This is what the Flux.
I'm Brett and I'm Justin and it's Friday, the fifteenth of November.
Does he boy?
We know that Donald Trump won the presidential election last week and now he's elected Elon Musk to a newly formed government department named Department of Government Efficiency or it's called by a zachronym doge. Next minute, Elon's favorite crypto coin, doge coin, jumps by eighty nine percent.
Coincidence, highly unlikely.
We live in an upside world, be man, yep, Flux have every single week, we dropped three business or finance questions on a Friday and the first person to answer them correctly with a cold hard fifty dollars cash to start off the weekend. So if you want to win fifty bucks to kick off the weekend on a high, make sure to download the Flux app, turn your notifications on, and had your sharpest brain ready to rumble.
So you can win at money three triumphant stories today, Dozy boy, let's do it for our first zero. The ASX listed accounting software has seen at share price jump to a record high despite slowing subscriptions.
Nothing like accounting numbers and figures to get the juices flowing, Beman, so tell me more.
Well, Zero with an X is the accounting software that was actually founded in New Zealand in two thousand and six.
It was one of the og accounting platforms to launch in the cloud when others were still on cd.
ROM, and it grew from a humble New Zealand based company to a global accounting giant with over four point two million subscribers.
And now Bman Zero's announced its operating earnings jump by fifty percent to over three hundred and eleven million New Zealand dollars over the past six months.
Now, this is because they've jacked up the price of subscriptions and grown subscriptions overall by six percent.
But Beman subscriber growth in North America actually fell.
So juse wait, while their growth may have slowed a bit in some places, they've really been keeping an eye on their numbers.
In particular the rule of forty number.
Oh yes, So what is the key learning here?
The rule of forty is the idea that a software company's growth rate and its profit margin should exceed forty percent when combined. Now, simply that could mean twenty percent growth rate and twenty percent profit margin or that could mean thirty per cent growth rate, ten percent profit margin and jusboy.
In recent years, the rule of forty has been used pretty widely by software companies around the world.
We're talking Salesforce and Adobe and even Zoom now be man. Back in November last year, Zero announced their plans to achieve the rule of forty. But at the time they were sitting pretty at thirty three percent.
But by May twenty twenty four, Zero cracked over the forty percent mark for the first time.
And now they've hit forty four percent in the most recent.
Huh So, despite slowing subscriber numbers, investors have confidence that Zero is hitting its main goal.
For our second story, Amazon has launched an ultra low cost platform called Amazon Hall to compete head on against Shean and TIMU.
Got a bit of Facebook and TikTok about it. Don't you reckon, judziboy. This battle is just beginning. So have you got that popcorn out?
I know you do, he tell me.
More so, man, we know that Amazon Ahavason might have started as an online bookstore, but it's now the world's largest e commerce company.
We're talking turning over billions per annim in products that.
Be man Over the six years, Timu and she In have vented the US, they vented the UK, Australia and many other countries in the Western world as well.
Now, the appeal for these platforms from consumers is not quality.
It's certainly not delivery times.
And certainly not customer service.
Juz boy, No, no, no, It is all about pricing, scarily cheap pricing that is eaten into Amazon's market.
So now Amazon has launched a new online store called Amazon Hall with heavily discounted items.
Even designed to mimic she In and Timu, with emojis like rocket ships or fire to show urgency and low prices.
And juzzy boy unlike Amazon's traditional one day delivery times. Amazon has conceded that with lower prices comes slower shipping.
But they claim this is responding to customer demand ultra low price goods, even if it means slower shipping.
But Amazon is hoping Hall will add incremental revenue through a new market segment.
So what is the key learning here?
Market segmentation is where a business creates unique offerings to target different customer groups. Now, Beman, Amazon's ultimately segment venting the customers in the costs their speed buyers so juzyboyd. By offering ultralow cost items with slower shipping times, Amazon is appealing to price sensitive shoppers.
Particularly younger consumers who are currently shopping on platforms like Timu and she.
In fact, a study by our friends at eMarketer revealed that forty four percent of US gen z is make at least one purchase on she In every month, and forty one percent do the same on Teamu.
How can you not buy a mesh laundry bag for one dollar? More cleaning products that definitely.
Don't work for Amazon.
The key to success will be its ability to differentiate Amazon Hall from its standard offering.
And also ensure that it a're alienating its larger base of customers.
For our third and final story, Shopify has seen at share price spike more than twenty six percent after its income more than doubled in the most recent quarter.
Holy smokerinees their high share price is January twenty twenty two.
So tell me more, b man, well, juziboy, some background for you.
Shopify is the e commerce platform that helps people and businesses create online stores.
Yep, your old school Delhi that finally makes its way into the world wide Web, probably Shopify.
But also some big name brands are on there like Hines and Fitbit and Sephora, as well as another one point seven million businesses around the world.
Now, be man at Shopify is a now a mega jump in its third quarter earning.
Yeah, we're talking a jump of one hundred and thirty two percent in operating income.
That's year on year, Juzzy boy and be Man. What was the reason for its revenue and income growth?
Well, Shopify saw its gross merchandise volume increase twenty four percent for the quarter to nearly seventy billion US dollars.
And be Man, That ain't it? Because it also reckons it will see even more growth in the next quarter. They can see the future, con't they, Juzzy boy. So I'm wondering what is the key learning here? GMV, or gross merchandise volume, is a key metric used by e commerce companies to measure the total value of goods sold through their platform.
Now, GMV has become an important indicator of how much activity is happening on the platform.
For Shopify, GMV aligns closely with the success of its merchants.
That's because the higher the GMV, the greater the volume of transactions that Shopify facilitates. For Shopify, they have two key ways to really increase that GMV.
They can increase the number of merchants on their platform, or a.
Juzzy Boy, they can see an increased value of goods sold from each merchant.
And right now it seems like Shopify is achieving both and that's why.
Investors are pretty down excited by these results.
Be man a hot little tip that doge coin discussion we at the beginning of the pot and that may or may not be one of the questions in Quick six today. So fluxdam if you want to win fifty bucks and kick up your weekend and a HI, make sure to download the Flux out purne your notifications on to win at money.
Love It juzzy boy. Thanks for listening and we'll see you on Monday.