munsing 🏴‍☠️🎮🛑

[munsing 🏴‍☠️🎮🛑 @munsing]

“Game Stopped? Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide”

February 17, 2021

https://t.co/ET3JvuRjfX

[munsing 🏴‍☠️🎮🛑 @munsing]

@ThatARCGuy Anyone who shoots you in the back.

[Larry Cheng @larryvc]

The Ugly Teenage Phase of Profitable Growth

This is a phase that companies that were once high-growth, high-burn companies (that are typically transactional) go through as they try to get profitable.

Phase 1: You start with high revenue growth, high burn rate. Then you realize due to market conditions that you need to get profitable.

Phase 2: You drive for operating leverage:
- You cut operating expenses - inefficient marketing spend, headcount, etc.
-All out focus on enhancing gross margins - pricing, COGs, shipping, etc.

Phase 3: You focus on improving working capital dynamics.
-renegotiate with vendors, suppliers, manufacturers, etc. to enhance payment terms to improve cash.

Phase 4: You clean up the balance sheet
- Optimize inventory, renegotiate/refinance debt, try and solidify cash, etc.

During these four phases, revenue is declining YoY (sometimes materially) because you're comping against prior quarters with heavy marketing spend. This is why this is the "ugly teenage phase" - it looks ugly if all you're looking at is the top-line. But, there are usually good signs:

-marketing and sales efficiency is improving
-all opex lines are decreasing as a % of revenue
-EBITDA and/or OCF is growing

Phase 5: Revenue is declining YoY, but you have achieved profitability (EBITDA and/or FCF).

At this phase, you are still ugly to the world because revenue is declining, but the end of the teenage years is on the horizon.

Phase 6: Maintaining profitability and returning to YoY revenue growth by investing some of your own cash flow back into growth.

This happens typically in 4 steps:
-step 1: sequential Q/Q gross margin growth
-step 2: sequential Q/Q revenue growth
-step 3: YoY gross margin growth
-step 4: YoY revenue growth

The revenue growth comes from first from delivering real customer value and then:
-efficient marketing spend
-introducing new products
-expanding new channels
-reactivating churned customers
-pricing
-defending the base of loyal customers

The challenging part of this journey is the ugly period can last a long time. From Phase 1-5, you don't get much of any credit. It's not until you hit Phase 6 that outsiders will believe in the company again. But, those close to the company can watch as each phase is cleared and know that the company is going in the right direction. However, to be fair, until you get to Phase 6, you haven't reached the ultimate end goal.

**For the sake of clarity, this is a general observation across several different companies in different contexts many of which I'm not involved with. This is not an observation or prediction related to any specific company.

[munsing 🏴‍☠️🎮🛑 @munsing]

@DarkJoker333 @ThatARCGuy I want to play friendly with friends in squads but that’s impossible. I let my Speranzan stay gone after the 2nd expedition. Really sucks cause we’d be on it nightly. I moved on to No Man’s Sky in the mean time. And Hell Divers 2. But Arc is what I want to play. It’s a shame.

[munsing 🏴‍☠️🎮🛑 @munsing]

@iamrpk

[GameStop @gamestop]

GameStop reports highest quarterly net income in company history of $389.6 million. Highest first quarter operating income in GameStop’s history of $143.3 million. Net sales grew 14% year-over-year, driven by collectibles. Cash, marketable securities, digital assets and related receivables, and collateral pledged for derivative asset of $9.7 billion.

https://t.co/BAu3T6V9w4

[Larry Cheng @larryvc]

$GME

[Ryan Cohen @ryancohen]

https://t.co/kVPvOobXU2

[munsing 🏴‍☠️🎮🛑 @munsing]

@ValueAddedRS @Nfinit3Music

[Liz Morton ~ Value Added Resource @ValueAddedRS]

📢 The eBay community forum is migrating to a new platform June 11, 2026.

Move will erase decades of user posts, burying history of long-standing customer service & performance issues at $EBAY as pre-2023 content is set to be dumped down the memory hole.🚩

[munsing 🏴‍☠️🎮🛑 @munsing]

@FantasmaOnPc @ThatARCGuy Meh I’ll come back if there’s ever different playing modes. Or factions or an honor system.

[munsing 🏴‍☠️🎮🛑 @munsing]

@EmbarkBulletin That’s what I used with a silencer 3

[munsing 🏴‍☠️🎮🛑 @munsing]

@ThatARCGuy No they just wait for the PvE players to do all the work and just shoot them in the back.

[domoshi @heydomoshi]

JUST DO IT.

$GME

[munsing 🏴‍☠️🎮🛑 @munsing]

@ArcRaidersIntel Not a game to chill with friends just team death match. I guess if that’s your thing.

[munsing 🏴‍☠️🎮🛑 @munsing]

@ArcRaidersIntel Say no to a game that is a grind that turns into grief simulator. Needs PvE mode, honor system, or PvP factions.

[munsing 🏴‍☠️🎮🛑 @munsing]

@LancesEmporium Know and love? The new modes are sounding more fun than the current.

[munsing 🏴‍☠️🎮🛑 @munsing]

@just_trolling2 @EmbarkBulletin Same or at the very least, an Speranzan honor system or factions.

[munsing 🏴‍☠️🎮🛑 @munsing]

@EmbarkBulletin PvE Mode

[Roaring Sensei @RoaringSensei]

Well. Looks like I'm going to be working at @GameStop. More details soon.

[munsing 🏴‍☠️🎮🛑 @munsing]

@babau423 @AiMuscleMedia @ArcRaiderAlerts The PvP is pointless. Needs factions or an honor system.