This is what the Flux.
I'm justin and I'm harsh deep and it's Wednesday, the fifth of June HG.
After nearly one hundred years of operations in Australia, he and O cruises, you're shutting. It's Australian operations. They reckon high poor charges and the difficulty of actually finding a place to park is all a bit too much.
Oh yes, Flux fam. Have you ever had a friend owe you money but you've never chased them up because he felt too awkward? What about a family member asked you for financial health? Money is awkward, but it doesn't have to be. That's why we've built this month's course in the Flux Academy where we give you the tools to have money conversations with your partner, your friends, and your family. So make sure to download the Blocks app and check it out.
Three cruise worthy stories today, let's get into it for our first life. Three sixty The Kids Tracking software has launched its Nasdaq IPO, which means it will now be due listed on the ASX and the NASDAK.
More listings, more opportunities, Give me the rundown jazz Okay, So Live.
Three sixty is what they call a family social networking app. It was launched back in two thousand and nine and listed on the ASX in twenty nineteen.
In other words, it's the ultimate tool for helicopter parents who want to track their children's every single movement.
And as she after Life three sixty bought Tile for two hundred and five million bucks, they're pretty much tracking anything that does or does not move but Jazz.
Despite the creepy nature, this app is growing and growing.
Yep, we're talking more than sixty one million people using the app each month.
In March, Jazz Life three sixty saw its revenue jump by thirty three percent, and.
Then in May this year, during its quarterly earnings, the CEO announced they plan to list on the Nasdaq as well as the ASX.
And clearly they ain't messing around because the capital raise is officially underway.
Yeah, Life three sixty will i appeal on Monday on the Nasdaq, raising no more than one hundred million dollars as part of this float. Supposedly, the dual listing is about getting increased exposure to major investors in the US.
In other words, we don't think the Australian investors value our business high in er.
YEP, so tell me I share what is the key learning here?
A duel listing refers to when a company lists itself on multiple stock exchanges.
Now, a duel listing isn't common, but it's also not so uncommon.
For example, when after Pay was acquired by Block blocked it another listing on the AX.
YEP and mining companies BHP and riotin to also have duel listing.
And Jazz what's the idea behind this duel listing.
Well, it can provide more avenues to access investors when a company wants to raise capital.
And potentially allow for more trading time if the exchanges are open at different times.
But I Shay Life Throw sixty CEO reckons that Australian shareholders just don't value their growth.
But in saying that, Jazz Life three sixty risks doing this duel listing at their own peril.
You see Ozzie tech companies like wis Tech, Promedicus and Zero. They actually all trade at a premium to their US counterparts.
And that's thanks to the scarcity of global growth companies listed on the AX.
So Life Throw sixty has clearly chosen to move on from being a big tech fish in a more pond.
So our second story, Meta is testing a new feature on Instagram which will force users to watch ads on videos that you can't scroll past.
I would hardly call this a feature. HD sounds very painful, so tell me more.
So. We all know Instagram, the social media app that was originally called Bourbon b U.
RBN, and it was acquired by Facebook back in twenty twelve for one billion US dollars.
But just since then, Instagram has grown to become one of the cornerstone apps in the Meta group of companies.
We're talking over two billion monthly active users swiping through Insta.
Stories, which they stole from Snap, watching instareels, which they stole from TikTok.
But as she Instagram continues to transition from being a photo sharing app to now a video sharing network.
And now they're starting to explore new ways to monetize the audience.
One of these ways is making some ads on Instagram reels and stories unskippable, or.
As Instagram likes to call it, an ad.
Break makes it so much more palatable now.
It's similar to the free version of YouTube, which requires users to view ads before and in the middle of watching videos.
And for now, this ad break feature is just a test.
But it goes to show the extent that Matter is willing to go to to continue increasing their AD revenues.
What is the key learning here?
Tech companies need to strike a careful balance between user experience and revenue.
It's the ultimate trader because more ads generally means more revenue for the company.
But more ads will also mean more frustrated Instagram users.
Interestingly, Ahchi, the Instagram spokesperson, said, We're always testing new formats that can drive value for advertisers.
Hello, what about formats for your two billion monthly active users?
Exactly and ag This is exactly what happened to MySpace after it was acquired by News Corp in two thousand and five. YEP.
It focused on growing revenue rather than improving its tech platform and usability.
And this led to intrusive ads and a poor quality product that ultimately forced News Corp. To sell the business for just thirty five million dollars in twenty eleven. For our third and final story book, Topia is cutting fifty employees and losing its short lived CEO as it struggles to continue staying up float sounds.
Like a page turner, Jazz or what's going on here?
Okay? So book Toopier is the Aussie online bookstore that was founded in two thousand and four and they listed on the ASX in December twenty twenty.
It also owns bookstore chains like Anguson, Robertson and BookWorld remember those Just.
That is definitely a throwback in a half.
And now book Toopia is facing some rough orders, having announced that it's acting around fifty jobs from the business.
And they've also withdrawn their earnings guidance.
And that's not all, Jazz tell me more. Booktopia doesn't even have the money available to make these redundancies, so.
It's taking out a one million dollar debt to help pay for the costs associated with the redundancy.
And if it all couldn't get worse, the company CEO has also stepped down, and.
That's after book Tobia's founder was ousted from the company in twenty twenty two by the board.
Yep, the founder was booted from his own company.
But may may you come back now? So tell me what is the key learning here?
When a founder remains CEO after their company lists, they need to adapt to a different set of rules.
See once a company lists downers need a shift from the startup mindset and.
They need to focus more on shareholder value and the sustainability of the company.
Ash well, founders do have the best inside knowledge about the company, it doesn't always mean they'll make the best leaders. In Booktobia's case, their co founder was kicked out of his position as CEO by the board.
That was after an investigation discovered that he'd sold many of his shares in the company just before a really ugly earnings update and.
HJA, with Booktobia's future potentially in shambles, they've now actually brought back this co found out for the next six.
Months, which could be a good news for the company or it may spell more trouble.
Money is awkward, there is no doubting that, and that's why we have built this month's course in the Flex Academy giving you the tools to have money conversations with your partner, your friends, or your family. So make sure to download the Flex out and check it all out.
Thanks for listening and we'll see you on Friday.