Investment Strategist, Transparently.AI

Mark Jolley

Investment Strategist

AI detection of accounting fraud and manipulation

Transparently.AI

Fraud and manipulation of their numbers see companies lose USD1 trillion+ per year for their stakeholders. Transparently.AI has developed an AI system that determines:

1. The likelihood that a company is committing fraud/serious manipulation of their books;
2. Whether it is serious enough to result in total corporate failure;
3. Estimated $ losses to stakeholders;
4. How that manipulation/fraud evolves through time; and
5. Detailed analytics on the forms of manipulation/fraud (e.g. which parts of the accounts, what tricks of the trade, questions for analysts to ask management, where/how to investigate further, etc.).

This is effectively automating the analysis of forensic accountants, activist short sellers, credit analysts, etc to do work that would typically take weeks per company, and instead run it in seconds and for thousands of companies simultaneously.

Critically, this solution frequently alerts users to the presence of serious manipulation risk up to 2-3 years in advance of the wider market and short sellers becoming aware of problems.

Forensic Accounting

<ul>
<li>The evolution of the metaverse gives rise to new business models that present new challenges for corporate reporting and accounting.</li>
<li>Transparently' s AI system has picked up some concerning signals about Roblox’s accounting quality.</li>
<li>However, some of these can be explained by the uniqueness of its metaverse-driven revenue model. </li>
</ul>


The evolution of the metaverse gives rise to new business models that present new challenges for corporate reporting and accounting.
Transparently' s AI system has picked up some concerning signals about Roblox’s accounting quality.
However, some of these can be explained by the uniqueness of its metaverse-driven revenue model. 


Roblox (RBLX) And the Accounting Challenges Posed by the Metaverse

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>Roblox's third-quarter earnings for 2024 showcased impressive financial and operational growth, significantly surpassing the company's forecasts from the previous quarter.</li><li>Revenue and bookings exhibited robust year-on-year increases of 29% and 34%, totaling $919 million and $1.129 billion, respectively.</li><li>These results exceeded the anticipated range of $860 million to $885 million for revenue and $1 billion to $1.025 billion for bookings.</li></ul>

Roblox's third-quarter earnings for 2024 showcased impressive financial and operational growth, significantly surpassing the company's forecasts from the previous quarter.Revenue and bookings exhibited robust year-on-year increases of 29% and 34%, totaling $919 million and $1.129 billion, respectively.These results exceeded the anticipated range of $860 million to $885 million for revenue and $1 billion to $1.025 billion for bookings.

Roblox Corporation: Leveraging Artificial Intelligence For A Competitive Edge! - Major Drivers

<ul><li>Roblox Corporation's second quarter 2024 earnings discussion presented an optimistic outlook underscored by impressive financial and usage metrics.</li><li>The quarter witnessed a 31% year-over-year increase in revenue, reaching $893.5 million, surpassing the guidance.</li><li>Bookings also grew by 22% to $955 million, while daily active users (DAUs) stood at 79.5 million, marking a 21% increase from the previous year.</li></ul>

Roblox Corporation's second quarter 2024 earnings discussion presented an optimistic outlook underscored by impressive financial and usage metrics.The quarter witnessed a 31% year-over-year increase in revenue, reaching $893.5 million, surpassing the guidance.Bookings also grew by 22% to $955 million, while daily active users (DAUs) stood at 79.5 million, marking a 21% increase from the previous year.

Roblox Corporation: A Tale Of Enhanced Content Discovery and Platform Engagement! - Major Drivers

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

Roblox Corporation provides entertainment products and services. The Company designs and develops a wide range of online games such as internet three-dimensional and tutorial games for kids, teens, and adults. Roblox serves customers worldwide.

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ROBLOX (RBLX US)

Roblox (RBLX) And the Accounting Challenges Posed by the Metaverse

The metaverse's evolution creates new business models with challenges for corporate reporting. Concerning signals about Roblox's accounting...

Mark Jolley

Roblox Corporation: Leveraging Artificial Intelligence For A Competitive Edge! - Major Drivers

Roblox's third-quarter earnings for 2024 showcased impressive financial and operational growth, significantly surpassing the company's forecasts...

Baptista Research

Roblox Corporation: A Tale Of Enhanced Content Discovery and Platform Engagement! - Major Drivers

Roblox Corporation's second quarter 2024 earnings discussion presented an optimistic outlook underscored by impressive financial and usage...

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

Price Gauge

52-week Range

Market Cap (USDm)

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Dividend (Yield)

Roblox (RBLX) And the Accounting Challenges Posed by the Metaverse

​The metaverse's evolution creates new business models with challenges for corporate reporting. Concerning signals about Roblox's accounting...

Mark Jolley

Roblox Corporation: Leveraging Artificial Intelligence For A Competitive Edge! - Major Drivers

Roblox's third-quarter earnings for 2024 showcased impressive financial and operational growth, significantly surpassing the company's forecasts...

Baptista Research

Roblox Corporation: A Tale Of Enhanced Content Discovery and Platform Engagement! - Major Drivers

Roblox Corporation's second quarter 2024 earnings discussion presented an optimistic outlook underscored by impressive financial and usage...

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

The metaverse's evolution creates new business models with challenges for corporate reporting. Concerning signals about Roblox's accounting...