The Best One Yet - 🏋️‍♀️ “Open gym relationship” — ClassPass-quisition. GitLab’s radical IPO. America’s super strike.

Episode Date: October 15, 2021

Ex-unicorn ClassPass was just acquired by MindBody because the future of working out could look like dining out. GitLab surged 35% on its IPO and it’s so radically transparent that they let the competition crash their meetings. And America is living through a Super Strike because you’re making more dough, but what’s the price of bread?$GTLB $DEGot a SnackFact? Tweet it @RobinhoodSnacks @JackKramer @NickOfNewYorkWant a shoutout on the pod? Fill out this form:https://forms.gle/KhUAo31xmkSdeynD9Got a SnackFact for the pod? We got a form for that too:https://docs.google.com/forms/d/e/1FAIpQLSe64VKtvMNDPGSncHDRF07W34cPMDO3N8Y4DpmNP_kweC58tw/viewformLearn more about your ad choices. Visit podcastchoices.com/adchoices Hosted on Acast. See acast.com/privacy for more information.

This is Nick. This is Jack. And this is Snacks Daily. It is Friday, the real Friday, October 15th. Today's pod is the best one yet. It's a TV-O-Y. Jack, how about the markets? How are we looking over there?

Best day since March. Yeah, one could say it was the best day for the stock market in a wild crocodile. Jack, there is a crocodile behind you. Jack hates crocodiles. For our first story. The gym is back, baby. And class pass just got acquired for a secret sum. Because the future of working out.

could look like dining out. That's what we're thinking. For our second story, we're in the middle of a super strike. And the latest workers to go on strike are from John Deere. Here's the think snackers. You're getting paid more dough, but what's the price of bread? That's a really good line. For our third and final story, GitLab, just IPOed and the stock jump 35%.

But GitLab is doing something unlike anything we've seen before. This is wild. GitLab is so radically transparent. Their competitors can join GitLab's CEOs, meetings. I heard their bathroom stalls have no doors. They're that transparent. That transparent. Is it alligators or is a crocodile? Let's go. Maybe it's crocs. Maybe it's out. Well, alligators are my issue. We're going to have to pause the pot. Actually, what do we go? Before we jump up. Snackers, do you remember the takeaway from yesterday's pod? Snackers,

do you even remember what you had for lunch yesterday? Do you often forget the name of the neighbor in your building who you've spoken to like eight different times? It's either Caroline or it's Joey. And you've seen her so many times. It's way too late. to ask for a reminder what her name is again? I know exactly what you're talking about, Jack. Well, Snacker's new research from the University of Geneva shows the best way to remember things. Here's the secret to remembering.

It is chocolate. Chocolate is the secret. Chocolate. You pair forgettable details with an unforgettable chocolate reward. Yeah, because your brain remembers the delicious cocoa. It's so facto. It'll also remember the boring stuff around the delicious cocoa. So Nick and I are thinking, if you're studying for a test,

Study with the Snickers bar as your wingman. Are you trying to pay close attention to impress your boss? Pay attention with a Kit Kat. To not forget, remember to indulge. So here's what we're thinking. For today's pot, if you want to remember the takeaways, this is what you got to do. Stick your face and some Hershey's kisses. If you got something big due on Monday, make yourself a chocolate Sunday.

We actually heard based on this logic, the umpalumpas? Yes. Have photographic memory. That chocolate river, that thing you'll never forget. Let's hit our three start. Oscar. You tuned in this next daily. to the lawyers and we got to get something legal out the way.

It snacks about the here ain't food. It's air candy. They don't reflect the views of the rob of her family. It's all informational just so. We're not recommending any securities. It's not a research report or investment advice. Not an offer or sale about security. Snacks is digestible.

Business news for you. Robberhood Financial, LLC, member FINRA slash SIPC. For our first story, it's leg day. Class Pass was once a billion. million dollar unicorn. And now we don't know. We don't know how much it's valued at because it got acquired for an unknown amount by a relatively unknown company. Yeah. We're talking, of course, about a class pass, a female founded startup that lets you basically have an open relationship with your gym. Here's how it goes down. You pay class pass a monthly subscription. Like a hundred

bucks a month. And then you get to choose from various classes going down at various gyms and studios near you. So if you're using like Tinder or Hinge to find Mr. or Mrs. Right. Class pass is helping you find Mr. or Mrs. right now for sweating. That's right. And the gyms in the studios, they put their extra spots that they couldn't fill on class pass last second. So it's kind of a win-win. The value proposition is all about optimizing here. You want to take like a 45-minute guns and roses, glute pounder with a local celebrity instructor. It's going to cost you eight credits on class pass.

Or instead, you could take a one-hour sleep yoga class for only four credits because it's basically an hour-long shavasana. I love when they say, you can use the studio for as long as you'd like until the other class arrives. So we don't have much data on class pass because they're private, but we do know that their revenues plummeted by 95% at the beginning of the pandemic. Which is why we were shocked to see that boom, after eight years and surviving the pandemic, class passes back by getting acquired. It got acquired by Mind Body. And it's funny, I've seen Mind Body described as a wellness platform, Nick. Wellness platform. What are they doing? Connect them like coconut water with the assaibals. No, it's software for booking appointments, basically.

Really, what this does is just make sure your appointment gets booked when you're booking your fitness class. Right. So when you click book on Class Pass for a James Bond themed spin class, mind body is the tech behind it that actually books you that 6am slot that you want it. I know that you did a James Bond theme class. I did. I did one yesterday. It was great. It was all like vaguely Bond themed music. Anything to get pecks like Daniel Craig. Now, here's the situation, Snackers. Both of these companies, they're still private.

So they're really merging together to become one bigger thing. And combined, they hope they have the strength to IPO soon. So, Jack, what's the takeaway for our buddies over at ClassPass? Could the future of gyms be like restaurants? Snackers, what does Class Pass really look like? It looks like the reservation apps, open table and resi, that you use to book your dinners. Right. You're not a member at any one restaurant.

So you reserve a table wherever. using OpenTable or Resi. And Jack, you're not a member of anyone gym, so you reserve a yoga mat wherever you can get the yoga. Mind body takes it one step further. They'll handle the payment. Unlike Open Table and Resi, they'll actually send money to the place you're going.

They handle the $30 payment to the yoga class. For restaurants, technology services became essential during the pandemic. Well, for this merger and hopeful IPO, it's a bet that the fitness industry is going to emerge from the pandemic more techified too. And it's also a bet that exercises don't want a monogamous relationship with just one gym.

No, you want an open relationship. You're going to treat your gym like you treat your bistros. For our second story, 10,000 John Deere tractor workers are on strike starting now. Actually, Wednesday at midnight. Why do strikes always start at midnight? No one's working anywhere. It's the worst during daylight savings. No one knows when the strike began.

They're striking because if bread costs more, you need more dough. We got a super strike situation, snackers. By the way, I mean, Jack, oh, dear. John Deere is the maker of the Harley Davidson of tractors based in Illinois. They've literally been making tractors since before the Industrial Revolution. We're talking 1837. 10,000 of their U.S. workers are crafting them as part of a organized labor union. And those 10,000 are negotiating as one right now because they want more pay and they want more benefits

if they're going to pump out more tractors. And they're not satisfied by the offer that John Deere has given them. So they're putting on some serious pressure to the company. And the John Deere workers just said this. We're striking for the ability to earn a decent living, retire with dignity, and establish fair work rules. Yeah. So the strike started Wednesday at midnight. And 14 of John Deere's plants and factories, they're empty right now.

Done. No one's in it. Executive said they're going to work day and night to try to solve the strike. Now, here's what Jack and I find fascinating about the strike situation. Snackers, you think Squid Game is popular? Striking is popular right now. We've never seen a super strike. like this before, from food companies to film crews to tractor makers.

If you're not striking, what do you even do it? I mean, hundreds of workers over at the Oreo maker Mondele's plant where they make all the cookies you love, they just got higher pay and bonuses and 401K contributions. But they only got all that after being on a six-week-long strike that ended in September. Over at Kellogg, 1400 cereal workers are tired of going home with just like free frosted flakes for the family. Yeah, they'd prefer overtime pay and benefits. So they're on strike right now too.

And then down in Hollywood, we just noticed that 60,000 crew members, they can't wait to make the next Fast and Furious 42 movie. They're really excited about it. But starting on Monday, there will be a strike of all Hollywood TV and film production unless that union's demands are met. Striking is bold. There's a huge risk yet could get replaced by non-union labor. My grandfather always used to worry about this.

Or by non-human labor these days. Good point. But workers feel emboldened because they're in high demand because we have a labor shortage in this economy. So, Jack, what's the takeaway for all our buddies who are super striking across the United States right now? Workers are getting paid more, but they're really getting paid less. Yeah, Snackers, we've got a bread versus dough situation. Get this. You're getting paid more dough, but what's the price of bread? Snackers, last Friday, the jobs report told us the average hourly pay for all Americans in September. Yeah, it's $30.85 an hour, which is technically 4.6% higher than you were paid last year at the same time.

Okay, but are we really getting paid more than last year at the same time? Well, yesterday, we learned that prices in this economy are 5.4% higher than they were last year. And that's the inflation that everyone keeps talking about. Okay, so our paychecks are 4.6% higher than last year. But the bill for all the stuff we have to buy is 5.4% higher than last year. What we're trying to say is he got 4.6% more dope, but the bread at the deli, it costs 5.4% more. People are getting paid more in this economy, but they're really getting paid less because of inflation. That's why there's a super strike.

For our third and final story, Jack is going to tell me where he found this one hour shavasana class. I actually did a two-hour one at the pad in San Francisco once. At that point, it's not even a class. It's a retreat. Yeah, it is a retreat. For our third story, though, GitLab. their stock just searched 35% on their IPO. But here's the thing, GitLab is doing something. We've never seen another company do like this.

All right, but first, what does GitLab do? Yeah, honestly, Jack, GitLab, GitLab doesn't even know what GitLab does. We watched like seven of their About Us videos, and here's what we got. They're a web-based DevOps lifecycle tool. So we'll translate that for you. It means they create software collaboratively, which still leaves a lot to the imagination. All right, let's try one more time here.

Ticketmaster, Fanatics, Goldman Sachs, build their, software to run their business using GitLab software. And when you got clients like Ticketmaster Fanatics and Goldman Sachs, your revenue doubles last year to $152 million, even though you're still not profitable. The stock jumped 35% on their IPO. Congratulations. And Joe Montana, Super Bowl champion. Notre Dame Fighting Irish is an early investor in GitLab. Yeah. So like double congratulations to Joe getting like a 400x return. There you go. I think that's a typo. It should say Joe Montan. But Snackers, here's what Jack and I find fascinating about GitLab. It's not about GitLab's business that we're focused on, about how GitLab runs its business.

Freakishly, radically transparent. Freakishly radical. It's like GitLab chugged a pint of Snape's truth serum over there. They're the first company to live stream the entire IPO day. This company doesn't ask for your social security number. They give you their social security number. All right. They're also one of the first companies that went fully remote.

Not in March of last year. In 2011, they went 100% remote. If you go on their website, they'll tell you where their employees are. They got one in Hawaii right now, and they got one working from, get this, Siberia, for like a decade. But neither of those are freakishly radically transparent. This part is they publish their entire strategy deck online for all to see. Get the Snackers. If you Google GitLab's handbook, you will find a 13,000 page report that they're constantly updating about everything their business is doing.

doing internally and forever. Want to know the marketing goals for Q3? It's published online. You want to know what their next big product is going to be? Boom, page eight of the handbook. They got it laid out for you. They even live stream like sensitive company meetings. If you are GitLab's competition, you can join into the all hands meeting and watch the

CEO talk to all the employees. GitLab is like your buddy who drank a little too much to the wedding and then had to give a speech and then said way too much about the groom. Now, the one issue here, all this radical transparency, it's actually. highlighted as a major cybersecurity risk. They're basically publishing all their passwords to like all their logins online. They're doing so much they may need to do a little bit less. So Jack, what's the takeaway for our buddies being radically transparent over at GitLab?

Transparency is a must have. It's not a nice to have anymore. Oh, Snackers. Jack and I jumped in deep snack style. Get this. The word transparency appeared zero times in Microsoft's IPO paperwork 35 years ago. Transparency, Transparent, or any other form of that word appeared zero times in Amazon's IPO paperwork 25 years ago. But 10 years ago, we started to see some changes. Facebook's IPO paperwork mentioned the word transparency five times 10 years ago. Uber mentioned it 25 times three years ago.

And just yesterday, GitLab's IPO paperwork said the word transparency a whopping 44 times. We think we know why. The public's trust and the benefit of the doubt they used to give tech, as he wrote. So today, transparency isn't just a cute, feel-good, nice-to-have thing. It is a must-have word. And GitLab literally built their whole business on that must-have radically. Jack, can you whip up the takeaways for us before the weekend? Class pass just got acquired by Mind-Body.

That tag team could make our relationship with gyms more like our relationship with restaurants. For our second story, 10,000 John Deere workers are on strike. You're getting paid more dough, but what's the price of bread? For our third and final story, GitLab, just I think. you owed, transparently. Yeah, because transparency is a tech must have. You got to have that feature. Really important feature.

This is Nick and my phone number is Jack. Time for our snack fact of the day. This one sent in by Russell Dup from Milwaukee and Jessica Casmercatch. We mentioned this week that Newcastle United is the only major sports team owned by a country, like a state. Well, we got another kind of related one here. The Green Bay Packers are the only nonprofit community-owned major. sports team in North America. That's right. It's a co-op, right? And that public ownership structure

was established in 1980. Yeah, in 2012, the Packers even raised $67 million selling purely symbolic stock, which they used to improve Lambo field, which needed some improvement. 250,000 shares were purchased by a bunch of Green Bay Packers fans to improve the team. Kind of like the original NFT. In other news, shares of the New York Jets just went through a reverse stock split. Snackers, you looked absolutely fantastic this week. By the way, it is Friday, so you've got to celebrate some wins this weekend. Jack, I know what you're celebrating. You've got a date night, and I know you're getting a very good meal out.

That's right. Do you have the menu up? I know you have the menu up. I know we're recording the pot and you have the menu up right now. You're scouting the menu. I've been stocking this menu, the entire podcast recording. What are the appetizers? The appetizers, I'm very interested in blistered shishito peppers,

which you barbecued for us last time you were here. It's in the season. Just a little bit of soy, a little bit of salt. That's all you need. And it's very much apple season. So the celery and apple salad's calling my name. Okay, we've got to end this pot because I'm getting hungry right now. Snackers, we'll see you Monday.

I can't believe you didn't ask you about the sausage. I didn't know they were serving sausage. And before we go, happy belated 246th birthday to the United States Navy, which has been paddling hard since 1775. Thanks to Joseph Doherty for the reminder on that one. And happy birthday to Perea over. in Bangkok, Thailand. And Brian in Stanford, Connecticut. And Air Force Vact,

Todd Taylor in lovely Los Angeles. Happy birthday, Nathan Forer in Bay City, Michigan. And Megan Rock, who's also a great boss in Boise, Idaho. HBD. to Terrence in Fremont, California. And Adriana, also in Los Angeles. And Steve Repetty in Cleveland, Ohio. And Moes Malik in Chicago

doing logistics. And Melissa Crop, happy birthday who just became a New Yorker. And Alex Jimenez and Giacenia O'Siguerra. Happy birthday to both of you, in Long Beach, California. And congrats to Loda Arsman, who can finally travel to see their family in Europe. And Perry, congrats on the new job over in New York City.

Congratulations to Jack Alden, who came out of the closet one year ago in New Hampshire. Happy National Coming Out Week. And congratulations to John Jung and Rissa for getting married in Salt Lake City, Utah. Robin Hood Snacks, Newsletters, and Podcasts reflect the opinions of only the authors who are associated persons of Robin Hood Financial LLC and do not reflect the views of Robin Hood, Markets, Inc. or any of its subsidiaries or affiliates. They are meant for informational purposes only and are not a recommendation to buy or sell any security, cryptocurrency, or investment strategy in any account. This is not an offer or sale of a security, not a research report,

and is not intended to serve on the basis for any investment decision. Any third-party information provided therein does not reflect the views of Robin Hood Markets, Inc., Robin Hood Financial, LLC, or any of their subsidiaries or affiliates. All investments involve risk, including loss of principal and past performance does not guarantee future results. Robin Hood Financial LLC, member FINRA, SIPC. I can't believe you didn't ask me about the sausage.