The Best One Yet - ✨ “We’re ensconced in velvet” — Soho House’s urban club IPO. Zoom’s translation deal. Fathom’s 3D revolution.

Episode Date: July 19, 2021

If you like working under a chandelier, then Soho House’s IPO has a Takeaway for you at its members-only club in Mykonos. Zoom just acquired a translation startup because it’s facing a 4-front war with Google. And Fathom is SPACing its 3D printers because we’ve entered a new Industrial Revolution.$MCG $ZM $ATMRGot 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, July 19. On three, ice cream, you ate yesterday national ice cream day. Okay. Three, two, one. Maple and vanilla creamy.

Does the creamy count technically? I guess it's dairy. I want to know, do you call it a swirl or do you call it a twirl? All right, full disclosure, the appetizer was the Van Luen caramel. The entree was the salted, malted from Salt and Strong. Full disclosure, this is the best one yet. First story, Jack. What do we got?

Soho House stock just fell after its luxurious IPO last week. The urban country club wants to be ensconced in velvet. For our second story, Zoom just acquired a translation startup. Because Zoom doesn't want to get sucked by Google, but it's happening. For our third and final story, Fathom, is the first 3D printing company we've ever covered on this pod, then. Yeah, it is. The stock just went public because of the fourth industrial revolution. And yes, Creamies are delicious.

and count. I just started calling them the creamies. I used to call them soft, sir. I like it when I caved. It works. It still takes the hot fudge. Snackers, before we hit those three fantastic stories to kick off the week. Such a good mix to start the week, Jack. It is hoarder's almanac, week 70. Yeah, Jack and I have been keeping track week 70 things that we're running out of in the United States. This week, it's not running out of chicken wings or chlorine for pools. We're running out of money. Specifically, we're running out of money for female athletes, not getting paid enough. We got a snack fact from Maggie Mullen, who's currently an NBA student at the University of Oregon. This snack fact fact fact was honestly so good. I mean, Jack, we just had to promote this

thing to the intro. According to Maggie, in fact checked by us, the highest paid NBA player is Steph Curry. But get this. He makes more than 144 WNBA players combined. That's all 144. So why is pay for women so low relative to men after? So we jumped in snack style. It's basically because women's sports don't get the media love to justify the big sponsorship bucks. In 2019, 95% of all TV coverage of sports was on dudes hitting things. Basically. Now, it's not just the TV ratings, though, if you jump in further. Yes, the U.S. men's national soccer team. They hit things.

Makes more money than the U.S. women's national soccer team does. Even though the women's national soccer team snagged way higher TV ratings than the men. All right. There is some good news, though. Change is coming. Slowly but surely. Okay, last year, AT&T, Deloitte, Nike, they all threw out the big bucks to be the big sponsors of the WNBA. Last week, Candice Parker was revealed as gracing the cover of the NBA 2K-22 video game. And Jack, tomorrow we're getting the first MLB baseball game fully umpired by women. Nick, the Olympics opening ceremony is Friday.

Guess what there won't be a shortage of this Olympics. I'm picturing Simone Biles doing like 50 backflips, a whole lot of backflips. Maggie, epic snack. Let's hit our three stories. You're tuned in the snacks daily. The snacks about to hear ain't food. It's air candy. They don't reflect the views of the Robberhood family.

It's all informational just so you know. We're not recommending any securities. It's not a research report or investment advice. Not an offer or sale of a security. Snacks is digestible. Business news for you. Robahood Financial, LLC, member Fenra slash SIPC. For our first story, Soho House, it is a business news.

is the private club that just went public. There is safety in luxury. Jack, first of all, you could fit in there, right? You look great right now. You think so? I think you got the thing. Really? Well, it's home to 30 fancy houses.

That's what Soho houses. 30 houses. Pomade. Yes. Pomade. That's my secret. I like it. I see what you did that.

Now, houses, we're talking Soho House. You pay $3,400 a year to be a member. And you have access to their 30 Soho houses across the globe. I mean, Jack, I'm looking at the... features here on the site, they got bedrooms, they got co-working, they got a spa, they got restaurants, they got rooftop pools, add all this up, what does this sound like to you? This is your urban country club. It's an urban country club. They even have like an under 27 membership, which is very country club of that, you know? Very country club. But instead of a

badminton court, they have velvet everything. Well, what's that? That's just another one of our coffee table books. We have a million. Snackers, if there's a high end, high rent city, Soho House is probably there. London, New York, Berlin. Yeah, they got a beach club in me. Canoes, Jack, if you want to live the linen lifestyle. The dress code, though, it's not country club. No, it's not. It's no suit, Jack. You're going to go in, a member would wear like a torn shirt, but they paid extra to have that shirt torn in Paris. Snackers, Soho House from our experience, is popular with the kind of person who helps Haley Baldwin launch a CBD-infused leggings startup. Yeah, full disclosure, we've been to a couple of Soho houses, but we haven't bought the CBD

leggings. Snackers, the Soho House. is expensive. But membership collective group, the company that owns it and that just IPO, stock's only 12 bucks. So, Jack, we got ourselves a mobile stock. You may be missing out, but you can own it. So here's what Jack and I find fascinating about Soho House. It has the ultimate challenge of every luxury brand. Soho must remain exclusive and cool, but it also must scale and grow. Yeah, so maybe that's why it's never made a profit in. I don't know, Jack, 26 years of existence. They haven't figured out that ultimate challenge of luxury, Nick.

No, they haven't. Never made a profit in 26 years. Also, they only have 111,000 members and they got 59,000 people on the wait list. You'd think they should just add new members, 59,000 are willing to pay. But if you let all 59,000 in, Soho House might lose its cool factor. And they're trying to boost revenues while not crowding the clubs with a paid app that they just launched. We're like, seriously, Soho House, you're a house. You can't replicate the house experience in an app.

Yeah, we notice they mentioned the word digital, 170 times in their IPO paperwork, but they're not a tech company. Do less. Take it easy, Soho House. Now, they're trying to grow, but they're only opening five clubs a year to make sure they don't grow too fast. But all that real estate put $2 billion of debt on the company. Here's the worst part. They brought in $72 million in revenue in the first quarter.

But they lost $93 million that quarter. Their members are wealthy. Yeah. Soho clubs. So, Jack, what's the takeaway for our buddies with the Ripshirts over at the Soho House? They have found safety in luxury. Snackers, the most bullish thing about Soho House, resilience during the pandemic. In 2020, all of their clubs were closed.

Yeah, they were. People weren't traveling. Sitting at home. So they didn't need a fancy home away from home, whatever city they were in. But Jack and I noticed this wild stat about Soho House. Their 92% retention rate. That means 92 out of 100 members, remained members. even though they weren't getting value from Soho House.

Yeah, so like last year, WeWork users plummeted. Marriott's, they lost hotel guests. Almost every Soho House member continued paying $3,400 in the renewable fee. So the pandemic was like the ultimate test of loyalty and Soho House members. They stayed super loyal.

Mainly because they could afford to stay super loyal. Yeah, Soho House found safety in luxury. For our second story, Google is trying to eat Zoom. Kind of awkward. So Zoom just acquired a language translation startup. I love the way you said that, Jack, because it's like, I mean, of course, that's what you're going to do. Well, if your Zoom and your mission is making communications frictionless and secure. I mean, we don't work at Zoom, but we assume they have to recite that every day when they walk into Zoom headquarters.

Here's the thing. The only friction Zoom has eliminated when it comes to communication is physical distance. That's it. I mean, it's a big deal that they eliminated that. Yeah. Well, it's a huge deal. It let our economy like keep going despite the pandemic. Zoom stock quintupled from the pre-pandemic level to where it is today.

Not too shabby. But the stock is down 36% since October. Now, here's what's fascinating about Zoom. Distance isn't the only barrier to communicating. No, it's not. Body language can be a barrier to communication. Yeah. I mean, you can only see the head and shoulders of me and you on Zoom right now.

I know. People have the right. I've been working for months to try to eliminate my resting zoom face. I think it looks great, Jack. See, the key is you got to show the dimples. If you're hitting the dimples, that really helps, I feel like, with the RZF. I don't have dimples, but Wilder does. There's a dorm. Another barrier of those snackers is the language that you speak. Well, funny thing, Jack and I just noticed, Zoom is working on that one. Well, right now, before we get to the news, today, like yesterday, actually, you can get your Zoom call translated, but you must schedule

a live interpreter to be a participant on the Zoom call with you. That's right. You want to speak with your buddies down in Sao Paulo, Brazil. You got to get Paolo to do like the subtitles for this thing. Right. Zoom has a roster of language translators, but they're expensive. Yeah, they are. And there's a lot of friction in needing to schedule a time when the translator is available. Forgive me if I'm wrong, Jack. That seems at odds with everything we just said about Zoom's frictionless mission.

Right. Which leads us to the news of last week. Zoom just acquired a company called Kites. Like, let's go fly a kite. It's an artificial intelligence company based in German. We're talking machine translation slash learning. They teach a machine how to translate one word at a time. Okay, so Jack, let me see if I'm getting this right here.

For example, they would say dog and then the machine would be like, Hunt, in German, right. Or like cat, and then the machine would be like, kats. Katsa, yeah, in German. Or iceberg in English, which is actually iceberg in German. And then after they put enough words in there to fill up a whole dictionary,

they can listen, figure out what you're saying, and translate. There you go. Hey, Athens office. Finish the TPS report by 5 p.m. Friday. With Kites, eventually, that message won't get lost in translation. So you got live translation with either captions or dubbing

Jack, hugely valuable to corporate America and all the movies my parents watch. So what's the takeaway for our buddies over at Zoom? Do you watch foreign films? My parents exclusively watch stuff they can't speak the language in. Snackers, Google is actually attacking Zoom from four different flanks. Yeah, at the start of 2020, Google owned just 1.6% of the global video conference market. One year later, start of 2021, Google now has 22% of the video conferencing market, according to email tool tester.

Now, Zoom still owns twice of Google's market share, but Google's attacking Zoom on four freaky flanks. First is translation. Google Translate has dominated. It's been available for decades. And then you got bigness, Jack. Everyone's got a Gmail account, 2 billion of us, so you already have a Google meets account too. And then holograms. In June, on this pod, we covered that Google is working on holograms, which will be huge in a work from anywhere future because you'll feel like you're in the office. Help us, Obi-1. You're our only contractor. And finally, hardware. Google Glass is Google's augmented reality glass. They just added Google meets video conferencing, like a little screen right on the lens. Boom.

So a Zoom that translates actually isn't that innovative? It's way overdue. Because iceberg is iceberg in both languages. For our third and final story, Jack, 3D printing startup fathom. Great name is going public with a spack. The third industrial revolution is over. Great term. The fourth is beginning.

That is bold. It's like the beginning of Star Wars movie. By the way, Jack, number one meme of 2021. I know what you're thinking. GameStop. Too soon. Ships, the ship that was stuck in the Suez Canal. The traffic jam in the Suez Canal caused $400 billion per hour of goods to be delayed.

I mean, Jack, you ordered shoes. You got Nike shoes? Those Nike shoes were delayed at a port because of the Suez Canal ship. The Nike shoes were delayed three weeks. And Fathom is the opposite of that. In fact, Fathom doesn't have an S-1 document next. No, they don't. No IPO paperwork.

But they do have a website. Very nice. And what did you notice on the website? They mentioned the word fast 12 times. It's pretty aggressive. And the reason they do this is because they're a 3D printing company that specializes in prototypes and speed. They mentioned prototype 12 times too. I'm not kidding.

You kept that one from me. You kept that one from me. That's a good one too, Jack. Now, this company is literally in the heartland of America. Literally. Have you heard of Heartland, Wisconsin? Because that's where Fathom is based. Yes.

And Fathom is celebrating right now because they just got acquired by Altimer Acquisition Corp number two at evaluation of $1.4 billion, which makes Fathom become a publicly traded company. I hope they don't change the logo because you, I like this logo. You like this logo? It is so Midwest. It is a hammer. Yeah. A vice and a pencil.

Intense. All crossing each other, like a skull and crossbones kind of. A lot of tattoo potential. A lot of like work. shop-free. Now, the way this company works is they have machines that'll print your physical products using plastic and metal. It's a 3D printer. And they have 13 locations in the US that will 3D print for you and then truck it to you. And since they have 13 locations, it won't take that long to get to you. Right. These products aren't crossing the Pacific Ocean. They're like crossing

I-95, the interstate. And you might be asking, why 3D print something instead of, you know, use the old-school manufacturing? Well, we got to go back to the favorite word of fathom. speed. The CEO's value proposition, we allow our customers to accelerate innovation. Okay, so Jack, let's say we got this idea for like a cicada swatter. It's a once-in-a-decade situation. We got to get the cicadas water out there. I think it's once every like 14 years, actually. Yeah, we're on a new cicada cycle. So you design a fly swatter, but for huge cicadas, you're not sure it's big enough and strong enough to swat those huge bugs. So you send the specs of the swatter to Fathom, and then they print a plastic, very fast version of that up to the same day.

They can do it that quickly. That's how quick they'll have a prototype for you so that you can test out the Cicada Swatter before you decide to invest more in mass produce it. So their business is speeding up other physical businesses. Jack, what's the takeaway for our buddies over at Fathom? We have entered the fourth industrial revolution. Snackers, four levels here. The first industrial revolution, water and steam engines.

That was the 1700s and the 1800s. Jack, the second Industrial Revolution, assembly line manufacturing. Henry Ford, step on down. That was the early 1900s. Jack, the third Industrial Revolution computers and supercomputers. A bunch of garages in Silicon Valley, that was the late half of the 1900s. But Jack, can you whip up the new fourth Industrial Revolution for us that's happening right today? Combining the physical offline with the digital online.

Snackers, Fathletters. Fathom's full official name, it's actually Fathom Digital Manufacturing Corporation. They're digitizing manufacturing. And that is the fourth industrial revolution today. Jack, can you whip up the takeaways for us to start the week? Soho has just went public. The stock fell a bit. Yeah, the best thing about Soho's business, luxury gets loyalty.

For our second story, Zoom just acquired a language translation startup. Yeah, distance isn't the only friction and Google is coming. For our third and final story. Fathoms 3D printers. Get your prototype of your new idea. Stat. Digitizing, manufacturing. That is the fourth industrial revolution.

Now, time for our snack fact of the day. This one sent in by Danny Figgler from Westchester, New York. Here, buddy, Timmy. Tom Cruise is working on a $200 million budget movie that is going to be filmed in space. Literally. Like, they're filming this thing at the International Space Station. No joke, Tommy Cruz.

Sorry, though, Tom. This isn't the first movie that will be made in space. Like, we know you're a snacker, but Apogee of Fear is an $8.2012, $30 million sci-fi-file film that was shown at South by Southwest and filmed in space. Of course it was shown at South by Southwest. Of course. Decent movie, unprecedented movie set. Snackers, we would love if you post on Instagram right now, your favorite part of today's box.

Share your snacks daily. Tell people H.Y. HY. H.S.D. and tag at Robin Hood Snacks. you know, you know. Nick and I'll see you tomorrow. And before we go, congratulations to Erica Combs and her husband who eloped to the lovely redwoods. We saw the pictures. This was epic last Sunday.

The trees are huge and so is the love you two have for one. You're a poet. That was amazing. Congrats on getting engaged to Michael Starkman and Olivia Rapeau in Ohio. And Jacqueline and Polly have a new baby named Dingo in San Diego. Chuck and Ebony have been snacking together and love. each other for two years in the great garden state of New Jersey. And Jack, Ariadne and Brian are a couple that snack together six thousand miles apart that just

got back together next to each other. I'll tell you, it's love season. And Raphael is in London. Her dad is in Austria and together they're snacking every day. It's like Forrest Gump and Jenny. They're apart, but they're looking at the same room. Exactly, Jack. Now, happy birthday to Beth Hockenbury over in Pittsburgh, by the way.

And Ron O'Fier in Westport, Connecticut. and Bo Arete in Grand Rapids, Michigan. And Isaac E. in Arlington, Virginia. And Ferris Mode in Winston-Salem. And Sarah Bourne in Raleigh, North Carolina. And Chittadoo Zodie in South Milwaukee. And Shana Pee in McKinney, Texas. And happy birthday, Caspian Luke from Portola Valley, California.

And to anyone else celebrating something today, make it a teaval. Celebrate the wins. 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. I don't think you're going to be happy with my ice cream. I know what you're going to say. I don't think you do.

I do, I do. It's a dairy-free issue. It's a dairy free, isn't it? Dude, I need to keep my Vermont credentials up.