The Best One Yet - 🍹 “Pandemic Pool Party” — Tesla’s big problem. PoolCorp’s pool stock. UiPath’s mindlessness IPO.

Episode Date: April 26, 2021

Wall Street’s having a pandemic pool party and PoolCorp’s stock is hosting. Tesla reports earnings today, but we think the real situation is some awkwardness over in China. And UiPath is the biggest IPO you’ve never heard of with 1 focus: Killing the mindlessness, destroying the boring.$PATH $TSLA $POOL $SWIMGot 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. Welcome back. It is Monday, April 26th. Welcome back. We are in the meaty part of the curve of this spring season. Jack, I got to ask you.

Did you get your skin cream coffee this weekend? I thought you were going to ask me about the bassinet. Yes, the coffee I had this morning was baked in college. You get the latte art? Let me rub it on the cheeks. This is our best podcast yet. For our first story, Tesla reports their quarterly earnings today. But it just had the worst week in a couple of years.

When you let a fire burn, you could get burned. For our second story, it smells like May already. Mom, can we finally open up the pool? Jack, Wall Street, jumping into the pandemic pool party. Did they get an invite? One pool stock just hit a record high. Another pool company, just IPO. For our third and final story, UiPath, which just had the biggest IPO for a company you probably never heard of.

Here's the thing, their software bots, destroy the mindless, the boring, and the mundane TPS report tasks you hate. Peter, how you doing? Saturday. Yeah, thanks. But before we hit that honestly wonderful mix of stories today, Jack, there's been a leak. I report there has been a leak. Jack and I noticed from Facebook headquarters. Every week at Facebook, they have an all-hands meeting where every employee of the company

can zoom in and hear what the executives have to say. And here's the thing. The employees then can vote on what questions they want to ask Mark Zuckerberg. And last week, the most upvoted question for Mark was. this. What is our next big product which does not imitate already existing products? In other words, when will we stop copying? In other words, what are we going to stop zucking? Snackers, we think this is the first ever preventative zucking. That's right, Jack. When you see zucking, you say zucking. But before you see zucking, say don't zuck. No, Facebook employees, they're trying to

revert the next zucking from the inside. It's like a plot for minority report. Yeah, it is. You know what, Jack, we could like totally inception this thing. That's what we could do. Go inside Mark Zuckerberg's dream, inside Mark Zuckerberg's dream, and make him think he had an original idea. Leo, run with it. Make it a company. Whoever asked the question at the All-Hands meeting, we hope he or she is still in good

employment at Facebook. Facebookers, if you work there, blink twice if you're okay. You're tuned in the snacks daily. We spoke to the lawyers and we got to get something legal out the way. The snacks are about to hear rain food. It's air candy. They don't reflect the views of the robber. her family. It's all informational just so you know. We're not recommending any securities. Nope.

It's not a research report or investment advice. Not an offer or sale of a security. Right. Snacks is digestible. Business news for you. Robberhood Financial LLC. Member Fenra slash SIPC. For our first story, Tesla has won an Oscar, a Super Bowl, and a lifetime achievement award in 2020. In 2021, though, they just had their worst week in years. Okay, first of all, important context here, Tesla reporting earnings today, they're going for the Tom Brady special. Seventh straight profitable quarter. But six, which they already have, that got the stock from $88 to $880 in just one year of 2020. Jack, I feel dirty that I said the Tom Brady special. I do too. I'm not happy about that selection. It just kind of came out. I don't know. Now, the reason they're able to pull off six consecutive quarters of profits is because Tesla's been like letting some fires burn like repairs and repairs and support.

Ford. Let's look at a Tesla rival Ford Motor Company. There are 3,000 Ford dealerships in America where Ford owners can go when their brakes start making a funny noise that is concerning. Your fusion a little more funky than usual? Bring it in. Tesla, on the other hand, has just 173 stores and galleries in America. That's it. And they look more like Soho than Jiffeloo. They do. I mean, if you're calling it a gallery, it's a gallery. It's because Tesla has focused on maximizing sales, not on maintaining cars that are already sold. By the way, great date spot, Tesla Gallery, go for a test ride. It's in Chelsea, right? Manhattan.

It's in Chelsea. Now, Snackers, wild thing Jack and I noticed over the weekend, Tesla's been letting that fire burn, but they just got burned by it. Tesla had their worst week of PR in years, and it all came from China. China, which is, honestly, China is critical for Tesla. That's the home of their second production factory. First one was in California. Second is in Shanghai. Third is going to be in Berlin.

Oh, and then we dug up this wild hero stat on Tesla. 21% of Tesla sales in 2020 came from China. That is nearly double what they did in 2019. And reports of that it's already at 30% in the present quarter that's going to be announced today. And it's all because in China, the government is hugely supportive of EVVs. Remember, what she wants, she gets. But the Shanghai Auto Show happened last week, and it got hijacked by an angry Tesla customer. Okay, this was insane.

Snackers, you can look up the video online. A woman at the Shanghai Auto Show jumped on a team. Tesla car and started yelling complaints that they never fixed her brakes. She has a new Tesla. She needed a repair and she had nobody to turn to to get it fixed and she wanted the world to know about. She was stomping on the car. This was like a Bravo show, Real Drivers of Shanghai kind of a thing.

Now, the PR didn't get worse because Tesla's team suggested maybe she's a paid protester, not a legitimately upset customer. Tough move. And in an authoritarian country, Tesla's good PR and good government relations, that's been its best asset. So they need to clean this up now. So, Jack, what's the takeaway for our buddies over Tesla reporting earnings today? It may be time to turn on the marketing spiggin.

That is a funny thing about Tesla. The other reason Tesla's so profitable right now, they spend $0 on advertising. We jumped into the annual report of Tesla, and they called their advertising cost immaterial. So small, they don't even need to talk about it. Meanwhile, if you're General Motors, you're dropping like millions every weekend on Sunday NFL games. Tesla, they got the word of mouth. straight from the devout Elon army. But the repair issues in China that came up last week,

they've started to become the narrative there as people catch on to it. All right, so here's what Jack and I are thinking. This could be a new moment for Tesla. Put some money for the very first time into advertising. Especially in China, where the brand is not as well known as in the United States, but China's a market that's just as important as the United States. Tesla defined the narrative before the narrative defines you.

For our second story, Jack, can you get off the Flamenco Pool Flow? for me over there. I prefer the avocado pool float, actually. Thank you very much. Pool Corp Snackers. It is a pure play pool stock. And Jack, now we know it's a pure play pool stock? How do we know? Take her simple pool, baby. There you go. The pandemic pool party is enjoying both short-term and long-term megatrends. Snackers, we're talking, of course, about pool corp based in lovely Covington, Louisiana, which happens to be in like an extremely fragmented pool industry these days. Yes, the pool industry is dominated by aunts and uncles who have local businesses, like Willie's Waters. If there isn't a pun or an alliteration in the name, like, what are you even doing?

But for the past 26 years, since it's 1995 IPO, Pool Corp has been on an acquisition tear, snatching up companies. They approached Willie's Water. They approached Perfect Ponds, and they said, hey, we're going to buy you out, go retire, head the floor to sit by a pool. We'll take care of the rest from there. That's why today, Pool Corp has 300 sales locations that can do installation, retail, can do it all. Yeah, I can't. And as you'd expect, there's not quite as many sales locations in states where it's cold out. There's one in Wisconsin. Wave if you can see us from there? A lot more down in the south where it's hot. We're talking 56 in Florida, baby. But we have entered a new era for pools. Snackers, this is wild. The pandemic pool party. Jack and I noticed, the pool industry is facing a

unique combo of short-term and long-term megatrends. We checked out pool corpse sales historically. They grew about 10% per year from 2015 to 2019. Very consistent. Pandemic quarter, here's the question like every single baby boomer was asking. Do we need this extra car spot for the driveway? Or should we maybe put a pool in there? Honey, do we really want the tomato garden? Or are we going to enjoy this hot tub? So 2020 was a jackknife for sales.

They rose by 23% for pool corp. I like what you did there, Jack. But 2021, get out of the way. If you want to get wet, you're getting wet. It was a cannonball. in the first quarter, sales jumped by 57% pool corp said last week. The reason behind these wonderful numbers here, Jack, the first, a short-term megatrend that happens to align with the pool industry right now.

This has been happening for a few years now, but people have been migrating from expensive northeastern towns to the more pool-friendly and more affordable southern towns. Florida's like 96% pools. But then second, you got the long-term megatrend alignment with the whole pool industry, too. Climate change. It's a no-brainer. It could make states in the north, like Wisconsin, have just as many pools as down in Florida. If so facto, pool corp stock, it's up a whopping 10% in just the last week.

And it's also at a record high. Meanwhile, you have Latham pools, which just jumped into the party. Ticker simple swim. They IPOed Friday. The stock's up 31%. So, Jack, what's the takeaway for our buddies over at Pool Corp? This company is 58% recession proof. Snackers, behold, the power of R squared recurrent.

Revenues. Geez, regression 101 here. What if Snackers, we get another economic downturn? That's what investors of Pool Corp are thinking. Are you going to add a pool to the backyard and like a 12 pack of foam noodles? Those are non-essential spends. Probably should buy real noodles. If we get a recession, which we eventually will, it's just a question of when.

You can count on the business for Pool Corp slowing down, but only 42% of it will slow down. Okay. And here's why we're saying, but only 42%. Because 42% of pool corp sales depend on a splurge. Installing new pools or refurbishing your old one. And if you've just lost your job, you're not splurging 20 or 50 grand on that. Okay. But the other 58% of pool corp sales, that is recurrent revenues.

Maintenance, repair, and retail sales for a pool that you already have in your backyard. So even if the economy is bad, you're probably going to spend to make sure the pool doesn't turn into an algae pond. That 58% is the power of recurring revenues for pool corp. And it's the recession-proof part of PooleCorp. For our third and final story, UiPath just delivered, get this, the third biggest software IPO in history, and you've probably never heard of them. Here's the goal of this Romanian company. Yeah, it is kill mindlessness, destroy the boring.

Again, third biggest software IPO in history. Worth $35 billion, Jack, can you give me a lift calculation on this thing? That is two lifts, and the stock creeped up by 8%. It's first week on publicly traded markets. The lift check in aisle 6. Now, Jack, this is why I love what we do, because it's a software company, and you'll see how this connects. We want to focus on the fact that its mascot looks like a Furby. Tell it Tubby's cousin made a cameo on their website.

It's an adorable velvet robot mascot. Honestly, I want to hug this thing like a beanie baby, Jack. Now, it's cute for a reason. It's cute because the company doesn't want to scare you about what it does. Here's why you may get a little scared. We checked their S-1, did the old Control F. They mentioned humans 23 times. They mentioned robots 117 times.

UiPath's mission statement is we make software robots so people don't have to be robots. And this is why this can get a little scary. UiPath calls all this RPA robotic process automation, which is an awful way of explaining what they really do, which we like to call Jack. Mindlessness extermination. Mindlessness extermination. The kind of things that you know, you do on Friday at 4 p.m. because it was assigned on Monday, but you waited until Thursday, and you end up doing it before you go home,

and then you hate everything. And then you have to do it next week, same time. Bob, move all the fires from one server, server E to server G. Please do it again next week. These TPS reports aren't going to shift themselves to the cloud. We've all had that task we hate. Label every line on the spreadsheet with the day of the week that the item happened. It's like, really?

Well, UiPath is like, no. We have a bot that can replace what you're doing, Bob, free up to do a little more. Turns out 73% of corporate executives are interested in killing these mindless mundane tasks that their white-collar workforce has to do every day. Now, because mindlessness stuff is awful, UiPath's revenue has jumped a whopping 81% in the last year to $607 million. Back to the scary point. Please, Jack. Will UiPass service kill jobs of humans too? Fair question.

Maybe. It's not clear if like you need Bob when you have a bot. So Jack, what's the takeaway for our buddies? Over it, UiPath killing mindlessness. UiPath has mastered the art of landing and expanding. Okay, Snackers, this is wild. UiPath, it doesn't sell a suite of like 100 cure-all automated services to give every worker, a little digital robot to do every single thing.

They start with one service, a simple baby bot to do Myra's expense reports so she could focus on other tasks that require a bigger part of her brain. I mean, yeah, Myra was in Phoenix for the conference. She doesn't want to be spending all day dealing with that stuff after the conference. conference in Phoenix. Now, that's the landing part of the customer acquisition. The customer sees value on one small thing, but they see it quickly and fast. And then here comes the expanding part. After the customer quickly sees that value, then they ask for a second, a third, a fourth, a fifth bot to do even more. And the result, customers of UiPath, they spend 45% more on

average in the second year than in the first year. Let that sink in. UiPath customers spend in 45% more in the second year than in the first year. They got a taste. They liked it. They wanted more. Oh, I know what you're thinking, Jack. Sounds like the Olive Garden slogan, too. My name's Jack. I'll be hosting you tonight. Can I interest you in a taste of the Merlot? The free sample, foot in the door, you talk to them about how their days going, what they're doing up in Burlington. You're selling them a bottle just a couple minutes later. That's basically how we designed the introduction to this podcast. UiPath Snackers, its value is killing the mindlessness, destroying the boring, muting the mundane. But its business strategy is in landing and expanding.

Jack, can you whip up the takeaways for us to start the week, please. Tesla just had one of their worst weeks in years. Going for its seventh straight profit today, but it should turn on the marketing spiket already. Especially in China. Please. Pool Corp stock. It's leading the pandemic pool party. Snackers, look for how much of the company is recession-proof. By the way, Jack, greatest fear of anyone over the age of 50, algae pool.

Greatest fear for anybody under the age of five? A frog. For our third and final story, UiPath is a $35 billion freshly IP-ed, software company murdering the mundane. And it's mastered the art of land and expand. Now, Snackers, time for our snack fact of the day. This one sent in by Jake, who seems hungry down in Miami. Human beings have been eating kale since 600 BC. It's not just a popular name for millennial babies. But maybe you think you enjoy kale. Guess what? Over in Scotland, kale has become such an important food over those hundreds of years. Some Scottish dialects use the term kale to refer to food in general.

Got to use the phrase like, come on to kale. Just as an invitation to generally come and eat food with me. Or Jack, this one's kind of dark, but off one's kale implies someone is feeling kind of sick. Snackers, you look fantastic today. If you haven't yet, click the follow on Spotify and on Apple and ask your friends, HY, HYSD. Have you had your snacks daily? If you know, you know.

And before we go, happy birthday to Ozzie the Dog turning five over in Dubai. And Dan Herrera, congrats on the new job working with a governor of Colorado. It feels like Dan, favor here, official podcast of Colorado? Dan, if you want to put our podcast on Colorado Public Radio for us, wink, wink, we'd love that. We're not going to say no. Happy birthday to Ben Palmer in Logan, Utah. And Allison Bacon in San Diego.

And Jake Dwyer, 10th anniversary of his 30th birthday over in Nantucket. Fantastic. And happy birthday, Sonia Marginine in Austin, Texas. And Doug Zatterer over in Great Neck Long Island. And Christy in Sunnyvale, California. And happy birthday, David Cooch in Atlanta. And Noah Capeski. in Houston, Texas.

And, yeah, get this, Las Parraza, just became a doctor over in Vegas. Michael Ramirez is starting a computer science program in Denver, Colorado. And Matt Tamayo starting a new job at Whole Foods in Austin, which I think is like the home of Whole Foods. That's the original HQ of Whole Foods. Yeah.

And finally, Jordan Bishop recommended snacks to dozens of people in Brooklyn, aka Kings County. Jordan, if you know, you know. The Robin Hood Snacks podcast you just heard reflects the opinions of only the hosts who are associated persons of Robin Hood Financial LLC and does not reflect the views of Robin Hood Markets, Inc, or any of its subsidiaries or affiliates. The podcast is for informational purposes only and is not intended to serve as a recommendation

to buy or sell any security and is not an offer or sale of a security. The podcast is also not a research report and is not intended to serve as the basis of any investment decision. Robin Hood Financial LLC, member FINRA, SIPC.