1 00:00:05,240 --> 00:00:07,920 Speaker 1: This is what the Flux. I'm Brett and I'm justin 2 00:00:08,000 --> 00:00:10,280 Speaker 1: at it. Monday, the tewond of September, Juzzy boy. 3 00:00:10,320 --> 00:00:13,240 Speaker 2: Each in every tax time, the Australian Tax Office warns 4 00:00:13,320 --> 00:00:15,360 Speaker 2: us of another group that they will be eyeing off. 5 00:00:15,440 --> 00:00:18,760 Speaker 2: And this year it's people buying assets under businesses and 6 00:00:18,800 --> 00:00:22,360 Speaker 2: these people enjoy using them for personal use. Now get this, 7 00:00:22,480 --> 00:00:25,400 Speaker 2: The ACO will use insurance company data to cross check 8 00:00:25,480 --> 00:00:28,040 Speaker 2: that owners of things like art or yachts or even 9 00:00:28,160 --> 00:00:30,800 Speaker 2: racehorses are reporting their tax obligations correctly. 10 00:00:31,120 --> 00:00:32,760 Speaker 1: Man, I got a true story for you last week. 11 00:00:32,800 --> 00:00:34,520 Speaker 1: I got to written your notice from my car insurer 12 00:00:34,560 --> 00:00:37,840 Speaker 1: whose name shalnov be mentioned. Twelve hundred buckaroonis I checked 13 00:00:37,840 --> 00:00:40,760 Speaker 1: online same insurer. It was seven hundred and sixty dollars. 14 00:00:40,840 --> 00:00:42,800 Speaker 1: I kid you not. And that's why I'm so excited 15 00:00:42,840 --> 00:00:45,479 Speaker 1: about our academy this month, the Insurance Crash Course. It 16 00:00:45,560 --> 00:00:47,400 Speaker 1: runs you through all the different insurances out there, how 17 00:00:47,400 --> 00:00:49,080 Speaker 1: to decide what you need and how to get a 18 00:00:49,080 --> 00:00:50,600 Speaker 1: better deal. To make sure to check it out in 19 00:00:50,640 --> 00:00:51,800 Speaker 1: the FUX Academy this month. 20 00:00:52,000 --> 00:00:55,000 Speaker 2: Three dumb founding stories Today, Juzzy boy, let's do it 21 00:00:55,040 --> 00:00:57,880 Speaker 2: for our first Adore Beauty has seen its sales jump 22 00:00:57,960 --> 00:01:00,680 Speaker 2: more than seven percent. But now it's making a slightly 23 00:01:00,800 --> 00:01:03,880 Speaker 2: unconventional move into this physical world of ours. 24 00:01:04,120 --> 00:01:06,080 Speaker 1: The old e commerce is taking it to the physical 25 00:01:06,120 --> 00:01:08,800 Speaker 1: store and rivaling people like Maya. So tell me more. 26 00:01:08,680 --> 00:01:11,360 Speaker 2: Well, Josey boy Adore Beauty is the e commerce retailer 27 00:01:11,400 --> 00:01:13,160 Speaker 2: that launched in nineteen ninety nine. 28 00:01:12,959 --> 00:01:14,800 Speaker 1: And since then it's grown to a product list of 29 00:01:14,880 --> 00:01:17,800 Speaker 1: over eleven thousand beauty care products with a little touch 30 00:01:17,800 --> 00:01:18,320 Speaker 1: of Tim. 31 00:01:18,120 --> 00:01:21,400 Speaker 2: Tamu and along the journey there was that ASX listing 32 00:01:21,440 --> 00:01:22,480 Speaker 2: in twenty twenty. 33 00:01:22,200 --> 00:01:24,200 Speaker 1: Which, by the bye, their share price is sitting at 34 00:01:24,200 --> 00:01:26,680 Speaker 1: about one fifth of its listing price during COVID. But 35 00:01:26,800 --> 00:01:29,040 Speaker 1: now b man Adore Beauty is making its way back 36 00:01:29,040 --> 00:01:31,440 Speaker 1: because it's announced a seven percent gain in their full 37 00:01:31,480 --> 00:01:34,319 Speaker 1: year revenue over one hundred and ninety five million bucks and. 38 00:01:34,319 --> 00:01:36,000 Speaker 2: Just having a look here, and that profit jumped four 39 00:01:36,040 --> 00:01:38,720 Speaker 2: hundred and eighty nine percent. I would argue that's huge. 40 00:01:38,360 --> 00:01:40,440 Speaker 1: But just on two point two million dollars. 41 00:01:40,560 --> 00:01:43,320 Speaker 2: Oh no, So what were the big changes this year 42 00:01:43,319 --> 00:01:43,880 Speaker 2: for a doll. 43 00:01:43,800 --> 00:01:46,399 Speaker 1: They're celebrating they've now got over eight hundred thousand active 44 00:01:46,400 --> 00:01:49,360 Speaker 1: customers and they pushed a big, big, above the line 45 00:01:49,400 --> 00:01:52,680 Speaker 1: marketing campaign, but now they're going one better by opening 46 00:01:52,680 --> 00:01:55,840 Speaker 1: physical stores in Victoria and in Queensland. So what is 47 00:01:55,840 --> 00:01:56,640 Speaker 1: the key learning here? 48 00:01:56,680 --> 00:02:00,000 Speaker 2: Traditionally we've seen physical retailers expand into the online space 49 00:02:00,240 --> 00:02:03,160 Speaker 2: to reach more customers, but now the reverse is starting 50 00:02:03,160 --> 00:02:03,520 Speaker 2: to happen. 51 00:02:03,560 --> 00:02:05,720 Speaker 1: Be Man e commerce retailers like a door Beauty, They're 52 00:02:05,720 --> 00:02:07,960 Speaker 1: starting to move into the physical retail world. 53 00:02:07,960 --> 00:02:10,000 Speaker 2: And this trend is because of the growing importance of 54 00:02:10,040 --> 00:02:11,520 Speaker 2: a multi channel approach yep. 55 00:02:11,520 --> 00:02:13,680 Speaker 1: This has worked for other e commerce companies which now 56 00:02:13,680 --> 00:02:17,000 Speaker 1: have showrooms and stores to support their online presence. Think 57 00:02:17,040 --> 00:02:19,720 Speaker 1: Sleeping Duck or Koala and many others and be Man. 58 00:02:19,760 --> 00:02:22,800 Speaker 1: It ain't just pure retail players going from online to physical. 59 00:02:22,560 --> 00:02:25,280 Speaker 2: Not what about online travel agent Luxury Escapes. They've got 60 00:02:25,280 --> 00:02:26,919 Speaker 2: a strong online presence. 61 00:02:26,520 --> 00:02:28,960 Speaker 1: And recently expand it into having a physical presence in 62 00:02:28,960 --> 00:02:29,880 Speaker 1: shopping centers too. 63 00:02:30,120 --> 00:02:33,720 Speaker 2: So while online shopping offers convenience and reach, physical stores 64 00:02:33,720 --> 00:02:36,880 Speaker 2: provide an opportunity for customers to interact with products and 65 00:02:36,960 --> 00:02:38,720 Speaker 2: services in a more tangible way. 66 00:02:38,560 --> 00:02:41,280 Speaker 1: Which is particularly valuable in industries like beauty. 67 00:02:41,560 --> 00:02:45,040 Speaker 2: For our second story, Apple and Nvidia are in talks 68 00:02:45,080 --> 00:02:47,680 Speaker 2: to invest in open Ai as part of its latest 69 00:02:47,720 --> 00:02:51,480 Speaker 2: capital raise, which would value OpenAI at one hundred billion 70 00:02:51,639 --> 00:02:52,600 Speaker 2: US dollars. 71 00:02:52,680 --> 00:02:55,720 Speaker 1: Holy smoker, Rounis, this is getting real and Microsoft surely 72 00:02:55,760 --> 00:02:56,839 Speaker 1: cannot be happy about this one. 73 00:02:56,919 --> 00:02:59,239 Speaker 2: So tell me more, well, jazy boy. OpenAI is a 74 00:02:59,280 --> 00:03:02,040 Speaker 2: company that was co founded by Sam Oltman and even 75 00:03:02,040 --> 00:03:04,760 Speaker 2: included Elon Musk on its board in its early day. 76 00:03:04,639 --> 00:03:07,280 Speaker 1: And of course it's the company behind the extremely powerful, 77 00:03:07,400 --> 00:03:09,720 Speaker 1: the sometimes hallucinogetic GPT. 78 00:03:09,919 --> 00:03:12,760 Speaker 2: Now johnsy boy, Microsoft was one of the earlier investors 79 00:03:12,800 --> 00:03:13,440 Speaker 2: in open Ai. 80 00:03:13,480 --> 00:03:16,040 Speaker 1: It invested one billion dollars in open Ai in twenty nineteen, 81 00:03:16,120 --> 00:03:18,440 Speaker 1: and then ten billion US dollars in twenty twenty three. 82 00:03:18,560 --> 00:03:20,920 Speaker 2: Overall, it now holds a forty nine percent stake in 83 00:03:20,960 --> 00:03:21,480 Speaker 2: open Ai. 84 00:03:21,639 --> 00:03:24,280 Speaker 1: But now new reports have revealed that in Vidia and 85 00:03:24,480 --> 00:03:27,200 Speaker 1: Apple also want a slice of the open Ai pie. 86 00:03:27,360 --> 00:03:31,000 Speaker 2: YEP, they're considering investing in OpenAI's latest caprets, which would 87 00:03:31,040 --> 00:03:34,320 Speaker 2: value the biers as mentioned, at one hundred billion US dollars. 88 00:03:34,120 --> 00:03:36,480 Speaker 1: Which blah blah blye is a twenty percent uplift on 89 00:03:36,520 --> 00:03:38,440 Speaker 1: its valuation from just eight months ago. 90 00:03:38,640 --> 00:03:41,240 Speaker 2: Kind of makes sense that these two would invest YEP. 91 00:03:41,280 --> 00:03:43,880 Speaker 1: In Vidia designs and supplies the AI chips to power 92 00:03:43,960 --> 00:03:44,520 Speaker 1: open Ai. 93 00:03:44,520 --> 00:03:46,760 Speaker 2: And Apple has announced a new chatbot on the iPhone 94 00:03:46,760 --> 00:03:48,680 Speaker 2: which just so happens to use open Ai. 95 00:03:48,840 --> 00:03:52,000 Speaker 1: Seems like a very strategic investment for these two companies. 96 00:03:52,200 --> 00:03:53,800 Speaker 2: MM So what is the key learning here? 97 00:03:53,840 --> 00:03:56,800 Speaker 1: Strategic investments are critical in the business world because they 98 00:03:56,840 --> 00:03:59,160 Speaker 1: allow companies to leverage each other's strengths. 99 00:03:59,200 --> 00:04:01,920 Speaker 2: Now, for Apple, investing in open ai could help close 100 00:04:01,960 --> 00:04:04,360 Speaker 2: the AI gap with competitors like Google and Microsoft. 101 00:04:04,360 --> 00:04:07,000 Speaker 1: For in video, it's all about securing a major customer 102 00:04:07,040 --> 00:04:08,600 Speaker 1: for their AI chips, which have. 103 00:04:08,560 --> 00:04:12,400 Speaker 2: Already driven a huge surge in in Vidia's sales and profits. 104 00:04:12,440 --> 00:04:14,560 Speaker 1: So investing one hundred million dollars into open air is 105 00:04:14,600 --> 00:04:16,120 Speaker 1: pocket change for these two behemits. 106 00:04:16,240 --> 00:04:18,640 Speaker 2: What about for Apple, who has more than sixty one 107 00:04:18,640 --> 00:04:19,600 Speaker 2: billion US dollars in. 108 00:04:19,560 --> 00:04:22,359 Speaker 1: Cash and in Vidia has more than thirty one billion US. 109 00:04:22,160 --> 00:04:25,280 Speaker 2: Dollars in cash, especially if the investment is about securing 110 00:04:25,440 --> 00:04:27,000 Speaker 2: access to cutting edge tech. 111 00:04:26,839 --> 00:04:28,480 Speaker 1: And b man, you say the first time a tech 112 00:04:28,520 --> 00:04:30,960 Speaker 1: company's made a strategic investment like this, I. 113 00:04:30,960 --> 00:04:33,800 Speaker 2: Remember where an old Google's parent company, Alphabet, invested nine 114 00:04:33,920 --> 00:04:36,520 Speaker 2: hundred mili into SpaceX just to get some exposure to 115 00:04:36,560 --> 00:04:37,679 Speaker 2: satellite based internet. 116 00:04:38,279 --> 00:04:41,640 Speaker 1: For our third and final story, setires share price dropped 117 00:04:41,680 --> 00:04:44,480 Speaker 1: twenty percent last week after it announced its annual learnings 118 00:04:44,520 --> 00:04:47,000 Speaker 1: it would be twenty percent lower than the previous year. 119 00:04:47,120 --> 00:04:50,159 Speaker 2: It's just bad news after bad news for old satire investors. 120 00:04:50,160 --> 00:04:51,440 Speaker 2: So what's going on here, Jossy boy? 121 00:04:51,440 --> 00:04:54,719 Speaker 1: Well. Seti is the Australian online luxury fashion retailer. It 122 00:04:54,760 --> 00:04:56,960 Speaker 1: started in twenty seventeen and listed on the ASEX in 123 00:04:57,000 --> 00:04:59,000 Speaker 1: twenty twenty and to say it's had a rap year 124 00:04:59,080 --> 00:05:01,120 Speaker 1: would be understand of the millennium. 125 00:05:01,200 --> 00:05:01,360 Speaker 2: Yeah. 126 00:05:01,400 --> 00:05:03,480 Speaker 1: Over the last few months, Seti has been grilled over 127 00:05:03,520 --> 00:05:04,279 Speaker 1: its business model. 128 00:05:04,480 --> 00:05:06,880 Speaker 2: They were also grilled over their supply chain and. 129 00:05:06,839 --> 00:05:09,000 Speaker 1: If that wasn't bad enough, it's been under fire for 130 00:05:09,120 --> 00:05:10,160 Speaker 1: tax avoidance as well. 131 00:05:10,200 --> 00:05:12,479 Speaker 2: And now dazy boy Setire has announced in its annual 132 00:05:12,480 --> 00:05:15,520 Speaker 2: report that earnings for the twelve months to June will 133 00:05:15,520 --> 00:05:17,800 Speaker 2: be twenty percent lower than the same time last year. 134 00:05:17,880 --> 00:05:20,080 Speaker 1: Yep, they reported a ten and a half million dollar profit, 135 00:05:20,120 --> 00:05:22,839 Speaker 1: whereas last year it was almost sixteen million bucks. 136 00:05:22,880 --> 00:05:25,440 Speaker 2: And this new cent centaire is already precarry a share 137 00:05:25,480 --> 00:05:26,560 Speaker 2: price down twenty percent. 138 00:05:26,640 --> 00:05:28,880 Speaker 1: In fact, its share price is now down sixty four 139 00:05:28,880 --> 00:05:31,240 Speaker 1: percent this year alone, and it wasn't just this time. 140 00:05:31,320 --> 00:05:35,159 Speaker 2: Johanna Boyd setires earnings report was published unaudited YEP. 141 00:05:35,240 --> 00:05:37,800 Speaker 1: It's auditors are still try and get to the bottom 142 00:05:37,839 --> 00:05:40,240 Speaker 1: of Seti's revenue recognition. 143 00:05:39,920 --> 00:05:42,000 Speaker 2: Interesting, So what is the key eLearning here? 144 00:05:42,120 --> 00:05:45,560 Speaker 1: Revenue recognition is an accounting principle that determines when and 145 00:05:45,680 --> 00:05:48,320 Speaker 1: how a business's revenue has been earned, and. 146 00:05:48,240 --> 00:05:51,159 Speaker 2: This has been ongoing and challenging, and it's had controversial 147 00:05:51,200 --> 00:05:54,320 Speaker 2: for old Satire. Yeah, because setire operates a drop shipping model, 148 00:05:54,360 --> 00:05:56,919 Speaker 2: so it's a middleman basically between suppliers and customers, but 149 00:05:56,960 --> 00:05:59,080 Speaker 2: it doesn't hold any of the stock itself, and this 150 00:05:59,160 --> 00:06:02,640 Speaker 2: has got setires auditors scratching their heads about whether setire 151 00:06:02,800 --> 00:06:04,480 Speaker 2: is a seller of goods or just an agent. 152 00:06:04,560 --> 00:06:06,279 Speaker 1: If setire is just an agent, it will have to 153 00:06:06,360 --> 00:06:10,120 Speaker 1: change its revenue model and only counted sales margin as revenue, 154 00:06:10,160 --> 00:06:13,320 Speaker 1: which probably means it'll be reporting much lower revenue overall, 155 00:06:13,360 --> 00:06:15,520 Speaker 1: and this would have a major impact on how invested 156 00:06:15,600 --> 00:06:17,320 Speaker 1: c Setire and its financial health. 157 00:06:17,320 --> 00:06:19,400 Speaker 2: We've also seen this play out in the beauty sector. 158 00:06:19,560 --> 00:06:22,839 Speaker 2: When BWX reported revenue recognition issues. 159 00:06:22,640 --> 00:06:25,080 Speaker 1: YEP, they came under fire for forcing more products on 160 00:06:25,160 --> 00:06:28,080 Speaker 1: distributors to inflate their sales figures, and. 161 00:06:28,040 --> 00:06:30,200 Speaker 2: BWX is now in voluntary. 162 00:06:29,800 --> 00:06:32,120 Speaker 1: Administration, so SETAI is going to have to do some 163 00:06:32,200 --> 00:06:35,919 Speaker 1: serious reputational rehab if it was indeed found recording revenue 164 00:06:35,920 --> 00:06:38,760 Speaker 1: incorrectly flex down. There is no sweeter feeling than finding 165 00:06:38,800 --> 00:06:40,680 Speaker 1: a better deal in your insurance, and we have it 166 00:06:40,760 --> 00:06:43,440 Speaker 1: all covered in the Flux Insurance Academy this month, what 167 00:06:43,520 --> 00:06:46,280 Speaker 1: different insurances actually are, what they're needed for, and whether 168 00:06:46,279 --> 00:06:48,279 Speaker 1: they're worth getting at your current stage in like so 169 00:06:48,320 --> 00:06:50,400 Speaker 1: make sure you check out the Flux Academy this month. 170 00:06:50,400 --> 00:06:52,600 Speaker 2: Thanks for listening, and we'll see you on Wednesday.