Day: September 18, 2020

Unity Software has strong opening, gaining 31% after pricing above its raised range

Whoever said you can’t make money playing video games clearly hasn’t taken a look at Unity Software’s stock price.

On its first official day of trading, the company rose more than 31%, opening at $75 per share before closing the day at $68.35. Unity’s share price gains came after last night’s pricing of the company’s stock at $52 per share, well above the range of $44 to $48 which was itself an upward revision of the company’s initial target.

Games like “Pokémon GO” and “Iron Man VR” rely on the company’s software, as do untold numbers of other mobile gaming applications that use the company’s toolkit for support. The company’s customers range from small gaming publishers to large gaming giants like Electronic Arts, Niantic, Ubisoft and Tencent.

Unity’s IPO comes on the heels of other well-received debuts, including Sumo Logic, Snowflake and JFrog .

TechCrunch caught up with Unity’s CFO, Kim Jabal, after-hours today to dig in a bit on the transaction.

According to Jabal, hosting her company’s roadshow over Zoom had some advantages, as her team didn’t have to focus on tackling a single geography per day, allowing Unity to “optimize” its time based on who the company wanted to meet, instead, of say, whomever was free in Boston or Chicago on a particular Tuesday morning.

Jabal’s comments aren’t the first that TechCrunch has heard regarding roadshows going well in a digital format instead of as an in-person presentation. If the old-school roadshow survives, we’ll be surprised, though private jet companies will miss the business.

Talking about the transaction itself, Jabal stressed the connection between her company’s employees, value  and their access to that same value. Unity’s IPO was unique in that existing and former employees were able to trade 15% of their vested holdings in the company on day one, excluding “current executive officers and directors,” per SEC filings.

That act does not seemed to have dampened enthusiasm for the company’s shares, and could have helped boost early float, allowing for the two sides of the supply and demand curves to more quickly meet close to the company’s real value, instead of a scarcity-driven, more artificial figure.

Regarding Unity’s IPO pricing, Jabal discussed what she called a “very data-driven process.” The result of that process was an IPO price that came in above its raised range, and still rose during its first day’s trading, but less than 50%. That’s about as good an outcome as you can hope for in an IPO.

One final thing for the SaaS nerds out there. Unity’s “dollar-based net expansion rate” went from very good to outstanding in 2020, or in the words of the S-1/A:

Our dollar-based net expansion rate, which measures expansion in existing customers’ revenue over a trailing 12-month period, grew from 124% as of December 31, 2018 to 133% as of December 31, 2019, and from 129% as of June 30, 2019 to 142% as of June 30, 2020, demonstrating the power of this strategy.

We had to ask. And the answer, per Jabal, was a combination of the company’s platform strength and how customers tend to use more of Unity’s services over time, which she described as growing with their customers. And the second key element was 2020’s unique dynamics that gave Unity a “tailwind” thanks to “increased usage, particularly in gaming.”

Looking at our own gaming levels in 2020 compared to 2019, that checks out.

This post closes the book on this week’s IPO class. Tired yet? Don’t be. Palantir is up next, and then Asana .

*Really* miss flying? Join over 100 other weirdos on this 7-hour ‘flight to nowhere’.

*Really* miss flying? Join over 100 other weirdos on this 7-hour 'flight to nowhere'.

New seats on Qantas’ previously sold out “Great Southern Land” scenic joy flight have now been made available, giving travel-starved Australians another chance to pay almost AU$800 to board a plane, fly in a big circle for seven and a half hours, and touch down in the exact same place they took off from.

Australian airline Qantas revealed their Great Southern Land flight on Thursday, offering Sydney passengers the chance to buzz over iconic destinations such as the Great Barrier Reef, Uluru, and Bondi Beach. They won’t be able to disembark at any of these places though, considering state borders have been closed due to the coronavirus. Instead, passengers will merely glimpse these iconic locations out the windows of a low-flying B787 Dreamliner, weather permitting. Read more…

More about Australia, Airlines, Scenic, Qantas, and Flights

Apple will launch its online store in India next week

Apple will launch its online store in India on September 23, bringing a range of services directly to customers in the world’s second largest smartphone market for the first time in over 20 years since it began operations in the country.

The company, which currently relies on third-party online and offline retailers to sell its products in India, said its online store will offer AppleCare+, which extends the warranty on its hardware products by up to two years, as well as a trade-in program to let customers access discounts on purchase of new iPhones by returning previous models. These programs were previously not available in India. Customers will also be able to buy Macs with custom configuration

“We know our users are relying on technology to stay connected, engage in learning, and tap into their creativity, and by bringing the Apple Store online to India, we are offering our customers the very best of Apple at this important time,” said Deirdre O’Brien, Apple’s senior vice president of Retail + People, in a statement.

TechCrunch reported in January that the iPhone-maker was planning to launch its online store in India in Q3 this year. A month later, Apple CEO Tim Cook confirmed the development, adding that Apple will also launch its first physical store in the country next year.

On its website, Apple says it also plans to offer financing options to customers in India, and students will receive additional discounts on Apple products and accessories. Starting next month, it will also let customers check out free online sessions on music and photography from professional creatives. And if they wish, they can engrave emoji or text on their AirPods in several Indian languages.

The launch of the online store will mark a new chapter in Apple’s business in India, where about 99% of the market is commanded by Android smartphones. The iPhone-maker has become visibly more aggressive in India in recent years. In July, the company’s contract manufacturing partner (Foxconn) began assembling the iPhone 11 in India. This was the first time the company was locally assembling a current-generation iPhone model in the country.

Assembling handsets in India enables smartphone vendors — including Apple — to avoid roughly 20% import duty that the Indian government levies on imported electronics products. Lowering the cost of its products is crucial for Apple in India, which already sells several of its services including Apple Music and TV+ at record-low price in the country.

The starting price of iPhone 11 Pro Max is $1,487 in India, compared to $1,099 in the U.S. The AirPods Pro, which sells at $249 in the U.S., was made available in India at $341 at the time of launch.

We know how important it is for our customers to stay in touch with those they love and the world around them. We can’t wait to connect with our customers and expand support in India with the Apple Store online on September 23! 🇮🇳https://t.co/UjR31jzEaY

— Tim Cook (@tim_cook) September 18, 2020