Snap Stock Slides After it Misses Expected Earnings
Tami Abdollah
Tami Abdollah is dot.LA's senior technology reporter. She was previously a national security and cybersecurity reporter for The Associated Press in Washington, D.C. She's been a reporter for the AP in Los Angeles, the Los Angeles Times and for L.A.'s NPR affiliate KPCC. Abdollah spent nearly a year in Iraq as a U.S. government contractor. A native Angeleno, she's traveled the world on $5 a day, taught trad climbing safety classes and is an avid mountaineer. Follow her on Twitter.
Snap Inc. stock dropped more than 10% on Tuesday after it reported earnings that missed analysts expectations for Q4.
The self-described camera company, based in Santa Monica, reported revenue of $561 million versus the expected $563 million. The company's reported cash flow remains negative despite improvement over the year prior. The company said it lost $240.7 million, or 17 cents per share, compared with FactSet estimates of a 12-cent loss per share.
It reported a full year increase of 17%, or an additional 31 million, daily active users in 2019 compared to last year. The company, which is the maker of the Snapchat app, said it continues to invest in augmented reality platforms with 75% of its community engaging with AR on average daily. Snap also recently launched its new Bitmoji TV on Feb. 1, capitalizing on the popular Bitmoji Stories.
Snap reported that it expects revenue in Q1 of 2020 to be between $450 million and $470 million. That's above analysts expectations of $462 million.
Snap is up roughly 160% from last year, with a 52-week high $19.75 from its low of $6.80.
During Tuesday's earnings call, CEO and co-founder Evan Spiegel told analysts that the company was continuing to invest in its curated Discover page content.
"There are really interest shifts in content consumption," from television to mobile, Spiegel said. "Content hasn't caught up to this behavior shift (yet)."
Short-form video has taken off, especially with Gen Z, with youths moving into houses in Los Angeles, for example, specifically to generate TikTok videos as sponsored social media influencers. Meanwhile, soon-to-be launched, Quibi, or "quick bites," founded by Jeffrey Katzenberg and with CEO Meg Whitman is betting that bespoke episodic weekly videos that are under 10 minutes will take off.
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It's never been a better time to "murder your thirst."
Seven months after raising more than $9 million in Series A funding, Santa Monica-based canned water startup Liquid Death has raised $23 million in Series B funding.
The round was led by an unnamed consumer-focused family office and participated in by Convivialité Ventures, Fat Mike (NOFX), Pat McAfee, existing investor in Velvet Sea Ventures and others.
<p>Co-founded by a former Netflix-linked creative director Mike Cessario, the Science Inc.-backed company said in a statement that it is going through a high-growth period and "setting online records every month" after rolling out to more than 1,700 new stores, including Whole Foods Markets, since its last raise. Cessario said that "the funding will go to fuel that growth."</p><p>Their water that sells for $15.99 for a 12 pack is carried in thousands of stores nationally, including bars, tattoo parlors, cafes, liquor stores and more than 1,000 7-Elevens in Southern California. A company representative said their canned tallboys are the fastest growing water brand in Whole Foods and it has broken its own record on overall sales monthly since March.</p><p class="shortcode-media shortcode-media-rebelmouse-image">
<img type="lazy-image" data-runner-src="https://dot.la/media-library/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNDQzOTk5MS9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY0NDMzMjA4NH0.dmPPTdwLqWgXtMo4n2RuxAOJ_8WdzV3lNGvAPPPiYxY/image.jpg?width=980" id="cf1eb" class="rm-shortcode" data-rm-shortcode-id="0b7e5d045f61a05a5c8dab7f01dc790e" data-rm-shortcode-name="rebelmouse-image" />
</p><p>Liquid Death has positioned its tallboys of still and sparkling canned water as an environmentally-friendly alternative to plastic water bottles — with a bad-boy panache. Along those lines, as part of its #DeathToPlastics initiative, the company gives 10% of profits on every can sold to nonprofits helping to fight plastic pollution and bring clean drinking water to people in need.<br/></p><p>Liquid Death has also upped the ante on its infamous "murder your thirst" tagline, <a href="https://dot.la/liquid-death-metal-album-2645888623.html" target="_self">releasing a heavy metal album of hateful comments</a> its product has received, and giving people the chance to <a href="https://liquiddeath.com/pages/sell-your-soul" rel="noopener noreferrer" target="_blank">sell their soul</a> "for real. Legally binding for eternity" to join its Liquid Death Country Club. It touts more than 5,000 recurring monthly subscribers. The company uses dark humor and an irreverency to drive marketing -—for example, by offering a "fuck Corona special."</p><p>The Securities and Exchange Commission filing shows the company aimed to raise $23 million but was shy $1.9 million. A company spokeswoman said the last two wires didn't come through until after the filing.</p><p><span></span>__</p><p><em>Do you have a story that needs to be told? My DMs are open on </em><a href="https://twitter.com/latams" target="_blank"><em>Twitter @latams</em></a><em>. You can also email me, or ask for my Signal.</em></p>
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Eliminating battery waste, developing new hair growth therapy, fixing carbon dioxide. These are among some of the ambitious problems that companies are trying to solve at the First Look SoCal Innovation Showcase beginning Tuesday.
Hosted by nonprofit Alliance for SoCal Innovation, the online event connects early-stage tech and life science companies with investors and serial entrepreneurs.
<p>Founders of the 30 companies selected to participate come from universities and academic institutions across the region. Tech developed by these researchers and scientists is just emerging from labs, said Steven Gilison from the Alliance. This means most take longer to fundraise than typical startups and this opportunity often represents the start of their funding journey. </p><p>It's the third year the Alliance will host <a href="https://www.alliancesocal.org/events/alliance-events/first-look-socal-2020" target="_blank">the showcase</a>, which has been running for over 10 years. The event starts Tuesday with a daylong focus on life science founders and ends with the next day centered on tech. Each day begins with a keynote presentation and ends with a VC investor panel — a feature that last year brought in funding for several startups. </p><p>Here's a snapshot of the founders gearing up to pitch: </p>
BioZen Batteries Aims to Solve Our Energy Storage Issues
<img lazy-loadable="true" src="https://dot.la/media-library/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNDI0Nzg5MS9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYyNTg3OTYyNn0.y9dSMjovB1GtsQ1SZhKiPTIJY3VW0XOE2YXd-JN1xYU/image.jpg?width=980" id="95064" class="rm-shortcode" data-rm-shortcode-id="c3ad9197ad70005802e6d34d6da3c29d" data-rm-shortcode-name="rebelmouse-image" />Left to right: BioZen Batteries' co-founders Zach Rengert, Nate Kirchhofer and Eric Brigham.
<p>Nate Kirchhofer, co-founder and CEO of <a href="https://biozenbatteries.com/" target="_blank">BioZen Batteries</a>, wants to make batteries that will outlive him.</p><p>Santa Barbara-based BioZen creates organic electrolytes, the active material inside a specific type of battery called a "redox flow battery." It's a different type of technology that differs from the lithium batteries often used in mobile applications like cars and phones. Only 5% of those get recycled.</p><p>BioZen's batteries are well suited for green, large-scale energy storage, Kirchhofer said. For example, batteries that help solar panels connect to the grid or provide backup during disasters when the power goes out.</p><p>Kirchhofer, an electrochemist, founded the company in June of 2019 with Zach Rengert, a materials chemist, and Eric Brigham, the company's CFO. Kirchhofer and Rengert met while getting their doctorate at UC Santa Barbara.</p><p>There hasn't yet been a push for sustainable batteries because it isn't economically incentivized, Kirchhofer told dot.LA. He said that his batteries are cheaper than competitors.</p><p>Kirchhofer's product fits into a growing renewable energy market and a social movement in which individuals want to do their part. He's worked for four startups but says this one is poised to make the biggest impact.</p><p>"If it's not our generation that solves climate change, there's not another chance. There's not another Earth." he said. "If we can make these batteries happen, we can truly integrate renewable energy and stop the petroleum-dominated energy paradigm we're part of."</p><img lazy-loadable="true" src="https://dot.la/media-library/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNDI0ODAzMS9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY0NDg3MDg1NX0.mXMFvLaboDfKTq6Eh2KnK-WJMPjG---pcvmC-C8VDwo/image.jpg?width=1500&coordinates=0%2C54%2C0%2C55&height=2000" id="2dbc8" class="rm-shortcode" data-rm-shortcode-id="4ab24b441f2cc7d1a5f6f23fa1171070" data-rm-shortcode-name="rebelmouse-image" />
Amplifica's founder Dr. Maksim Plikus
Amplifica Treats Baldness with Mole Molecules
<p>Back in 2013, Amplifica's founder Dr. Maksim Plikus began studying hairy moles. Though some find the growths unsightly, his work showed promise for baldness treatment.</p><p>He, along with colleagues at UC Irvine, discovered that molecules from moles that grow excessive hair can induce follicle growth when administered anywhere on the skin.</p><p>"As long as you can tease it out and replicate it in the form of purified molecules, you can achieve essentially what we think would be a novel, revolutionary solution to baldness," Plikus told dot.LA.</p><p>Plikus said his company is the first to solve hair loss by replicating cells from hairy moles to stimulate hair growth. At the moment, hair follicle research has emerged as a leading experimental model for studying stem cells.</p><p>By 2025, hair-loss products are projected to surpass $12 billion, Plikus said. But only two drugs are FDA approved and require daily treatment in the form of pills, which he said come with long-term side effects.</p><p>Amplifica says it's poised to put a more effective and convenient solution on the market. Pinkus' proposed product is a topical solution requiring less frequent application, like getting Botox injections a few times per year.</p>FixingCO2 Aims to Recycle Fuel from the Air
<img lazy-loadable="true" src="https://dot.la/media-library/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNDI0ODM4My9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYzMzA1ODA4MH0.9RqwD9zUN1et1kor8zNPj8WH2kOX6SrysdpRDFT5QMc/image.jpg?width=980" id="daa89" class="rm-shortcode" data-rm-shortcode-id="9851b177139c4b5e06bd9c96fb395083" data-rm-shortcode-name="rebelmouse-image" />FixingCO2's team. CEO Eldar Akhmetgaliyev is at right.
<p><a href="https://fixingco2.com/" target="_blank">FixingCO2</a> got its start on Mars. Like the name says, the company aims to fix the global carbon problem that's fueling climate change.</p><p>In 2018, co-founder Alma Zhanaidarova's professor and research group at UC San Diego received a grant from NASA to build out a reactor that makes renewable fuels and chemicals from carbon dioxide, often a byproduct of industrial waste. The technology was being developed in anticipation of a one-day human mission to Mars, where 95% of the atmosphere is carbon dioxide.</p><p>Now, the San Diego-based startup is commercializing their product for earthlings.</p><p>"It's a different application but the same core technology," co-founder Eldar Akhmetgaliyev told dot.LA. "Instead of making fuels from oil or any other fossil sources, we can make them essentially from air."</p><p>The team is developing the hardware to capture industrial emissions blamed for much of the Earth's warming. The product has significant application for the aviation industry, where planes are built to burn jet fuel that produces carbon emissions.</p><p>"These kinds of technologies provide them a pathway to decarbonization," he said. "They can use fuels made from CO2 so they're not contributing to climate change."</p><p>As fires burn through California and the Pacific Northwest, Akhmetgaliyev said there's urgency for innovators in the carbon tech market. "We're pretty much turning our planet into Mars," he said.</p><p>He said that by 2050, about 14% of overall carbon reduction will come from carbon capture and utilization (CCUS) technology like his.</p><p>"The market hasn't met its opportunity and with the effects of climate change being seen everyday, there's going to be more drive towards these low carbon technologies."</p>From Your Site Articles
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