el producto #211

🎰 The week in figures

$250B: WeChat says it facilitated ~$250B in mini-program transactions last year, up ~100% over 2019; the company’s app platform enables users to hail rides, order food, etc; WeChat also said mini-games on the platform collectively claimed 500M-plus monthly active users

📈 Q4 financials

Netflix ($250B market cap) Q4 mixed: $6.64B revenue ($6.63 expected); $1.19 EPS ($1.39 expected); 8.5M net new paid subscribers (6.47M expected); now claims 204M total paid subscribers globally; Netflix said it was returning to free positive cash flow and would no longer raise external funding for daily operations; the company also said it would explore returning cash to shareholders

  • Facebook (Wednesday); Revenue: $26.321 billion +24.9%; EPS: $3.16 +23%; Facebook executives indicated in October, when the company reported its surprisingly strong Q3 22% revenue growth, that Q4 looked to be even better. But there are plenty of clouds on Facebook’s horizon, most notably Apple’s targeting clampdown, which Facebook has been fighting
  • Microsoft (Tuesday); Revenue: $40.228 billion +9%; EPS: $1.64 +8.6%; Last year Microsoft reported quarterly revenue growth of 12%-15%, driven by Office productivity apps and the Azure business. The pace decelerated slightly through the year. However, IT spending will be strong and can help Microsoft report stronger-than-expected numbers

📰 What’s going on

Apple’s first VR/AR headset will be a high-price product aimed at a select market; the company does not anticipate it will sell many units but will instead position it as a product intended to prepare developers and consumers for more mainstream devices in the future; Apple is set to launch the headset next year, with a primary focus on VR features; the company is also developing an AR-only device, but it’s not expected for several years

👩🏾‍💻 Good reads

Mobile stats: The state of mobile 2021 by AppAnnie, and 2020 mobile data by SensorTower. Globally, consumer spending on the App Store reached $72.3 billion, up 30.3% YoY. As in previous years, this exceeded the amount users spent on Google Play, which grew 30% YoY. The App Store generated 87.3% more in consumer spending than the Play store

  • If you’re competing with an existing marketplace, look for an activity that your suppliers are currently doing today that you can do better to improve the customer experience.
  • All else equal, keep your commission low
  • Even prior to consolidation, marketplaces in creatively intense categories will be more defensible and profitable

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Angel Jaime

Angel Jaime

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Full-time learner, product stuff, “triathlete” & global traveller. CPO @ Yayzy, frmr Product Leader @ Revolut, @ Booking.com and @ Just Eat.