Private Markets, Angel and Secondary Investing, Sacra

Sacra

Private Markets, Angel and Secondary Investing

Bringing transparency to private markets so investors, founders, and employees can build on conviction. Sacra delivers deeply researched insights on the private companies shaping tomorrow's markets. By surfacing the data, context, and operator perspective that are missing from private markets today, we help secondary buyers and sellers price equity accurately and unlock liquidity for the people building these businesses.

Private Capital Markets

<ul><li>Sacra estimates Xiaohongshu generated $4.8B in revenue in 2024, up 30% from $3.7B in 2023, with 300M monthly active users and a $20B valuation.</li><li>The little-known Chinese social media app Xiaohongshu, backed by both domestic companies (Alibaba, Tencent) and international venture firms (DST Global, GGV Capital) shot to #1 in the iOS App Store in the week leading up to the TikTok ban as 3M American “TikTok refugees” flocked to it as a replacement.</li><li>We dug deeper into the Chinese-incorporated Xiaohongshu—aka RedNote—to learn more in advance of an anticipated 2025 IPO on the Hong Kong Stock Exchange (HKEX).</li></ul>

Sacra estimates Xiaohongshu generated $4.8B in revenue in 2024, up 30% from $3.7B in 2023, with 300M monthly active users and a $20B valuation.The little-known Chinese social media app Xiaohongshu, backed by both domestic companies (Alibaba, Tencent) and international venture firms (DST Global, GGV Capital) shot to #1 in the iOS App Store in the week leading up to the TikTok ban as 3M American “TikTok refugees” flocked to it as a replacement.We dug deeper into the Chinese-incorporated Xiaohongshu—aka RedNote—to learn more in advance of an anticipated 2025 IPO on the Hong Kong Stock Exchange (HKEX).

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Reddit's recent earnings for Q3 2024 revealed that the company achieved a significant financial milestone by reaching GAAP profitability, underscoring its strategic progress.</li><li>On the positive side, Reddit reported an impressive 68% year-over-year revenue growth, amounting to $348.4 million for the quarter.</li><li>This increase was largely driven by a robust advertising segment, which itself grew by 56% year-over-year, reaching $315.1 million.</li></ul>

Reddit's recent earnings for Q3 2024 revealed that the company achieved a significant financial milestone by reaching GAAP profitability, underscoring its strategic progress.On the positive side, Reddit reported an impressive 68% year-over-year revenue growth, amounting to $348.4 million for the quarter.This increase was largely driven by a robust advertising segment, which itself grew by 56% year-over-year, reaching $315.1 million.

Reddit's Explosive Growth Surpassing X! What Exactly Is Fueling Its Success?

<ul>
<li>Reddit's second quarter 2024 earnings reflect a company in the midst of scaling its user base and revenue streams, with notable strides in technological advancements and international expansion.</li>
<li>The discourse during the call highlighted that Reddit, under the leadership of CEO Steve Huffman and COO Jen Wong, continues to push aggressively on growth, particularly through enhancements in user experience and advertising efficacy.</li>
<li>Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.</li>
</ul>


Reddit's second quarter 2024 earnings reflect a company in the midst of scaling its user base and revenue streams, with notable strides in technological advancements and international expansion.
The discourse during the call highlighted that Reddit, under the leadership of CEO Steve Huffman and COO Jen Wong, continues to push aggressively on growth, particularly through enhancements in user experience and advertising efficacy.
Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.


Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Equity Capital Markets

Webtoon Entertainment / Equity Capital Markets

<ul>
<li>Webtoon Entertainment, a South Korean global storytelling platform and the world's largest digital comics platform, filed for an IPO in the United States.</li>
<li>The company offers 15M shares at a price range between $18.00 and $21.00, implying a market cap of roughly $2.5B at the midpoint based on 129.3M outstanding shares.</li>
<li>I have a positive view of the upcoming Webtoon Entertainment IPO and I think risk/reward is more favorable for IPO investors given the company’s improving profitability and strong cash position.</li>
</ul>


Webtoon Entertainment, a South Korean global storytelling platform and the world's largest digital comics platform, filed for an IPO in the United States.
The company offers 15M shares at a price range between $18.00 and $21.00, implying a market cap of roughly $2.5B at the midpoint based on 129.3M outstanding shares.
I have a positive view of the upcoming Webtoon Entertainment IPO and I think risk/reward is more favorable for IPO investors given the company’s improving profitability and strong cash position.


Webtoon Entertainment IPO: Favorable Risk/Reward IPO Valuation and Limited Downside Potential

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/webtoon-entertainment-inc" target="_blank" data-smartkarma-citation="entities:43652:1" rel="noopener">Webtoon Entertainment (WBTN US)</a> is a global storytelling platform. Webtoon has launched a Nasdaq IPO to raise US$270-315 million at a US$18.00 to US$21.00 price range.</li>
<li>We previously discussed the IPO in <a href="https://www.smartkarma.com/insights/webtoon-entertainment-ipo-the-bull-case" target="_blank" data-smartkarma-citation="insights:146038" rel="noopener">Webtoon Entertainment IPO: The Bull Case</a> and <a href="https://www.smartkarma.com/insights/webtoon-entertainment-wbtn-us-ipo-the-bear-case" target="_blank" data-smartkarma-citation="insights:149092" rel="noopener">Webtoon Entertainment (WBTN US) IPO: The Bear Case</a>.</li>
<li>In this note, we outline our forecasts and valuation. Our valuation analysis suggests that Webtoon is attractively valued at the IPO price range.</li>
</ul>



Webtoon Entertainment (WBTN US) is a global storytelling platform. Webtoon has launched a Nasdaq IPO to raise US$270-315 million at a US$18.00 to US$21.00 price range.
We previously discussed the IPO in Webtoon Entertainment IPO: The Bull Case and Webtoon Entertainment (WBTN US) IPO: The Bear Case.
In this note, we outline our forecasts and valuation. Our valuation analysis suggests that Webtoon is attractively valued at the IPO price range.


Webtoon Entertainment (WBTN US) IPO: Valuation Insights

United States

Reddit, Inc. operates as an online discussion platform. The Company publicizes online items recommended by members and aggregates news stories submitted by users. Reddit serves customers worldwide.

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Reddit (RDDT US)

$4.8B/yr Instagram Of China

TL;DR: Originally a PDF shopping guide for Chinese tourists, Xiaohongshu has evolved into China's answer to Instagram, capturing an affluent...

Sacra

Reddit's Explosive Growth Surpassing X! What Exactly Is Fueling Its Success?

Reddit's recent earnings for Q3 2024 revealed that the company achieved a significant financial milestone by reaching GAAP profitability,...

Baptista Research

Reddit, Inc. - Objective Of The Report

Reddit's second quarter 2024 earnings reflect a company in the midst of scaling its user base and revenue streams, with notable strides in...

Baptista Research

Webtoon Entertainment IPO: Favorable Risk/Reward IPO Valuation and Limited Downside Potential

I see upside for Webtoon Entertainment shares and my implied equity value of ~$3.3B represents ~29% upside vs. expected IPO price range of $18 to...

Andrei Zakharov

Webtoon Entertainment (WBTN US) IPO: Valuation Insights

Webtoon has launched a Nasdaq IPO to raise US$270-315m at an US$18.00 to US$21.00 price range. Our valuation analysis suggests that Webtoon is...

Arun George

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