Today we are going into the land of convenience stores to break down Casey's General Stores. Casey's currently operates in 16 states in the Midwest and Southern US. As of this recording, they have close to a $10 billion market cap and are the number three player in their market.To break down Casey's, Matt Reustle is joined by Markus Hansen, portfolio manager and senior analyst at Vontobel Asset Management. We cover the industry of convenience stores, including the competition that exists in this market and the unique geographical considerations. We also discuss the financial model, drivers of gasoline performance versus in-store purchases, and margin profiles across the different segments of this business. This is another fascinating story hidden in plain sight. Please enjoy this breakdown of Casey's.For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.-----This episode is brought to you by Tegus, the modern research platform for leading investors. Stretch your research budget with flexible expert calls you can trust. At a fraction of the cost of traditional expert networks, Tegus customers pay only what an expert charges – with zero markups and no confusing call credits – netting an average 70% savings. Don’t want to conduct a full hour call? Tegus offers the ability to schedule 30-minutes, an offer you won’t find anywhere else. And they don’t stop there. With white-glove custom sourcing for every project and robust compliance measures, including a dedicated 50+ analyst team that vets every call transcript, Tegus ensures your privacy and protection. As the industry innovator for qualitative insights, Tegus helps you find the right experts you need at a quality and speed that can’t be matched. For a limited time, as a listener, you can trial Tegus for free by visiting tegus.co/patrick.-----Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss | @ReustleMatt | @domcookeShow Notes(00:02:42) - (First question) - The concept of Casey’s General Stores (00:06:04) - Casey’s competitors and the market share in different regions(00:10:52) - The main differences between Casey’s and a regular gas station  (00:14:09) - A brief history on Casey’s beginnings and its founder(00:17:25) - A breakdown of the business’ revenue(00:19:14) - Casey's growth despite the changing environment standards raising operational costs(00:23:52) - The business’ margin profile(00:26:53) - How Casey’s General competes with its peers and fuel pricing(00:29:33) - The focus for Casey’s with regards to expansion opportunities (00:33:06) - The hurdles involved with building new gas stations versus acquiring existing stores(00:35:08) - Casey’s stance on franchising(00:38:02) - The company’s attractiveness to buyers(00:40:52) - Casey’s General’s average stock performance(00:44:26) - Key risks of Casey’s(00:47:30) - The main lessons learned from Casey’s General StoresImportant Information:Information provided represents the views of a company of the Vontobel Group (“Vontobel”) and should not be considered investment advice and/or legal, tax, financial or other advice. Further, not a recommendation to purchase, hold or sell any investment and no representation is given that the securities discussed are suitable for any particular investor.Although Vontobel believes that the information provided in this document is based on reliable sources, it cannot assume responsibility for the quality, correctness, timeliness or completeness of the information contained in this document.

Eric Kress, a Principal at Gossamer Consulting Group, joins the podcast to break down Take-Two Interactive Software. They discuss the strategy behind new releases, the impact of mobile gaming, challenges of launching new intellectual property, advertising in console games, profit margins, and the acquisition potential of Zynga.

This is Zack Fuss, an investor at Irenic Capital, and today we’re breaking down Nubank. The Brazilian-based neobank has gone from nothing to extraordinary scale in a short period of time. 10 years after its founding, the company counts 46% of Brazil’s adult population as customers, is the largest Fintech in Latin America, and has a market capitalization of $37 billion. The fact that it’s achieved this in an environment that heavily favored the large incumbent banks makes its story all the more impressive.To break down the business, I am joined by Daniel Bakalarz, Managing Partner at Unison Asset Management. Dan has a long history with this business and it shows in our discussion. We discuss the confluence of factors that made this business possible, the economics of a typical Nubank customer, and the competitive dynamics of banking in South America. Please enjoy this business breakdown of Nubank.For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.-----This episode is brought to you by Tegus. Tegus is the modern research platform for leading investors, and provider of Canalyst. Tired of calculating fully-diluted shares outstanding? Access every publicly-reported datapoint and industry-specific KPI through their database of over 4,000 drivable global models hand-built by a team of sector-focused analysts, 35+ industry comp sheets, and Excel add-ins that let you use their industry-leading data in your own spreadsheets. Tegus’ models automatically update each quarter, including hard to calculate KPIs like stock-based compensation and organic growth rates, empowering investors to bypass the friction of sourcing, building and updating models. Make efficiency your competitive advantage and take back your time today. As a listener, you can trial Canalyst by Tegus for free by visiting tegus.co/patrick.-----Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss | @ReustleMatt | @domcookeShow Notes(00:02:44) - (First question) - A background on neobanks and how Nubank is unique(00:04:17) - The company’s origin story and how it moved up the value chain over time(00:09:43) - Nubank’s rise to a becoming a market leader in just a decade since its formation in 2013(00:17:04) - The backdrop in Brazil that led to the opportunity for Nubank to enter the market(00:23:34) - A breakdown of Nubank’s revenue(00:29:06) - The makeup of a mature Nubank customer and the company’s average revenue from that customer(00:33:33) - Reasons for the business pricing its annual percentage rates so aggressively (00:34:18) - The comparison between the business and traditional bank holding companies in the US and South America(00:43:40) - Potential opportunities for Nubank in the future(00:52:12) - The biggest risks to the company moving forward(00:57:30) - Brazilian regulator's opinion on Nubank’s rise in the market in context of its large established peers(00:59:54) - Lessons learned from studying the business(01:05:06) - Dan’s parting wisdom on Nubank and what he wants people to take away from this breakdown

This is Zack Fuss, an investor at Irenic Capital. Today, we're breaking down Argenx, an immunology company founded in 2008 by its three founding partners. Today, it's a $30 billion company set to produce over a billion dollars in sales. They're known for their skill in developing antibodies for complex disease targets and owe a large part of their medical breakthroughs to llamas, which have similar antibodies in their immune system to those found in humans. To break down Argenx, I'm joined by Julia Angeles, an investment manager at Baillie Gifford. Throughout this conversation, we'll discuss how Argenx navigates the complex world of drug development, clinical trials, regulatory approvals, and the ultimate commercialization of autoimmune therapies. We'll also learn more about their transition from a venture capital backed business to its 2017 IPO, and today, a meaningful revenue generating business. We hope you enjoy this business breakdown.Note: This conversation was recorded on 19 July 2023.For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. -----This episode is brought to you by Tegus, the modern research platform for leading investors. Stretch your research budget with flexible expert calls you can trust. At a fraction of the cost of traditional expert networks, Tegus customers pay only what an expert charges – with zero markups and no confusing call credits – netting an average 70% savings. Don’t want to conduct a full hour call? Tegus offers the ability to schedule 30-minutes, an offer you won’t find anywhere else. And they don’t stop there. With white-glove custom sourcing for every project and robust compliance measures, including a dedicated 50+ analyst team that vets every call transcript, Tegus ensures your privacy and protection. As the industry innovator for qualitative insights, Tegus helps you find the right experts you need at a quality and speed that can’t be matched. For a limited time, as a listener, you can trial Tegus for free by visiting tegus.co/patrick.-----Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss | @ReustleMatt | @domcookeShownotes(00:03:49) - (First question) - Ways the immune system protects us and fails us(00:06:00) - Current patient treatments and evolving solutions to existing problems (00:07:52) - The key difference between how the biotech community is addressing big diseases versus autoimmune disorders(00:09:55) - What sparked Julia’s interest in Argenx(00:14:01) - Explanation how we use animal antibodies to help research progression(00:15:25) - The foundations of the business(00:17:57) - The evolution of the business and its commercial success thus far(00:20:22) - Transitioning from lab antibodies to a commercial product ready for consumers(00:23:42) - The infrastructure needed to maintain and grow Argenx(00:26:43) - Indicators of commercial success(00:29:27) - The basic revenue model for this business type(00:30:49) - Go to market strategies for developed drugs (00:34:39) - Pricing and patient protection of these newly developed drugs (00:37:46) - Cures versus creating treatments with recurring revenue streams(00:39:38) - The importance of the current team composition (00:41:44) - Julia’s perspective on what they are willing to invest to grow the company(00:43:49) - Normalized profitability for biotech companies such as this(00:45:59) - Potential risks to the current business model(00:49:22) - Lessons learned from studying Argenx

This is Matt Reustle and today we are breaking down the vehicle auction giant, Copart. You may be unfamiliar with Copart but, at the time of this recording, the company has a $40 billion market cap. They operate in over 200 locations across the globe and they sell north of 3 million cars per year on behalf of their unique customer base.Copart is a unique story in a very concentrated industry where they likely have 50% market share. It's a story defined by evolution. Its founder, Willis Johnson, didn't merely adopt a junkyard mentality. He was born into it, molded by it. To break down Copart, I'm joined by Adam Mead, CEO and Chief Investment Officer of Mead Capital Management. We cover all the angles of this unique industry giant. Please enjoy this breakdown of Copart.Access Adam's Copart writeup for free here. Choose the October 2022 Copart issue and use the code "Breakdowns" for 100% off. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. -----This episode is brought to you by Tegus, the modern research platform for leading investors. Tired of running your own expert calls to get up to speed on a company? Tegus lets you ramp faster and find answers to critical questions more efficiently than any alternative method. The gold standard for research, the Tegus platform delivers unmatched access to timely, qualitative insights through the largest and most differentiated expert call transcript database. With over 60,000 transcripts spanning 22,000 public and private companies, investors can accelerate their fundamental research process by discovering highly-differentiated and reliable insights that can’t be found anywhere else in the market. As a listener, drive your next investment thesis forward with Tegus for free at tegus.co/patrick.-----Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss | @ReustleMatt | @domcookeShow Notes(00:02:32) - (First question) - An overview of Copart(00:04:16) - The size and scope of the market (00:04:52) - The process of a vehicle entering into Copart’s system (00:06:36) - The other side of the marketplace, who buys from Copart(00:08:16) - Selling cars whole or dismantling and how this has changed from the early days of the business(00:09:55) - An overview of Willis Johnson’s career, forming Copart and his involvement today (00:13:26) - The financial structure of the business in the early days(00:14:59) - Copart’s differences from the competition (00:18:42) - Biggest drivers of supply. Accidents, natural disasters, wear and tear  (00:22:12) - Cashflow flow through, the economics for Copart(00:24:08) - Associated costs with regards to the sale and movement of vehicles (00:26:12) - Average inventory numbers throughout the year(00:27:32) - The margin profile of the business on a normalized basis(00:29:29) - A breakdown of the CapEx budget on a yearly basis(00:33:42) - The major drivers of growth for Copart (00:37:16) - The buyback history, stated goal and philosophy on dividends(00:38:38) - Historical and potential future risks to the business  (00:42:00) - The insurance companies’ opinion of the business, net positive or net negative(00:43:37) - The framework investors use when valuing this business(00:47:17) - Lessons learned from the research and analysis of Copart 

This is Zack Fuss, an investor at Irenic Capital, and today we’re breaking down Lululemon Athletica. The Canadian company, founded by Chip Wilson in 1998, has grown from a pop-up store in a yoga class to a $45 billion apparel business. Along the way, it pioneered the trend of athleisure and forever changed what women and men wear to work out in.To break down the business, I am joined by John Zolidis, president and founder of Quo Vadis Capital. We explore the origins of Lululemon’s direct to consumer growth strategy, how it has remained relevant in an industry known for fleeting success, and how its business model compares to apparel giants like Nike. Please enjoy this business breakdown of Lululemon. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. -----This episode is brought to you by Tegus. Tegus is the modern research platform for leading investors, and provider of Canalyst. Tired of calculating fully-diluted shares outstanding? Access every publicly-reported datapoint and industry-specific KPI through their database of over 4,000 driveable global models handbuilt by a team of sector-focused analysts, 35+ industry comp sheets, and Excel add-ins that let you use their industry-leading data in your own spreadsheets. Tegus’ models automatically update each quarter, including hard to calculate KPIs like stock-based compensation and organic growth rates, empowering investors to bypass the friction of sourcing, building and updating models. Make efficiency your competitive advantage and take back your time today. As a listener, you can trial Canalyst by Tegus for free by visiting tegus.co/patrick.-----Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss | @ReustleMatt | @domcookeShow Notes(00:02:30) - (First question) - An overview of Lululemon(00:03:27) - Lululemon's success lies in branding, innovation, and community involvement(00:05:53) - Evaluating their growth story and investment potential(00:09:57) - Chip Wilson’s history and influence(00:16:53) - Management transitions, operational issues, and turnaround under new leadership(00:20:01) - Lululemon's success lies in its functional product and strong brand message(00:23:13) - Fending off competition through unique branding and customer engagement(00:26:31) - Lulu aims to grow men's business to complement women's dominance and reach(00:28:46) - China offers significant growth potential for Lululemon(00:32:35) - Focusing on vertical integration and limited wholesale channels(00:34:21) - Lulu's higher gross margins stem from product mix and DTC focus(00:37:08) - Increased capital expenditure is primarily allocated to store openings(00:40:18) - Mirror acquisition didn't meet expectations, unlikely to repeat such deals(00:42:30) - Significant risks for Lululemon's future(00:44:48) - Lessons learned from studying Lululemon

This is Zack Fuss, an investor at Irenic Capital, and today we’re breaking down the vertical market software business, Toast. Toast is a software platform built specifically for restaurants. Their operating system gives restauranteurs all the tools they need to serve customers, from taking orders to allocating shifts. It was founded in 2011 and went public a decade later. Today, it’s used by nearly 80,000 restaurants across the US.To breakdown Toast, I’m joined by Will Schreiber, the co-founder and CEO of Bottle – an ecommerce platform built for subscription businesses. We cover the different ways that Toast minimises the complexities of operating a restaurant, how their deep vertical focus has helped them outcompete Square, and how much room there is for potential growth. Please enjoy this breakdown of Toast.  For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. -----This episode is brought to you by Tegus, the modern research platform for leading investors. Stretch your research budget with flexible expert calls you can trust. At a fraction of the cost of traditional expert networks, Tegus customers pay only what an expert charges – with zero markups and no confusing call credits – netting an average 70% savings. Don’t want to conduct a full hour call? Tegus offers the ability to schedule 30-minutes, an offer you won’t find anywhere else. And they don’t stop there. With white-glove custom sourcing for every project and robust compliance measures, including a dedicated 50+ analyst team that vets every call transcript, Tegus ensures your privacy and protection. As the industry innovator for qualitative insights, Tegus helps you find the right experts you need at a quality and speed that can’t be matched. For a limited time, as a listener, you can trial Tegus for free by visiting tegus.co/patrick.-----Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss | @ReustleMatt | @domcookeShow Notes(00:01:42) - (First question) - An overview of Toast(00:04:16) - Toast's origins and pivot to Point-of-Sale (POS) solutions(00:07:35) - Convincing restaurants to switch from antiquated systems to modern POS solutions(00:09:48) - The complexity of restaurant operations requires efficient POS systems(00:13:04) - An overview of the POS revenue model(00:17:16) - Addressable market and limiting it intentionally with pricing (00:20:04) - How their tech expertise enabled them to build a hardware and software ecosystem(00:23:23) - The Toast network effect and their potential margin profile at full scale (00:26:19) - Their revenue mix impacts its margin profile, with transaction revenue dominating(00:27:37) - How they aim to dominate the restaurant industry with comprehensive services(00:29:59) - APIs enable integration, yet in-house features may risk partner relationships(00:33:45) - The key risks for Toast moving forward(00:38:40) - Why expanding beyond restaurants could challenge Toast(00:41:02) - Third-party integrations may erode Toast's point-of-sale dominance(00:44:36) - Lessons learned from studying Toast

This is Zack Fuss, an investor at Irenic Capital, and today we’re breaking down the biggest manufacturer of chip making equipment in the world, Applied Materials. Last week, we looked at the other leading equipment maker in the semi-industry, ASML, and while that business currently has a higher market cap, Applied Materials generated more revenue and profit last year.It earned $26 billion, spent $3 billion on R&D and currently has 17,300 patents. To explore the business behind those numbers, I’m joined by Dylan Patel, Chief Analyst at SemiAnalysis. Dylan takes us through the industry’s evolution, how Applied’s business differs to ASML, and how geopolitics is a double-edged sword. Please enjoy this breakdown of Applied Materials.For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. -----This episode is brought to you by Tegus, the modern research platform for leading investors. Tired of running your own expert calls to get up to speed on a company? Tegus lets you ramp faster and find answers to critical questions more efficiently than any alternative method. The gold standard for research, the Tegus platform delivers unmatched access to timely, qualitative insights through the largest and most differentiated expert call transcript database. With over 60,000 transcripts spanning 22,000 public and private companies, investors can accelerate their fundamental research process by discovering highly-differentiated and reliable insights that can’t be found anywhere else in the market. As a listener, drive your next investment thesis forward with Tegus for free at tegus.co/patrick.-----Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss | @ReustleMatt | @domcookeShow Notes(00:02:33) - (First question) - An overview of the vital and diverse semiconductor industry(00:05:11) - The shift to specialization in semiconductors(00:09:04) - Geopolitical factors that impact the sector(00:12:16) - The dynamic evolution of Applied Materials(00:15:22) - What differentiates Applied Materials from their competitors(00:18:52) - Strong margins, growth, and efficient capital allocation drive their financials (00:22:00) - The cyclical nature of the semiconductor industry(00:24:36) - Optimizing equipment for next-gen chips through collaboration with manufacturers(00:29:09) - How Applied Materials' specialization limits equipment changes for manufacturers(00:32:54) - Contributing factors to Applied Materials' continued growth(00:36:05) - Market share varies by equipment and processes(00:39:13) - Biggest risks for Applied(00:41:23) - AI's growing demand for semiconductors(00:43:20) - Lessons learned from studying Applied Materials

This is Matt Reustle and today we are back covering the semiconductor value chain. ASML was once a forgotten subsidiary of Philips. Today, it's one of the most important technology companies in the world. To break down ASML, I'm joined by Tom Walsh, a portfolio manager at Baillie Gifford. Tom helps explain what's happening inside an extreme ultraviolet lithography machine, and how ASML came to pioneer this technology from the Netherlands. It was a non-traditional path to say the least. This breakdown pairs very well with our breakdowns on AMD, Qualcomm and Cadence. And I'd also highlight the Founders Podcast episode #8 on the Intel Trinity. Please enjoy this breakdown of ASML.For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. -----This episode is brought to you by Tegus. Tegus is the modern research platform for leading investors, and provider of Canalyst. Tired of calculating fully-diluted shares outstanding? Access every publicly-reported datapoint and industry-specific KPI through their database of over 4,000 driveable global models handbuilt by a team of sector-focused analysts, 35+ industry comp sheets, and Excel add-ins that let you use their industry-leading data in your own spreadsheets. Tegus’ models automatically update each quarter, including hard to calculate KPIs like stock-based compensation and organic growth rates, empowering investors to bypass the friction of sourcing, building and updating models. Make efficiency your competitive advantage and take back your time today. As a listener, you can trial Canalyst by Tegus for free by visiting tegus.co/patrick.-----Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss | @ReustleMatt | @domcookeShow Notes(00:02:44) - (First question) - The ASML back story(00:06:14) - A deep dive into what semiconductors and Lithography are  (00:08:04) - Alternate business directions ASML could have pursued (00:19:39) - How large ASML is in the industry today(00:10:37) - A look into the management team over time(00:14:03) - Moore’s Law and the key components of chip production(00:15:09) - Overall size of the machines manufactured(00:16:14) - The evolution of UV light and its important role in the advancement of Lithography (00:20:29) - Other competing companies within the field (00:23:10) - A detailed look into the cost of production industry wide(00:24:04) - Unlocked innovations associated with the development technology (00:25:32) - The life cycle of a lithography machine(00:27:04) - Revenue gained from new versus refurbished machines(00:27:27) - The cyclicality of the ASML machine revenue(00:29:32) - Potential production limitations due to capacity(00:31:00) - Margin profile and how ASML sets prices(00:32:33) - What the concentration of customers looks like(00:37:00) - Reasons why an acquisition has not taken place to date(00:38:42) - He explains where investor cash flow is directed(00:40:01) - An investors perspective on ASML opportunities (00:42:24) - How milestones in new technology are regulated and measured(00:45:40) - Potential business risks(00:49:21) - Lessons he’s learned from studying ASML

This is Jesse Pujji and today we are breaking down Roku. With all the hype about social media and smartphones, it’s easy to forget that the average American still spends over 5 hours a day watching TV. And while the streaming wars get most headline attention, the battle for the user interface of smart TVs also has billions of dollars at stake. Here, Roku has emerged as an unlikely frontrunner, ahead of Samsung, Google, Amazon and other giants.To breakdown Roku, I am joined by Joe Frankenfield, Portfolio Manager at Saga Partners. We cover Roku’s history, dive into its income statement, unpack why it is the leading Smart TV platform in the US, and what the future holds for it. Please enjoy this breakdown of Roku.For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. -----This episode is brought to you by Tegus, the modern research platform for leading investors. Tired of running your own expert calls to get up to speed on a company? Tegus lets you ramp faster and find answers to critical questions more efficiently than any alternative method. The gold standard for research, the Tegus platform delivers unmatched access to timely, qualitative insights through the largest and most differentiated expert call transcript database. With over 60,000 transcripts spanning 22,000 public and private companies, investors can accelerate their fundamental research process by discovering highly-differentiated and reliable insights that can’t be found anywhere else in the market. As a listener, drive your next investment thesis forward with Tegus for free at tegus.co/patrick.-----Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss | @ReustleMatt | @domcookeShow notes(00:02:35) - (First question) - What is Roku: its scale and business model(00:04:37) - The history of Roku, major milestones, and the evolution of streaming(00:09:04) - The evolution of the content landscape after the inception of Roku’s device (00:10:59) - The steps Roku is taking to become the choice provider for consumers(00:14:10) - A breakdown of Roku’s revenue streams(00:18:04) - Advertising versus subscription models(00:18:37) - Mental models for determining the size and scope of the company (00:19:48) - How Roku acquires new customers, how marketing differs from old-school cable acquisition methods(00:21:20) - Reasons why Roku has won the majority market share(00:28:00) - Roku’s founder Anthony Wood’s importance to the business nowadays(00:29:04) - How Roku distributes its profits(00:31:14) - Roku’s acquisitions to date and the reason why the company has not yet been acquired by a bigger player(00:32:38) - Internal and external factors that could make or break Roku’s  growth expectations over the next 5 years(00:39:09) - The lessons that can be taken from the Roku story for platform builders and investors(00:41:37) - Learn more about Roku: Media in the Digital Age | We Now Disrupt this Broadcast | The Business of Media Distribution