| Here’s your daily business briefing. - 🤖 Figure robotics raises $675M from tech giants
- 🔍 Deep Dive: Luxury brands boost retention amid sales slump
- 💼 Cox buys Govt. software firm for $1.8B
Thanks for reading! Shriram
p/Shriram | |
| 1 | | Figure, a robotics startup, secured $675M in funding, backed by investors like Nvidia, Microsoft, and Jeff Bezos, at a valuation of $2.6B. The funding round also included participation from other firms such as OpenAI Startup Fund, Amazon Industrial Innovation Fund, Parkway Venture Capital, Intel Capital, Align Ventures, and ARK Invest. More: - Additionally, California-based Figure announced that it will be working with OpenAI to create generative artificial intelligence for its humanoid robots.
- OpenAI's vice president of product and partnerships, Peter Welinder, emphasized the promise of multimodal AI-powered humanoid robots.
- Figure's AI models will utilize OpenAI's latest GPT models and be trained on the company's collected robotics action data.
- Figure intends to abandon its existing configuration and use Microsoft Azure for AI infrastructure and training.
- Figure's founder and CEO, Brett Adcock, mentioned that the funding will be utilized to create extensive language models for robotics, expand manufacturing capabilities, and hire.
Zoom Out: - Figure and BMW Manufacturing partnered last month to use Figure's humanoid robots in the automaker's American operation.
- In 2023, Figure, a business focused on creating all-purpose humanoid robots, has raised $70M from investors led by Parkway Venture Capital.
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| 2 | | 
What the numbers say: Sales of personal luxury goods in the Americas declined by 8% in 2023 to $109M, reflecting the impact of high inflation and reduced savings for many individuals. Neiman Marcus concentrates on customers spending over $25,000 annually, as this group represents 2% of their customer base but contributes 40% of sales and is deemed ultra-loyal and resilient to market shocks. Relevance: Luxury retailers and brands are ramping up initiatives to engage and keep affluent shoppers as sales face a downturn due to economic challenges. Their tactics involve organizing exclusive events, providing personalized experiences, and strengthening connections with high-value customers to sustain revenue growth. More data: In 2023, Neiman Marcus increased its top-tier customer events by 50%, featuring exclusive experiences like red-carpet activities at the Cannes Film Festival. Saks expanded its Limitless VIP program, incorporating exclusive partnerships and experiences to foster enduring customer relationships. At the same time, the newly introduced concierge-shopping service, Long Story Short, requires a $1,000 monthly fee and stringent vetting for access to a private club tailored for power shoppers. | | | |
| 3 | | Cox Enterprises is set to acquire OpenGov, a city and state agency software provider, in a $1.8B deal involving the purchase of the remaining stake it doesn't already own. OpenGov, headquartered in San Francisco, specializes in a software platform for local governments, facilitating budgeting, accounting, and asset management tasks. More: - The acquisition enables OpenGov's management and employees to retain a substantial equity stake, and the company will maintain its current leadership structure under the Cox umbrella.
- With annual sales of over $23B, Atlanta-based Cox Enterprises is well-known for acquiring businesses focusing on the local market, such as Autotrader and Axios.
- OpenGov will be able to pursue acquisitions, expedite product development, and handle issues like personnel changes and cybersecurity threats thanks to the acquisition.
- In the fourth quarter, gross new sales for OpenGov increased by 76% YoY due to the company's acquisition of Cartegraph, a cloud software supplier for government organizations.
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| 4 | | Duolingo's shares ($DUOL) rose more than 16% after the company projected stronger-than-anticipated 2024 revenue from integrating online learning and AI. If these gains persist, Duolingo could see an increase of $1.68B in market value, with the 2024 revenue forecast ranging from $717.5M to $729.5M, surpassing analysts' average estimate of $699.3M. More: - Generative artificial intelligence has been incorporated by Duolingo into its products, most notably in its March 2023 premium tier, Duolingo Max.
- In the fourth quarter, the company recorded record overall bookings of $191M, up 51%, with nearly 60% growth in paying customers, or 6.6 million.
- Daily active users on Duolingo surged by 65% in Q4, and monthly active users increased by 46% YoY.
- According to Seaport Global, the move to online education has made Duolingo a market leader in language learning thanks to its "freemium" business strategy.
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| 5 | | Birkenstock ($BIRK) exceeded revenue expectations for the holiday quarter with a 22% YoY increase supported by increased prices. Despite the revenue boost, the company reported a net loss of $7.7M, compared to $9.96M in the previous year, with adjusted earnings per share meeting analyst expectations at 9 euro cents and revenue surpassing estimates at $328M. More: - Birkenstock experienced strong demand in its wholesale channels, with sales rising in North America (14%), Europe (32%), and the Asia-Pacific, Middle East, and Africa region (47%) in the fiscal first quarter.
- Birkenstock plans to double production capacity in the next three years to address rising demand, anticipating a temporary impact on profitability.
- Unfavorable currency translation and inadequate absorption from capacity increases caused the company's gross profit margin to drop 61%.
- Sales data reveals that closed-toe shoes, such as sneakers and clogs, surpassed sandals in percentage share for the first time, indicating a shift in consumer preferences.
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| 6 | | The Chinese search engine giant Baidu ($BIDU) disclosed a record quarterly revenue of $4.86B, representing a nearly 6%YoY increase. However, net profit declined by 48% to $361M, falling short of estimates, mainly attributed to losses associated with an equity method investment. More: - Baidu reported revenue slightly below estimates but exceeded expectations in operating profit and adjusted profit, driven by reductions in non-GAAP administrative expenses and research and development spending.
- The company wanted to establish itself as a pioneer in AI and gain a first-mover advantage in China, so it introduced Ernie Bot, an AI-powered chatbot.
- With a decline in core advertising revenue in 2019, Baidu diversified its income streams by investing in technologies such as AI chips, software infrastructure, self-driving cars, and cloud computing.
- CEO Robin Li emphasized Baidu's commitment to advancing chatbots and foundational models for future growth.
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| 7 | | Quick Hits: - Business Owners who took Visa or Mastercard from Jan. 1, 2004, to Jan. 25, 2019, apply to see if you are entitled to a portion of a $5.6B payout.*
- ITV has sold its stake in a U.S. streaming service to BBC Studios in a $297M deal, with plans to return cash to investors through a share buyback program.
- Major League Pickleball and the Professional Pickleball Association have successfully merged following months of drama and negotiations, joining forces to shape the future of professional pickleball.
- Millennials, despite facing hurdles to traditional goals, are expected to inherit around $90T in the next 20 years, potentially becoming the richest generation.
- Athleta has entered a five-year partnership with Olympic swimmer Katie Ledecky, making her the latest member of the Power of She Collective, and launched the "Find your Movement" campaign.
- Uncover the trends shaping the business landscape in 2024. From building trust to leveraging tech, our report shares crucial developments for success.*
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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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