This episode is brought to you by Daloopa. Please enjoy this breakdown of Adyen. Please enjoy this excellent Breakdown of Rolex. A brief introduction to the economics of the fitness industry, covering why the ideal gym customer is one that rarely uses the service. Try Visible Alpha for free by visiting visiblealpha.com/breakdowns, [00:02:52] - [First question] - What is Block and what it does as a business, [00:04:58] - How is Block organized, their scale, and how many merchants they serve, [00:08:03] - Their founding story and the insight that lead to creating Block, [00:10:49] - Major milestones in the last decade after releasing their card reader, [00:13:47] - The story behind their Cash App and what it is, [00:18:59] - What Afterpay is and how it creates connections for merchants, [00:21:23] - Overview of the payment ecosystem and where Block fits into it, [00:25:03] - The P&L of Square, its blended gross margin, and customer acquisition strategy, [00:30:42] - How Cash App makes money and its P&L, [00:35:54] - The balance sheet of Block and how theyve stood out in a competitive space, [00:38:31] - The ways their product organization allows them to move at a rapid pace, [00:40:30] - How they avoid fraud thats seemingly everywhere in financial service businesses, [00:42:01] - His thoughts on the competitive environment and how theyre succeeding, [00:47:56] - Highlights of M&A and how they reconcile them with their overall strategy, [00:54:44] - Their view on Bitcoin and crypto and how it plays into Blocks business, [00:59:09] - Things that could happen in a macro environment to aid their future growth, [01:01:30] - What could go wrong in the future and the macro environments impact, [01:03:49] - Lessons for builders and investors when studying Blocks story, [01:06:20] - Places to go to learn more about Block. Scribe is designed to accurately transcribe messy, real-world audio and is unique in that its optimized for the complexities of enterprise audio, such as company and product names, currencies, accents and numbers. This wasn't a name on our radar at Colossus but the more we dug into the story, the more intrigued we became. My guest today is Diogo Monica, co-founder and President of Anchorage Digital. Rather than having to dig through models one by one, Visible Alpha extracts data from every line item across sell-side models so you can better understand expectations on metrics beyond just revenue and earnings. For more episodes of Business Breakdowns, visit, Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss Show Notes [00:02:47] - [First question] - What its like to walk into a Basic-Fit gym [00:03:50] - Their footprint today in terms of geography, members and locations [00:04:41] - The history of gyms in the US and differences between them and European ones [00:08:33] - Why US gym models lack influence and penetration in Europe [00:10:58] - The key insight that led to founding Basic-Fit [00:13:40] - Economics of building and operating a gym in general and for Basic-Fit [00:16:47] - Typical churn for more established locations and their member demographic [00:20:33] - When Basic-Fit breaks even on a membership and how they battle churn [00:23:28] - Their cancellation policy and why they dont leave for typical reasons [00:25:10] - Basic-Fits fortressing strategy and clustering philosophy [00:28:51] - Whether or not theres data to support members using multiple gyms [00:33:11] - The competitive landscape and whether other gyms adopt Basic-Fits strategy [00:35:21] - What drives country localizations for a particular gym chain [00:38:22] - Basic-Fits digital offering and at-home disruption from US brands [00:42:31] - How they navigated the pandemic and if theres any lasting changes [00:44:31] - The biggest threats to Basic-Fit over the next five years [00:46:23] - Major takeaways from studying Basic-Fits story, Invest Like the Best with Patrick O'Shaughnessy. [00:03:19] - [First question] - The journey of producing a barrel of oil and how Baytex fits into the oil production ecosystem, [00:05:29] - How $100 is dispersed amongst the value chain when a barrel of oil is purchased, [00:08:03] - A broad overview of Baytex today and its history, [00:13:05] - The production of a barrel of shale oil and unique characteristics of shale, [00:16:25] - The main drivers of increased productivity and optimization in oil production, [00:19:11] - What breaking even looks like today on a barrel of oil, [00:23:20] - Describing the decline rate of a shale well compared to conventional plays, [00:25:22] - Overview of the differences of oil blends and quality coming out of Texas versus Canada, [00:29:14] - Where the US still imports oil outside of Canada, [00:30:51] - A snapshot of what Baytexs Canadian operations look like, [00:35:38] - The other major Canadian assets Baytex has, [00:38:28] - The heavy oil decline rate of Canadian oil wells compared to US shale wells, [00:39:59] - What makes Clearwater such an exciting and interesting opportunity for Baytex, [00:43:30] - Identifying where oil might be and what that process looks like, [00:47:02] - His process as an investor in evaluating new projects like Clearwater, [00:56:00] - How to ascribe value to a project like Duvernay compared to Clearwater, [01:00:05] - Baytexs approach to hedging and how it differs from the rest of the industry, [01:02:15] - How the management team at Baytex manages capital allocation, [01:05:33] - Why return capital to shareholders, [01:07:41] - Metrics he uses to value an oil production company or adjacent business, [01:11:19] - Rules of thumb to consider when it comes to evaluating the asset base, [01:14:05] - Main risks that could drive stock underperformance, [01:16:38] - Lessons and takeaways from his time investing and working with Baytex. maintenance caterquip planned reserved. Try Visible Alpha for free by visiting visiblealpha.com/breakdowns ----- This episode is brought to you by Quartr. This is Matt Reustle and today we are breaking down DuPont. Crucially, it does so with speed that emanates from Silicon Valley. Today, Schwab makes the majority of their money earning interest on customer cash deposits. Digital Infrastructure powers that experience. Please enjoy this breakdown of Anduril. Chris is the President and CIO of Semper Augustus and has gone as deep on Berkshire as anyone Ive ever encountered, making him the perfect person to do this with. Vinny Pujji is a partner at Left Lane Capital. For a prospectus and more information, please visit roundhillinvestments.com/etf/byte. We break down the unique dynamics of the Polish consumer, how Dino differentiates from its competitors, and Dino's founder of mystery Tomasz Biernacki. Please enjoy this business breakdown of Afterpay. Adyen was founded in Amsterdam in 2006 by a group of payments entrepreneurs who had already built and sold a business in this space. Please enjoy this breakdown of Anduril. We cover Pelotons success in creating a new fitness category, the impact of the pandemic on its financials, and why it might make sense for Peloton to build its own music label. Sign up, In the 1900s the company evolved away from their roots in gunpowder and dynamite and it's hard to find an industry they havent touched since then. But Baytex has production in five different operating areas spanning across the US and Canada. Coinbase Prime combines advanced trading, battle-tested custody, financing, and prime services in a single solution. To break down the business behind the stars and action you see on the PGA Tour, Im joined by. Today, we are breaking down Anduril. Today, they operate over a 1000 clubs across 5 countries, and have 2 million combined members in their system. In the 1900s the company evolved away from their roots in gunpowder and dynamite and it's hard to find an industry they havent touched since then. An accountant by trade, James McKinsey, took inspiration from a range of well-established professions like engineers, doctors, and lawyers to create a new category. For more episodes of Web3 Breakdowns, visit. For listeners unfamiliar with Web3 Breakdowns, the concept was inspired by Business Breakdowns but intended to be a place fully dedicated to the emerging ecosystem around blockchains, crypto assets, and everything that makes up Web3. [00:02:40] - [First question] - What is Fanatics and the scale of the business today, [00:04:26] - What the core business of Fanatics does, [00:05:41] - The history of Fanatics and what led to its success, [00:10:59] - Michael Rubins story and the role that GSI played in Fanatics growth, [00:13:58] - How the licensing business works and how Fanatics relationship with the leagues differs from their competitors, [00:15:34] - The landscape of this industry before Fanatics, [00:16:36] - Why the change from the best commerce experience to a broad digital sports platform, [00:19:02] - Differences of Fanatics P&L compared to others in the industry, [00:21:05] - How the real-time advantage helps drive growth in the business, [00:23:12] - Whether or not the leagues participate in gross margins and how much of a focus they place on cost optimization, [00:25:25] - Distinctive things about Fanatics from an investors perspective, [00:26:22] - Why hasnt Amazon stepped into this space yet, [00:27:30] - Which leagues have opted out of working with Fanatics and interesting team and player dynamics, [00:28:59] - Reasons behind getting involved with NFTs, trading cards, betting, and how it might evolve in the future, [00:32:22] - Ways theyre taking the core business and augmenting other branches, [00:34:36] - What will have gone right over the next five years for Fanatics to continue growing at the pace they are today, [00:37:59] - What will have gone wrong over the next five years that will hurt Fanatics growth, [00:39:59] - Lessons for builders and investors when studying Fanatics story. Having personally worked at Goldman for a decade it was great to go through the inner workings of a bank with Marc. [00:31:10] - Are we heading to a future where warfare is mostly machine against machine? and enjoy our growing catalog of episodes. Please enjoy this conversation on Baytex Energy. A discussion around the economics of the food business and restaurants' recent digital transformations. feed and represents an interesting case study of corporations embracing blockchain technology. My guest is, from Shopify - who you may remember from our Business Breakdown on Shopify in 2021. Today, some 100 years later, management consultants are entrenched in every part of the global economy and McKinsey continues to lead the field. Sign up here. The business has since grown into a full-service financial platform for institutions, allowing them to securely participate in web3. Seth covers what separates commodity chemicals from specialty chemicals, we get some quick chemistry lessons on what's happening to create these well-known products like Nylon and Tyvek, and why after all of the years as a behemoth in the industry, DuPont has "unbundled" into several independent companies. They report over $8 trillion in assets under custody and a market cap scratching $120 billion but I think the most fascinating part about this breakdown is the strategic pivot taken by Schwab. Please enjoy this excellent Breakdown of Rolex. Web3 Breakdowns is a property of Colossus, LLC. We cover how producers fit into the broader energy ecosystem, the differences between unconventional shale wells versus conventional wells, and how management teams think about capital allocation. Rather than having to dig through models one by one, Visible Alpha extracts data from every line item across sell-side models so you can better understand expectations on metrics beyond just revenue and earnings. Zack Fuss - Breaking Down the Food Ecosystem. Please enjoy my conversation with Alex Danco. To break down Schwab, I am joined by Holland Advisors Founder and Portfolio Manager, Andrew Hollingworth. This episode is brought to you by Coinbase Prime. We cover what it means to operate as a bank vs online broker, how Charles Schwab himself grew this business out of a newsletter, and whats on the horizon for Schwab in the future. Please enjoy this breakdown of Dino Polska. Today, were breaking down one of the strongest brands in the world - Rolex. We cover how buy-now-pay-later compares to traditional credit cards, what differentiates Afterpay from direct peers, and how each player of its ecosystem benefits from its offering. For the full show notes, transcript, and links to mentioned content, check out the episode page, To break down Goldman, I am joined by longtime financials analyst, . Daloopa updates these KPIs and data points in your existing Excel models in one click, regardless of your source or format.