Thank you for the post! I partially agree with the financial shenanigans not being optimal, but I would give Alexis a B. Their creative liability management is giving the company breathing room and the ability to focus on what's important. Additionally, even though there's an artificial ceiling at $23.40, the company does have an option to pay out in cash and/or repurchase with their current (approx.) $100M in cash, meaning 20% is an option and not guaranteed, especially if they can get to $50M in EBITDA. If instead of 20% we get 5%, 10%, or 15% dilution, that's a plus ;D
For these reasons, I think a B is more appropriate (with optionality for a B+)
I think Q2 expectations have been revised donw now... I will give them the benefit of the doubt as they need to finetune the platform. But I agree overall, they should be better placed end 2024 to move forward the business.
Any thoughts on Amit Gupta? Glad its someone from the inside that takes over, hopefully he stays on
Thank you for the post! I partially agree with the financial shenanigans not being optimal, but I would give Alexis a B. Their creative liability management is giving the company breathing room and the ability to focus on what's important. Additionally, even though there's an artificial ceiling at $23.40, the company does have an option to pay out in cash and/or repurchase with their current (approx.) $100M in cash, meaning 20% is an option and not guaranteed, especially if they can get to $50M in EBITDA. If instead of 20% we get 5%, 10%, or 15% dilution, that's a plus ;D
For these reasons, I think a B is more appropriate (with optionality for a B+)
Has Karim sold shares besides for tax reasons when his RSUs vest?
No. That can be viewed as separate from selling shares, but in reality it effectively is selling shares.
Possible he doesn't have the liquid cash to pay taxes on those however
The real tragedy is his California marginal tax rate
I think Q2 expectations have been revised donw now... I will give them the benefit of the doubt as they need to finetune the platform. But I agree overall, they should be better placed end 2024 to move forward the business.
Any thoughts on Amit Gupta? Glad its someone from the inside that takes over, hopefully he stays on