Speaker 1: This is what the Flux.
Speaker 2: I'm justin and I'm harsh deep and it's Wednesday, the
Speaker 2: fifth of June HG.
Speaker 1: After nearly one hundred years of operations in Australia, he
Speaker 1: and O cruises, you're shutting. It's Australian operations. They reckon
Speaker 1: high poor charges and the difficulty of actually finding a
Speaker 1: place to park is all a bit too much.
Speaker 2: Oh yes, Flux fam. Have you ever had a friend
Speaker 2: owe you money but you've never chased them up because
Speaker 2: he felt too awkward? What about a family member asked
Speaker 2: you for financial health? Money is awkward, but it doesn't
Speaker 2: have to be. That's why we've built this month's course
Speaker 2: in the Flux Academy where we give you the tools
Speaker 2: to have money conversations with your partner, your friends, and
Speaker 2: your family. So make sure to download the Blocks app
Speaker 2: and check it out.
Speaker 1: Three cruise worthy stories today, let's get into it for
Speaker 1: our first life. Three sixty The Kids Tracking software has
Speaker 1: launched its Nasdaq IPO, which means it will now be
Speaker 1: due listed on the ASX and the NASDAK.
Speaker 2: More listings, more opportunities, Give me the rundown jazz Okay,
Speaker 2: So Live.
Speaker 1: Three sixty is what they call a family social networking app.
Speaker 1: It was launched back in two thousand and nine and
Speaker 1: listed on the ASX in twenty nineteen.
Speaker 2: In other words, it's the ultimate tool for helicopter parents
Speaker 2: who want to track their children's every single movement.
Speaker 1: And as she after Life three sixty bought Tile for
Speaker 1: two hundred and five million bucks, they're pretty much tracking
Speaker 1: anything that does or does not move but Jazz.
Speaker 2: Despite the creepy nature, this app is growing and growing.
Speaker 1: Yep, we're talking more than sixty one million people using
Speaker 1: the app each month.
Speaker 2: In March, Jazz Life three sixty saw its revenue jump
Speaker 2: by thirty three percent, and.
Speaker 1: Then in May this year, during its quarterly earnings, the
Speaker 1: CEO announced they plan to list on the Nasdaq as
Speaker 1: well as the ASX.
Speaker 2: And clearly they ain't messing around because the capital raise
Speaker 2: is officially underway.
Speaker 1: Yeah, Life three sixty will i appeal on Monday on
Speaker 1: the Nasdaq, raising no more than one hundred million dollars
Speaker 1: as part of this float. Supposedly, the dual listing is
Speaker 1: about getting increased exposure to major investors in the US.
Speaker 2: In other words, we don't think the Australian investors value
Speaker 2: our business high in er.
Speaker 1: YEP, so tell me I share what is the key
Speaker 1: learning here?
Speaker 2: A duel listing refers to when a company lists itself
Speaker 2: on multiple stock exchanges.
Speaker 1: Now, a duel listing isn't common, but it's also not
Speaker 1: so uncommon.
Speaker 2: For example, when after Pay was acquired by Block blocked
Speaker 2: it another listing on the AX.
Speaker 1: YEP and mining companies BHP and riotin to also have
Speaker 1: duel listing.
Speaker 2: And Jazz what's the idea behind this duel listing.
Speaker 1: Well, it can provide more avenues to access investors when
Speaker 1: a company wants to raise capital.
Speaker 2: And potentially allow for more trading time if the exchanges
Speaker 2: are open at different times.
Speaker 1: But I Shay Life Throw sixty CEO reckons that Australian
Speaker 1: shareholders just don't value their growth.
Speaker 2: But in saying that, Jazz Life three sixty risks doing
Speaker 2: this duel listing at their own peril.
Speaker 1: You see Ozzie tech companies like wis Tech, Promedicus and Zero.
Speaker 1: They actually all trade at a premium to their US counterparts.
Speaker 2: And that's thanks to the scarcity of global growth companies
Speaker 2: listed on the AX.
Speaker 1: So Life Throw sixty has clearly chosen to move on
Speaker 1: from being a big tech fish in a more pond.
Speaker 2: So our second story, Meta is testing a new feature
Speaker 2: on Instagram which will force users to watch ads on
Speaker 2: videos that you can't scroll past.
Speaker 1: I would hardly call this a feature. HD sounds very painful,
Speaker 1: so tell me more.
Speaker 2: So. We all know Instagram, the social media app that
Speaker 2: was originally called Bourbon b U.
Speaker 1: RBN, and it was acquired by Facebook back in twenty
Speaker 1: twelve for one billion US dollars.
Speaker 2: But just since then, Instagram has grown to become one
Speaker 2: of the cornerstone apps in the Meta group of companies.
Speaker 1: We're talking over two billion monthly active users swiping through Insta.
Speaker 2: Stories, which they stole from Snap, watching instareels, which they
Speaker 2: stole from TikTok.
Speaker 1: But as she Instagram continues to transition from being a
Speaker 1: photo sharing app to now a video sharing network.
Speaker 2: And now they're starting to explore new ways to monetize
Speaker 2: the audience.
Speaker 1: One of these ways is making some ads on Instagram
Speaker 1: reels and stories unskippable, or.
Speaker 2: As Instagram likes to call it, an ad.
Speaker 1: Break makes it so much more palatable now.
Speaker 2: It's similar to the free version of YouTube, which requires
Speaker 2: users to view ads before and in the middle of
Speaker 2: watching videos.
Speaker 1: And for now, this ad break feature is just a test.
Speaker 2: But it goes to show the extent that Matter is
Speaker 2: willing to go to to continue increasing their AD revenues.
Speaker 1: What is the key learning here?
Speaker 2: Tech companies need to strike a careful balance between user
Speaker 2: experience and revenue.
Speaker 1: It's the ultimate trader because more ads generally means more
Speaker 1: revenue for the company.
Speaker 2: But more ads will also mean more frustrated Instagram users.
Speaker 1: Interestingly, Ahchi, the Instagram spokesperson, said, We're always testing new
Speaker 1: formats that can drive value for advertisers.
Speaker 2: Hello, what about formats for your two billion monthly active users?
Speaker 1: Exactly and ag This is exactly what happened to MySpace
Speaker 1: after it was acquired by News Corp in two thousand
Speaker 1: and five. YEP.
Speaker 2: It focused on growing revenue rather than improving its tech
Speaker 2: platform and usability.
Speaker 1: And this led to intrusive ads and a poor quality
Speaker 1: product that ultimately forced News Corp. To sell the business
Speaker 1: for just thirty five million dollars in twenty eleven. For
Speaker 1: our third and final story book, Topia is cutting fifty
Speaker 1: employees and losing its short lived CEO as it struggles
Speaker 1: to continue staying up float sounds.
Speaker 2: Like a page turner, Jazz or what's going on here?
Speaker 1: Okay? So book Toopier is the Aussie online bookstore that
Speaker 1: was founded in two thousand and four and they listed
Speaker 1: on the ASX in December twenty twenty.
Speaker 2: It also owns bookstore chains like Anguson, Robertson and BookWorld
Speaker 2: remember those Just.
Speaker 1: That is definitely a throwback in a half.
Speaker 2: And now book Toopia is facing some rough orders, having
Speaker 2: announced that it's acting around fifty jobs from the business.
Speaker 1: And they've also withdrawn their earnings guidance.
Speaker 2: And that's not all, Jazz tell me more. Booktopia doesn't
Speaker 2: even have the money available to make these redundancies, so.
Speaker 1: It's taking out a one million dollar debt to help
Speaker 1: pay for the costs associated with the redundancy.
Speaker 2: And if it all couldn't get worse, the company CEO
Speaker 2: has also stepped down, and.
Speaker 1: That's after book Tobia's founder was ousted from the company
Speaker 1: in twenty twenty two by the board.
Speaker 2: Yep, the founder was booted from his own company.
Speaker 1: But may may you come back now? So tell me
Speaker 1: what is the key learning here?
Speaker 2: When a founder remains CEO after their company lists, they
Speaker 2: need to adapt to a different set of rules.
Speaker 1: See once a company lists downers need a shift from
Speaker 1: the startup mindset and.
Speaker 2: They need to focus more on shareholder value and the
Speaker 2: sustainability of the company.
Speaker 1: Ash well, founders do have the best inside knowledge about
Speaker 1: the company, it doesn't always mean they'll make the best leaders.
Speaker 1: In Booktobia's case, their co founder was kicked out of
Speaker 1: his position as CEO by the board.
Speaker 2: That was after an investigation discovered that he'd sold many
Speaker 2: of his shares in the company just before a really
Speaker 2: ugly earnings update and.
Speaker 1: HJA, with Booktobia's future potentially in shambles, they've now actually
Speaker 1: brought back this co found out for the next six.
Speaker 2: Months, which could be a good news for the company
Speaker 2: or it may spell more trouble.
Speaker 1: Money is awkward, there is no doubting that, and that's
Speaker 1: why we have built this month's course in the Flex
Speaker 1: Academy giving you the tools to have money conversations with
Speaker 1: your partner, your friends, or your family. So make sure
Speaker 1: to download the Flex out and check it all out.
Speaker 2: Thanks for listening and we'll see you on Friday.