You also have a nice post, I would say that the legal risk of trademark infringement will likely not be a legal issue but as more attention goes to it redbubble will have to spend more to regulate the marketplace which will compress margins. Management may try to push these extra costs off as “investing for the future” if they have to spend that money. 1)I wouldn’t be able to tell if that’s true if they do start having to spend more and 2)it’s a recurring cost which won’t go away with scale
Hi Adu, first of all congrats on the post. I think you´ve synthesized very well Redbubble´s pros, cons and the challenges that lie ahead I´ve also been doing my research on the company over the last few months and my conclusion are quite similar. If I had to boil it down to one metric that would be REPEATABILITY. I think that´s going to be my driver of decision going forward which will depend on the execution capabilities of the management team. In any case, If you want to talk a little bit more in detail about the company or discuss all the news and the evolution going forward, I´d be happy to do it. Thanks, Patrick
Thanks for the comment, appreciate the feedback. I agree: Repeatability is a great way to summarize the issues at the company. I'm still trying to parse through the key metrics that would be leading indicators for management execution. It could be purchases per customer, the % of repeat customers, or just their GPAPA growth. As with any marketplace business, it can be difficult to parse out the right metrics to use. Slowing artist growth could be fine if the artists are quality. I would want to see the amount of goods sold by top artists vs the long tail of side hustlers and how much their partnerships contribute to the top line.
Hi Adu, thank you for your wonderful post. I recently wrote something on Redbubble myself (much less visually appealing): https://51win49loon.blogspot.com/2021/07/why-buy-redbubble-limiteds-stock-asx-rbl.html. Do you have any thoughts on the legal issues surrounding trademark infringing content uploaded on Redbubble?
Many thanks,
Martin
You also have a nice post, I would say that the legal risk of trademark infringement will likely not be a legal issue but as more attention goes to it redbubble will have to spend more to regulate the marketplace which will compress margins. Management may try to push these extra costs off as “investing for the future” if they have to spend that money. 1)I wouldn’t be able to tell if that’s true if they do start having to spend more and 2)it’s a recurring cost which won’t go away with scale
Hi Adu, first of all congrats on the post. I think you´ve synthesized very well Redbubble´s pros, cons and the challenges that lie ahead I´ve also been doing my research on the company over the last few months and my conclusion are quite similar. If I had to boil it down to one metric that would be REPEATABILITY. I think that´s going to be my driver of decision going forward which will depend on the execution capabilities of the management team. In any case, If you want to talk a little bit more in detail about the company or discuss all the news and the evolution going forward, I´d be happy to do it. Thanks, Patrick
Thanks for the comment, appreciate the feedback. I agree: Repeatability is a great way to summarize the issues at the company. I'm still trying to parse through the key metrics that would be leading indicators for management execution. It could be purchases per customer, the % of repeat customers, or just their GPAPA growth. As with any marketplace business, it can be difficult to parse out the right metrics to use. Slowing artist growth could be fine if the artists are quality. I would want to see the amount of goods sold by top artists vs the long tail of side hustlers and how much their partnerships contribute to the top line.