected $0.01 loss, driven by higher interest income and increased trading activity. Shares rose 10% in extended trading, and CFO Jason Warnick focused on "profitable growth" in 2024, citing factors like net deposit growth and increased adoption of premium services. More: - For the year 2024, Robinhood hopes to increase its margin and maintain a flat to slightly higher headcount.
- Robinhood's net interest income climbed to $236M during the quarter from $167M the previous year.
- The trading of cryptocurrencies was the main driver of the 8% annual growth in transaction-based revenues, which reached $200M.
- The average revenue per user (ARPU) grew by 23% despite a 4% decrease in monthly active users (MAU), helping the company's revenue expand to $471M, above forecasts.
NOTE: Inside.com founder and CEO Jason Calacanis is an investor in Robinhood. | | | |
| 6 | | Cybersecurity startup Armis is acquiring threat intelligence firm CTCI, known for utilizing AI to deploy simulated systems, or "honeypots," to attract hackers. The acquisition, valued at under $20M, aligns with Armis' strategy to enhance its product portfolio through strategic acquisitions. More: - San Francisco-based Armis achieved a valuation of $3.4B following a $300M funding round in 2021.
- Armis intends to integrate its data with CTCI's technology to improve the efficiency of its honeypots, creating an advanced early warning system.
- The early warning system aims to notify customers of new risks. It is built on the combination of Armis and CTCI technologies.
- Armis intends to charge users a yearly fee for the early warning system; negotiations are still going on about the best price structure.
- When discussing the purchase, CEO Yevgeny Dibrov hinted at potential future acquisitions that would expand Armis' offering with a predictive threat intelligence platform.
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| 7 | | Quick Hits: - If your business accepted Visa or MC from Jan. 1, 2004, to Jan. 25, 2019, you may be entitled to a share of the historic $5.6B settlement.*
- Super Bowl 58 achieved historic viewership, becoming the most-watched television show with an estimated 123.4 million viewers, a 7% increase from the previous record set the year before.
- A typographical error in Lyft's Q4 earnings report led to a sudden surge and subsequent sharp reversal in the rideshare company's stock on Tuesday.
- Bret Taylor, OpenAI's Chair, assures that his new AI chatbot startup, Sierra, won't be in direct competition with OpenAI, addressing concerns about potential conflicts arising from other board members' ventures.
- Genetic testing firm Invitae, supported by SoftBank and Cathie Wood, files for Chapter 11 bankruptcy, seeking solutions for debt and additional funding due to pandemic-induced losses.
- Conquer any Kubernetes challenge with the Kubernetes Cookbook. Get your copy from DoiT, a global team of cloud experts.*
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 | Freelance Writer | | Shriram is pursuing Master’s in Business with Marketing at Warwick Business School. He worked as a Senior Consultant in Tech and Political Consultancies before his Masters. He is passionate about Tech, Marketing, Strategy, Anthropology and Politics. He is also the Postgraduate Ambassador for Warwick Business School. | | This newsletter was edited by Aaron Crutchfield | |
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