Author: Steve

Categories
Business Finance

What is Free Cash Flow (FCF) – Definition and Example

Free cash flow (FCF) is a financial metric that measures a company’s ability to generate cash after accounting for capital expenditures. It is an important indicator of a company’s financial health and ability to pay dividends, make acquisitions, and invest in growth opportunities.

FCF is calculated by taking a company’s operating cash flow (OCF) and subtracting capital expenditures (CapEx). OCF is the cash generated from a company’s operations, while CapEx is the cash spent on investments in property, plant, and equipment (PPE).

For example, if a company has an OCF of $100 million and CapEx of $50 million, its FCF would be $50 million. This means the company has $50 million in cash left over after accounting for investments in PPE.

A positive FCF is considered to be a good sign, as it means a company is generating more cash than it’s using in its operations. It also indicates that a company has a strong financial position and is able to pay dividends, make acquisitions, and invest in growth opportunities. On the other hand, a negative FCF is considered to be a red flag, as it means a company is using more cash than it’s generating, and it may indicate financial difficulties.

It’s important to note that FCF is different from net income, which is a measure of a company’s profitability. Net income takes into account a variety of factors such as revenue, expenses, and taxes, while FCF only measures cash flow. Additionally, FCF can also be affected by a company’s accounting methods and may not always reflect the true cash position of the company.

In summary, Free Cash Flow (FCF) is a financial metric that measures a company’s ability to generate cash after accounting for capital expenditures. It is an important indicator of a company’s financial health and ability to pay dividends, make acquisitions, and invest in growth opportunities. Positive FCF is considered to be a good sign, while negative FCF is considered to be a red flag, it’s important to consider it along with other financial metrics and market conditions.

Categories
Business Finance

Quick Snowflake Company Overview, Its Current Free Cash Flow (FCF) Position and Why It’s Important

Snowflake is a cloud-based data warehousing company that allows businesses to store, analyze, and share data in real-time. The company’s platform is built on top of the cloud infrastructure provided by Amazon Web Services, Microsoft Azure, and Google Cloud Platform. Snowflake is publicly traded on the New York Stock Exchange under the ticker symbol SNOW.

One important metric for evaluating a company’s financial health is free cash flow (FCF), which is the amount of cash a company generates after accounting for capital expenditures. FCF is important because it shows a company’s ability to generate cash and pay dividends or make acquisitions.

Snowflake has a positive free cash flow position, meaning that it generates more cash than it uses in its operations. In the most recent quarter, Snowflake reported a FCF of $56.6 million, up from $20.2 million in the same quarter last year. This represents a 180% year-over-year growth in FCF.

This strong FCF position has allowed Snowflake to invest in growth initiatives, including expanding its sales and marketing efforts and research and development. The company has also been able to return cash to shareholders through share buybacks.

Snowflake’s financial position has been supported by its subscription-based business model, which provides a steady stream of recurring revenue, and the growing demand for cloud-based data warehousing solutions. The company has also benefited from the shift to remote work and digital transformation as more companies turn to Snowflake’s cloud-based data warehousing solutions.

Categories
Business

Quick Veeva Systems Company Overview, Its Current Free Cash Flow (FCF) Position and Why It’s Important

Veeva Systems is a cloud-based software company that specializes in providing solutions for the pharmaceutical and biotechnology industries. The company’s product portfolio includes solutions for customer relationship management, clinical trial management, and regulatory compliance. Veeva is publicly traded on the New York Stock Exchange under the ticker symbol VEEV.

One important metric for evaluating a company’s financial health is free cash flow (FCF), which is the amount of cash a company generates after accounting for capital expenditures. FCF is important because it shows a company’s ability to generate cash and pay dividends or make acquisitions.

Veeva Systems has a strong free cash flow position. In the most recent quarter, Veeva reported a FCF of $284.5 million, up from $221.1 million in the same quarter last year. This represents a 28.5% year-over-year growth in FCF.

This strong FCF position has allowed Veeva to make strategic acquisitions and return cash to shareholders through share buybacks and dividend payments. The company has also been able to invest in research and development and expand its product offerings.

Veeva’s financial position has been supported by its subscription-based business model, which provides a steady stream of recurring revenue. The company has also benefited from the growing demand for cloud-based solutions in the pharmaceutical and biotechnology industries.

Categories
Business Tech

Zoho Has a Strong Product Portfolio – but No Plans to Go Public Just Yet

Zoho is a privately held software development company that offers a wide range of products for businesses of all sizes. The company was founded in 1996 in India, and it has since grown to become a major player in the software industry.

One of the most notable aspects of Zoho is its extensive product portfolio, which includes solutions for various business functions such as customer relationship management, accounting, human resources, and more. Some of their popular products are CRM, Mail, Office Suite, Creator, and Books.

Zoho CRM, for example, is a comprehensive CRM solution that helps businesses manage their sales, marketing, and customer support activities. Zoho Mail, on the other hand, is a web-based email service that offers a range of features such as calendar, contacts, and tasks.

In addition to its diverse product offering, Zoho is also known for its commitment to customer service and support. The company offers a wide range of resources, including documentation, tutorials, and webinars, to help customers make the most of its products.

Despite its success, Zoho has no plans to go public. According to the CEO, Sridhar Vembu, the company is focused on building a sustainable business model, rather than chasing short-term gains. He believes that going public would pressure the company to focus on meeting quarterly earnings targets, rather than long-term growth.

However, it’s worth noting that this doesn’t mean that Zoho will never go public. The company could change its mind in the future if it feels that going public would be in the best interest of its shareholders.

Categories
Business

Quick Salesforce Company Overview, Its Current Free Cash Flow (FCF) Position and Why It’s Important

Salesforce is a cloud-based customer relationship management (CRM) software company that has experienced significant growth in recent years. The company has a diverse range of products, including Sales Cloud, Service Cloud, Marketing Cloud, and more.

One important metric for evaluating a company’s financial health is free cash flow (FCF), which is the amount of cash a company generates after accounting for capital expenditures. FCF is important because it shows a company’s ability to generate cash and pay dividends or make acquisitions.

For Salesforce, the company’s FCF has been consistently positive in recent years, indicating a strong financial position. In the most recent quarter, Salesforce reported a FCF of $1.4 billion, up from $1.1 billion in the same quarter last year. This represents a 27% year-over-year growth in FCF.

This strong FCF position has allowed Salesforce to make strategic acquisitions, such as its $27.7 billion acquisition of Slack. The company also has a history of returning cash to shareholders through share buybacks and dividend payments.

In addition, Salesforce’s financial position has been supported by its subscription-based business model, which provides a steady stream of recurring revenue. The company has also benefited from the shift to remote work and digital transformation, as more companies turn to Salesforce’s cloud-based CRM solutions.

In summary, Salesforce’s strong free cash flow position has allowed the company to make strategic acquisitions and return cash to shareholders. The company’s subscription-based business model and the shift to remote work have also supported its financial position. This makes Salesforce an attractive option for investors looking for a company with a strong financial position.

Categories
Business

What is the Current Free Cash Flow of Salesforce (CRM)

For the fiscal year ended January 31, 2021, Salesforce reported a free cash flow of $5.05 billion. This represents an increase of 28% compared to the previous year. This is a strong indication of the company’s financial health and stability.

Categories
Business Tech TV and Films

YouTube is Looking to Offer Free cable-style TV Channels

YouTube is reportedly in the process of negotiating with media companies to provide their TV shows and films as part of an ad-supported hub of channels. The platform is already in the process of testing viewer interest in this idea and could potentially roll out the hub to more users before the end of the year, according to The Wall Street Journal. This could be a significant opportunity for YouTube to expand its platform, as well as to increase its revenue from advertising. Furthermore, it would give media companies the chance to reach larger audiences and potentially create more engagement with their content. This hub of ad-supported channels could be a mutually beneficial venture, with YouTube and media companies reaping the rewards.

Categories
Business Tech

How Much Money Does SoundCloud Pay Artists Per Stream?

Streaming services like SoundCloud have opened up new opportunities for musicians to be heard around the world. But many people are curious about the financial side of streaming, specifically how much money do artists make per stream on SoundCloud? In this blog post, we’ll explore the answer to this question.

SoundCloud’s Payment Model

SoundCloud’s payment model is based on revenue sharing. Each time a user listens to a song on the platform, the artist earns a portion of the revenue generated by ads or subscriptions. The exact amount varies depending on the terms of the artist’s contract with SoundCloud, as well as the country where the song is being streamed.

How Much Does SoundCloud Pay Per Stream?

The amount of money paid per stream on SoundCloud can range from $0.0017 to $0.0084, with the average being around $0.0031 per stream. However, the exact amount varies depending on the artist’s contract and the country where the song is being streamed.

Factors That Impact SoundCloud Revenue

The amount of money earned per stream on SoundCloud is affected by several factors, such as the artist’s contract with the platform and the country where the song is being streamed. Additionally, the type of user who is streaming the song can also affect the amount of money earned. For example, if a premium user is streaming the song, the artist may earn more money than if a free user was streaming the same song.

Streaming services like SoundCloud have opened up new opportunities for musicians to be heard around the world. But it’s important to understand the financial side of streaming, specifically how much money do artists make per stream on SoundCloud? The amount of money paid per stream on SoundCloud can range from $0.0017 to $0.0084, with the average being around $0.0031 per stream. However, the exact amount varies depending on the artist’s contract and the country where the song is being streamed, as well as other factors such as the type of user who is streaming the song.

Categories
Business

What’s the Difference Between Berkshire Hathaway A Stock and B Stock?

Berkshire Hathaway is a holding company owned by Warren Buffett and is one of the most successful and well-known businesses in the world. The company has two classes of stock, A and B, and the two stocks have some important differences. In this post, we’ll explore the difference between the two types of stock and what that means for investors.

Class A Stock

Berkshire Hathaway Class A shares are the company’s original stock, and are traded on the New York Stock Exchange under the ticker symbol BRK.A. Class A shares are the most expensive, currently trading around $350,000 per share. The stock is known for its high dividend yield, and investors receive one vote per share when voting at the company’s annual meeting.

Class B Stock

Berkshire Hathaway’s Class B shares are much more affordable, trading around $250 per share. The stock still carries the ticker symbol BRK.B and still pays a dividend, though it is not as high as the Class A stock. In addition, Class B shares only carry one-tenth of the voting power of Class A shares.

Conclusion

Berkshire Hathaway A stock and B stock are two classes of stock offered by the company. Class A stock is the most expensive, but carries more voting power and a higher dividend yield. Class B stock is more affordable and pays a dividend, though it carries much less voting power. Both classes of stock offer investors a chance to benefit from the long-term success of Berkshire Hathaway.

Categories
Music Tech

Uncovering the Hidden Fees of Distrokid

Many musicians are signing up for DistroKid’s music distribution service, but they may not be aware of all the hidden fees that can be charged. This post will explore DistroKid’s hidden fees, explaining what they charge and how to avoid paying too much.

What hidden fees does DistroKid charge?

DistroKid charges an annual fee for the use of their service. This fee specified on their website is $19.99. However, many users don’t realize there is an additional fee for each album or song they upload. This fee is $9.99 per album and $0.99 per song. If an artist is uploading many albums or songs, these fees can add up quickly.

What other hidden charges are there?

In addition to the annual fee and per album/song fee, DistroKid also charges a processing fee of $1 per album/song. This fee is charged each time an album or song is uploaded, so costs can add up quickly if musicians are uploading a lot.

There is also a $2.99 fee for sharing an album or song with a friend. This fee is charged each time a user shares a song or album with someone, so costs can add up quickly.

DistroKid offers a useful music distribution service for musicians, but it’s important to be aware of the hidden fees they charge. Understanding these fees can help musicians avoid paying too much for the use of DistroKid.

Categories
Design Tech

AI Generated Image Copyrights – Is It Really OpenAI?

The world of AI generated images and copyright ownership over the images created – is a very interesting world indeed. 

OpenAI Dall-E 2 images as the example: 

“To use DALL-E 2, you have to agree to OpenAI’s Terms of Use. According to these terms, OpenAI actually owns the images you create (which the Terms of Use call “generations”). OpenAI graciously grants you the right to sell your DALL-E 2 images (assuming you can somehow persuade someone to pay you for an image they can copy for free).

If that feels like the maker of the paintbrush telling Monet what he gets to do with his painting, that’s understandable.

To add insult to injury, OpenAI’s terms go further. Just to make it perfectly clear, you expressly assign any rights you might have in your image (whatever those might be) to OpenAI by contract. As the owner of the image, OpenAI can grant other people the right to reproduce, publish, or sell images that you create with DALL-E 2. You could find yourself in the position of walking into a store and seeing it selling your DALL-E 2 masterpiece on cheap T-shirts, and there would be nothing you could do to stop it.”

Categories
Cryptocurrency Tech

Brave Browser and Moving Brave Rewards into a Brave Wallet (or not)

I have just started to do some testing on the Brave Browser. I thought it would be fun to see if it was possible to actually use it consistently and make a little extra income on the side. After using it for a few weeks it didn’t really seem to be paying off. However, the worst part was the inability to move Brave Rewards straight to a Brave Wallet and collect earnings.

Brave Rewards were created first and see to be silo’d outside of other Brave services, such as the Wallet (which is a recent addition).

Currently, if you want to move your Brave Rewards you need to move them either via Uphold or via Gemini (both of which aren’t great choices and yet another account required for little to no reason).

Im hoping in future versions of Brave Rewards and the Brave Wallet they can just simply work together. I would love a world in which I could use my browser (which automatically stops annoying ads and replaces them with a better advertising option in browser that pays me in a cryptocurrency for viewing those ads – then allows me to seamlessly move them into a wallet to either transfer into another currency or put it straight into my bank.

Maybe one day that day will come!

Categories
Business Tech

Tencent Music Entertainment Set to List on Hong Kong Stock Exchange in Coming Days

It has been reported that Tencent Music Entertainment will be performing a secondary listing in Hong Kong in the coming days.

China’s TME, home to three of the country’s leading music streaming services; QQ Music, Kugou and Kuwo.

The secondary listing plan was announced by TME Executive Chairman Cussion Pang alongside the firm’s Q4 2021 and FY 2021 results.

This will be a very big listing for the Hong Kong Stock Exchange.

“We are pursuing a secondary listing on the Main Board of the Hong Kong Stock Exchange through a listing by way of introduction (which is a direct listing without any offering of new shares), subject to regulatory approvals,” said Pang.

It will be interesting to see in the coming year if TME also decides to keep their NYSE listing or whether they decide to pull out of the US market.

Categories
Music

Outertone Chill – Amazing Chillout Music to Help Relax, Focus on General Background

Over the past 3 months or so we have been running a new YouTube project at RouteNote called Outertone Chill.

The channel is dedicated to Chillout music of all kinds of genres.

The aim of the project to sign and create amazing chillout tracks that can help people relax day to day, focus, or just general background music for their day at work.

If you get a chance please take a look at the channel and it would be great to hear your feedback.

Categories
Sports Tennis

Carlos Alcaraz – Point of the Tournament at the US Open 2022

Carlos Alcaraz is a beast on a tennis court and he is now through to the Final of the US Open (where if he wins he could also become the number 1 player in the world).

This video really shows you why he is one of the best players in the world. His ability to get every ball and make his opponent his an extra shot is simply amazing.

Categories
Business Music

Kobalt Sells to Francisco Partners (Private Equity) – Loss for Independent Music Industry

It was announced a few days ago that Kobalt has sold to private equity firm – Francisco Partners.

The acquisition was price around $750 million and Francisco Partners acquired 90% of Kobalt. The remaining 10% will be split between Matt Pincus’s MUSIC, plus Dundee Partners and also Willard Ahdritz (founder of Kobalt). (Pincus will join the Board of Kobalt post the deal closing.)

Kobalt has always been the poster child of the independent music industry for music publishing rights. It’s a huge shame to see them sell to private equity instead of trying to push on further and remain an independent firm.

Over time it will be interesting to see if Francisco Partners decides to hold on to Kobalt or look to further offload the assets as they appreciate in value.

Either way… Kobalt has had amazing success over the years and its great to see them in a position where they could potentially grow even further.

p.s. Im very bullish on AMRA

Categories
Business Tech

Private Investing vs Public Investing = Tale of Failed IPOs

I posted this on Twitter, but thought I would also share on here as it really showed the difference between private investing and public investing.

Some companies that have market caps less than the total money they have raised:

• Bird ($120M mkt cap vs $1.2B raised)

• Wish ($810M mkt cap vs $2.9B raised)

• WeWork ($2.8B mkt cap vs $16.2B raised)

• Lyft ($5.1B mkt cap vs $7.3B raised)

Categories
Sports Tennis

Nick Kyrgios My Tip for US Open 2022 Winner

Nick Kyrgios is into the Quarterfinals of the US Open after defeating Daniil Medvedev (current world number 1).

Kyrgios has been in amazing for since Wimbledon this year and he has kept the great mindset and amazing tennis going.

He has matured, become more focused, got an amazing team around him.

He is my tip to play Rafael Nadal in the final and beat him in 4 sets.

Categories
Sports Tennis

Margaret Court Just Needs to Stop Talking!

https://www.dailymail.co.uk/sport/tennis/article-11179893/Australian-tennis-legend-Margaret-Court-slams-Serena-Williams-Open-exit-retirement.html

These kinds of articles and comments are just upsetting.

Margaret Court was an outstanding tennis player! but a TERRIBLE HUMAN BEING!

Over the years Margaret has made bigoted, racist and derogatory comments, but for some reason she is still in the public eye and the press comments about her comments.

Its disgusting!

Categories
Business Tech

Cash App Marketing Strategy – Bring in the Hip Hop Culture

I came across this post by – Dan Runcie (Trapital). Great read and started to make a lot of sense in combination with Square (Cash App owners) also buying Tidal.

Research also via – Ark Invest – https://ark-invest.com/articles/analyst-research/squares-cash-app-twitter/

For years, Cash App lagged behind Venmo. But that was before it teamed up with rappers as influencers. Here’s how hip-hop helped Cash App become a $73B+ business.

When Cash App launched in 2013, it was very buttoned-up.

Users needed phone numbers or emails to transfer money. There was no social element. It lost money with every new sign-up.

But in 2015, Cash App introduced $cashtags. In 2017, it followed up with Bitcoin trading just before it hit its first $20k high. The timing was perfect.

With its crypto users generating 3x more revenue than non-crypto users, Cash App wanted to double down on its influence.

At the time, Cash App started getting more shoutouts in rap songs. The company wasn’t sure why, but Block, Cash App’s parent company, locked in on one of the more successful influencer campaigns in recent years.

In May 2018, Cash App teamed up with Lil’ B. That August, Travis Scott came on board. And in December of that year, Snoop Dogg was its newest partner.

With Cash App as a sponsor, these artists gave away $100-$500 to fans who posted their $cashtag under their posts.

Cash App’s hip-hop influencer giveaways worked for four reasons:

1. Low customer acquisition cost (CAC)

2. Free money is always an easy sell

3. This was the first time hip-hop fans were the target audience for a financial service

4. It built on its existing popularity

Let’s break those down.

1. Low CACs

ARK Invest had a great breakdown on how Cash App’s hip-hop influencer tactics drop its CAC to be as low as $20 per user.

As a comparison, traditional banks spend $925 per user.

2. Free money is an easy sell

In 2019, the company spent an estimated $60k on Cash App Fridays, an investment that paid for itself many times over. Cash App Fridays became an awareness-building tactic in itself.

3. Reaching different customers

Cash App’s user base is strongest in the South and the Midwest of the US, which aligns with the regions where many hip-hop fans live.

Historically, these regions also get ignored by traditional banks.

By targeting these areas, Cash App took an approach opposite to most startups who instead focus on their “early adopter” coastal elite networks in NY, SF, LA, and DC.

Unlike Venmo, which relied on Ivy League students and alumni for initial growth.

4. Built on existing popularity

Cash App has now been name-dropped by 200+ hip-hop artists.

Sponsoring artists to give away hundreds of thousands led to more peer-to-peer transactions, which attracted more of its most profitable demographic, Bitcoin investors.

Cash App leaned into its popularity even more when it launched Cash App Studios in 2021 to bankroll artists and other creatives.

Cash App has achieved every modern brand’s dream: To become part of the ‘culture’ without appropriating it.