March 6, 2018 | Webinar

The State Of The Ridesharing Unicorns

Rohit Kulkarni 00:15

Okay, we are going to go ahead and get started. Good morning, everyone, to everyone who's joining us from the West Coast. And good afternoon to anyone who is dialing in from the East Coast. On behalf of SharesPost, I would like to welcome you to today's webinar. I am Rohit Kulkarni, managing director of the Private Research Group here at SharesPost. And among other things, my group oversees website content, data research, insights, and a whole bunch of other things. Today's presentation should take approximately 25 minutes, and there will be a Q&A session to follow. If you have a question, please type it in the questions box which is located on the righthand side of your screen. You can also type questions throughout the presentation. I will happily scroll through them. I have my colleague here, Adam Pratt and Mark Brogger, who are the policers of this webinar.

Rohit 01:11

So before we jump into the main part of the webinar, for anyone's who's joining us for the first time, SharesPost is an eightyear- old FinTech startup with headquarters here in San Francisco financial district. At a very high level, our mission is to bring together shareholders and investors to create liquidity within the private tech growth asset class. These are just a sample of the issuers or companies that we have transacted in. And we launched SharesPost Research as a group about 18 months back. And since then, we have tried to stay on top of a lot of trends happening in the private tech ecosystem. We started off with Uber and ridesharing back in January, last year, and we circled back to Uber earlier this week as well. And doing Airbnb, Pinterest, Dropbox, Palantir, Spotify, Lyft are the other reports that we have published. All these reports, all these white papers are available for anyone who is a registered and accredited investor on the SharesPost platform. In case you want to log in, in case you want to access full reports - these are 20-, 30-, 40-, 50-page reports - feel free to do so after you log in.

Rohit 02:30

We do also conduct such webinars all the time. Some of them are hosted by the research group, and some of them, we find experts - people who we believe have extremely valuable insight about a specific theme, about a specific topic that our investors would find quite helpful. So again, if you are listening to this, and if you have strong opinions, and if you think you are an expert, feel free to reach out to me, and we'll figure out how to host a webinar. We also try to stay on top of recent blogs and market commentary. Taxes and the impact of taxes on the private market has been top of mind, particularly for a lot of employees at private companies. So we tackle that through a combination of things, including a webinar hosted with a partner tax forum, so on and so forth.

Rohit 03:30

So this is the agenda for today. We'll go through a series of reports that we have published over the last two months. In particular, I'll highlight three reports that we have published. We published a detailed survey report, which essentially highlighted all the takeaways from a recent survey we did of more than 6,000 consumers - US-based smartphone users. And that was the second year in a row, so I think we have a very interesting handle on the trends in ridesharing and how consumers are using as such. We published a deep-dive report on Lyft in December. We also published a report earlier this week on Uber. So that's the agenda. Feel free to type in questions, and here we go.

Rohit 04:21

The first kind of compelling thing is, we believe ridesharing has secular tailwinds behind the market. We did a survey of about 5,400 consumers in end of 2016, and then we did other survey of about 6,800 consumers in end of 2017, and we compared those sets of responses. We asked a series of questions: Have you used ridesharing? If so, which ridesharing application do you use? How do you use the ridesharing application? How frequently do you use it? How much do you pay? In which city do you live? And so on, and so forth. And also, we asked other questions like: What do you think about self-driving cars? What do you think about riding in a self-driving car which is operated by a ridesharing company? And so on, and so forth. So there is a ton of data that we have. It's hard to go through a 20-minute presentation for that entire set of data set. So again, I would highly encourage everyone to kind of look through our report and ask any follow-ups that you may have.

Rohit 05:33

The first thing that we have to share is now, we believe more than 50% of American adults have used ridesharing in the past 12 months. That's up from about 38% at the end of 2016. And if you go back even further, Pew Research did a survey in end of 2015, and they said about a quarter of Americans have used ridesharing in the past 12 months. So if you stack these three data points up, in the last 3 years, the secular penetration of ridesharing has jumped from 25 to 38 to 53 percent. So essentially, we have clear secular tailwinds that's helping how the ridesharing companies operating in this market are growing as well.

Rohit 06:24

As the market is growing, the market is consolidating as well, in our opinion. But there was one clear shift in market share that we thought was very interesting. Again, the headline in here is Lyft as a company increased its market share from about 10 percentage points during 2016 to about 18 percentage points at the end of 2017. On the other hand, Uber, we believe, has lost market share over that same time period. We have a stack of these pie charts proportionate to the growth of the market. So again, if you just compare the blue for Uber, it is growing, but the proportion of what it controls is slightly declining. Again, that doesn't come as a surprise to us. But again, that to us - looking at data from our survey - was a pretty compelling insight. Also, what I would say is, if the market in terms of number of consumers using ridesharing is growing about 30, 35, 40 percent, and then Lyft is increasing its market share by going from 10 to 18 percent. So probably, Lyft is clearly growing faster than the market.

Rohit 07:47

I'll get to how existing consumers are also spending more in a [inaudible]. So we have a proxy for growth rates, for oral ridesharing, as well as Lyft and Uber. And also, as in why are these companies growing? Again, they have essentially spread to every major US population center, and essentially Uber and Lyft probably have extremely [inaudible] kind of places where they currently operate. The green, and yellow, and red [inaudible] are essentially where our-- sort of where respondents indicated they currently reside. So they enter the zip code, and we can [inaudible] that using a couple of fancy kind of charting graphs. But the simple point is I think Uber and Lyft have a pretty comparable footprint right now. You see the classic smile of how US population kind of has spread across the US from West Coast to the Southwest to Southeast and all the way to the Northern corridor.

Rohit 08:53

So again, it does not come as a surprise there are a few places where Uber has a darker red than Lyft. Again, there are a few places where Lyft has a darker red than Uber. But again, the point here is, I believe, as in they are at almost every major US population center. But when we take a step back, if you look outside the US, Uber is the global leader in number of cities being served. They are approaching 700 cities across more than 30 countries. Lyft is actually only in the US. And if you add a few cities in Canada, which is where they expanded towards the end of 2017. Didi Chuxing is another company that's primarily operating only in China. So again, while it may seem that Uber is losing market share, there's also the other side of equation where Uber is still pretty dominant in a lot of markets outside of the US and China, as such.

Rohit 10:02

Not only more people are using ridesharing, the people who are using ridesharing are, in fact, spending more and riding more frequently. So again, as I said, we asked people, "How much do you spend per trip? How frequently do you use Uber or Lyft?" And we used data from the responses we received to come up with a certain kind of year-on-year growth rate assumption for the market and spend patterns. So what was surprising to us is all of the metrics are trending up to the right. People are using more-- people are using it more frequently for longer trips. And again, we expect that on average, a typical ridesharing consumer uses at least 40 to 45 times a year. So that's very high frequency of usage. When you look in other [inaudible] market places where people are buying goods on Amazon or even trying to transact various different things online.

Rohit 11:09

Also, we believe there is close to 40 to 50 percent uptick in year-on-year total spend, as such. We estimated about $450 was spent by ridesharing consumers during 2016. That's up to almost $600. So that's a 50% uptick in the total spend. And then, you add onto that a 40% uptick in the number of consumers currently using ridesharing. So the market or the sector is probably growing anywhere in the range of 80 to 100 percent year-on-year. So essentially, you are doubling the market on a year-on-year basis. And then, going back to my point about Lyft. Lyft is probably growing faster than the market, as in Lyft is clearly taking market share. If the market is growing 85 to 100 percent, Lyft is probably growing 100 to 150 percent just in the US.

Rohit 12:08

Why do we say that? Price competition is fairly high [inaudible] Uber and Lyft. As in, these companies have engaged in a price war at all levels, including driver subsidies, rider promotions. There is downward pricing pressure, but each seem to [inaudible], as in the commissions that these companies keep. And that is a fundamental kind of factor that weighs on the long-term profitability outlook for these companies. So here's what we did. In November, December, last year, we did this exercise of looking at kind of the 5 to 10 most popular routes in 20 different, most desirable ridesharing markets across the US. So for example, what if you want to go from San Francisco airport to the Golden Gate Bridge? What if you want to go from New York Penn Station to the Statue of Liberty parking lot, and so on and so forth? We just mapped all these routes, and we used various different times of day to come up with, what if you were to take Uber? And what if you were to take Lyft? Again, we tried to stay as comparable in terms of which product we use.

Rohit 13:32

For example, Uber and Lyft have different nomenclatures and different pricing variables. They have UberPool, Lyft Line, UberX, Lyft Basics, so on and so forth. But again, the point here is we observed very minimal difference between about 40% of the searches. So for 40% of the searches which are anchored, say between -$2 to +$2, we observe, "Okay, these companies are very, very competitive on price." But in other 40% if the searches, Lyft was better than Uber from a consumer standpoint. Which also means, Lyft is probably discounting the prices slightly more than what Uber seems to be doing today. So there's a winner's curse here, so we will probably be repeating this exercise on a quarterly basis and see where the pricing is trending - use that as a proxy. But again, over the longer term, you would keep a close eye on how price competition as such fairs to gauge where these companies are from kind of a profitability standpoint. And this is kind of an obvious byproduct, in our opinion. As in, given that more people are using ridesharing apps, given they are using ridesharing apps more frequently, and given that they are spending for a ride and spending more on a year-on-year basis, consumers are very satisfied with ridesharing apps.

Rohit 15:09

We have published reports on Dropbox, Uber, Airbnb, Lyft, Pinterest, and Spotify. We thought it was interesting. Again, these are different samples and different sample sets, but it is very, very interesting to us that generally, a lot of consumers are very satisfied with most of these leading consumer brands. Dropbox is currently on file to go public. Spotify is currently on file to go public. We'll see how these IPOs fair. We have heard a lot about those two as well. But again, when we started these companies up, it is not surprising to us that Uber satisfaction rates are slightly lower than Lyft. It is not surprising to us that Dropbox, on the face of things, offers online storage which has a lot of price competition on it. Consumers tend to be slightly less satisfied as compared to-- again, when you look at 75% NPS, net promoter score ratios, they are very high. But when you stack them up with other leading brands, it tends to skew one way or the other. But again, this is not surprising to us that people are very, very satisfied.

Rohit 16:30

Also, we cannot kind of escape the topic of ridesharing without talking about SoftBank. SoftBank invested a whole bunch of money in Uber - we'll get to that in a bit. But as we stack this up, these are kind of apples and oranges we are comparing here. As in, all the blue lines are essentially how much money each of these companies have raised, and this is just direct primary equity financing. So Uber includes only the billion dollars that SoftBank invested, not the $8 billion that they kind of invested through a secondary market as such. But the point here is, SoftBank now has direct equity investments in 4 of the 5 leading ridesharing companies in the world. And then, if you count Didi's investment in Lyft, SoftBank inevitably owns a little bit of Lyft as well. So essentially, SoftBank has kind of fingers in the ridesharing bucket throughout the world. So the question we keep getting from investors is, "Why is SoftBank doing this?"

Rohit 17:42

I think as in, we have talked to many people in the ecosystem. And again, first and foremost, the obvious answer is SoftBank is clearly a big believer in ridesharing. As in, if you draw out the evolution of ridesharing and intersect that with the advent of self-driving cars over the next 4, 5, 6 to 10 years, I'm sure SoftBank's [inaudible] scenario of the evolution of ridesharing as a whole assumes significant benefits to ridesharing companies as we get into more level 4, level 5 autonomous cars on the road. Tesla today has level 4. Toyota, Nissan, Volvo already have announced 2019 car models with level 4 self-driving capabilities. Just today, morning, I heard news that both Waymo and Uber's truck unit have level 5 self-driving units on the road in outskirts of Arizona. So again, this self-driving and ridesharing is clearly something that SoftBank is banking on, and that's where they think the industry is going.

Rohit 18:57

The second kind of speculative aspect is kind of by owning the various pieces of ridesharing today - Uber in the US and certain parts of the world, Didi in China, Grab in Southeast Asia, Lyft clearly is a fast follower; Ola, India, and so on, and so forth - SoftBank has clearly a lot of influence on how this industry [inaudible]. They can clearly participate in consolidation of the industry. They can clearly play a big role in how the profitability of the entire industry kind of shake up over the next 18 to 24 months. As in, if you believe that there are people who still think that ridesharing companies are simply a passthrough from VC money to drivers and consumers, there is still a bigger question to be asked. At a large scale, what is the profitability level of ridesharing companies? There is irrational behavior, and there is extreme price competition among some of these companies that you see on this chart. So SoftBank can be the player that comes in and eliminates irrational behavior between ridesharing companies, and essentially kind of lifting the profitability of the entire industry as a whole. So that's what we will be focusing on over the next 12 months or so, as some of these companies that you see start taking real concrete steps towards an IPO event in the next 12 to 24 months. That's the state of the ridesharing industry.

Rohit 20:36

The second report that we published back in late December was about Lyft, and the overarching conclusion was clearly, Lyft is closing the gap that Uber. It's probably growing faster than the market, and it seems to be executing in Uber's shadows fairly well. Why is that? First and foremost is kind of Lyft has gone from 50 cities to more than 300 cities in a matter of 18 months. How did they do that? They have raised $4 billion in the last 5 years, but half of that money - $2 billion - they raised in last 12 months. So they did [inaudible] the investment, kind of. They have a lot of dry powder on the balance sheet. There is the kind of series of F&G in February of last year and in October or November of last year. So again, 2017 has been a good year for Lyft, and they have added more cities, more people, more drivers, and so on, and so forth. They also announced that they would kind of step outside the US for the first time, starting with Canada. And probably, they started doing experiments in a few cities in Canada in late Q3, early Q4 of 2017.

Rohit 21:58

Lyft still has about half a million drivers, which is still a fraction of what Uber has said, more than 4 million drivers. Lyft has delivered half a billion rides, which is still less than what Uber has mentioned, more than 5 billion rides. So again, this is to keep things in perspective. Things have been great for Lyft, and they're clearly catching up, but there is still ways to go. What we also found more compelling for Lyft is when we compared the old market trends in terms of how much people are spending and how much Lyft users are spending. We found a greater uptick of more positive directional kind of spend for Lyft consumers. Again, we don't want to split hairs here, but this was when we started these things of what did Uber people say, and what did Lyft people say? And what did the old oil industry, as in old oil consumers, say? We thought it was marginally more positive kind of directional spend by Lyft users as compared to the rest of the industry. So again, an even more compelling insight for us.

Rohit 23:23

In terms of kind of the brand awareness, the brand perception, and various different things which we believe is a leading indicator for companies' performance, as in as a company's brand awareness increases, that typically results in a pretty positive halo effect for the company. Do you lower the marketing spend? That helps the profitability. You have more consumers aware of your brand, more consumers thinking positively about your brand. And all those things help the company over the longer term, as such. I think a key feature of the Lyft brand which they have been able to cultivate is the friendly progressive brand image that they have. Although, we don't see the signature pink carstaches, like the mustache, pink mustache on Lyft cars today. The underlying message that we are a fun, light-hearted community of drivers, where you have casual conversations. You kind of come and ride on the front seat. You also give fist bumps to drivers, and so on, and so forth. That has helped while Uber has been struggling with its brand perception.

Rohit 24:38

Also, kind of if you look at how these companies came to market at the beginning, Uber started off with the black car service and came down market. Now on the other hand, Lyft was one of the first ridesharing companies to come in with a lower-end budget ridesharing option. So since then, both companies have kind of-- Uber has come down market. Lyft has gone up market. But the way these companies started, the brand image still stays. And probably, that helps Lyft over the longer term.

Rohit 25:15

We are getting a couple of questions here. I'm just trying to read that. Is there any evidence to suggest that Uber's PR problems is helping Lyft in terms of recruiting drivers and winning over consumers? I would that yes, that is true, as in from my personal experience. As in a shameless plug here, but I signed up for driving with Uber in late 2016, early 2017. Spent some time on the road in my Lexus SUV, giving Uber rides undercover. There was nothing undercover about it, frankly. And then, I repeated for Lyft as well, where I went to the Lyft hub. For people in San Francisco definitely know that pink [inaudible] high up in the air next to US101 exit. That's where the Lyft hub is. That's where they kind of train drivers, and give them orientation, and things like that. So again, my personal experience was Lyft probably is doing a marginally better job in kind of building a driver community that is more cohesive, in building a community that has better quality control across these drivers as well as the cars. Again, that doesn't mean that Uber hadn't caught up, but that was my just personal experience trying to sign up for Lyft versus signing up Uber. Lyft is clearly taking that extra step. When you want to go in and become a driver for Lyft, there's almost a 3 to 6-hour kind of process where they check your car. They give an orientation and many other things associated with it.

Rohit 27:11

Again, that's probably one way that Lyft is controlling the supply, as well as controlling the quality of supply, which is a pretty important aspect in a two-sided marketplace. I know this may not answer your question, but that was just something that I observed from my personal experience. Also, another aspect of why Lyft may be winning right now is one, kind of when you look at the profitability of Lyft, we think that the growth has outpaced its losses. By that, what we mean is they're able to grow faster, and yet control the amount of money that they are spending on expansion in cities, acquiring new drivers, getting more consumers to use the service, so on and so forth. Why is that? As in, we would categorize that as a second [inaudible] advantage. As Uber probably or arguably has forced more disadvantage. And by that, what we mean is Uber probably has had the responsibility of a) establishing a new category of service, building consumer awareness around ridesharing, probably 12 to 18 to 24 months ahead of Lyft. And Uber has also had to bear the burden in pushing to establish a legal framework for ridesharing applications. And also, they have had to take greater risk to operate in legally tenuous circumstances.

Rohit 28:44

On the other hand, Lyft has focused exclusively on US. They have put all their resources on marketing their specific brand. Although, they also need to raise the awareness of ridesharing industry as a whole, but the great burden of proof probably has been on Uber, as they have been the trailblazer in the industry. So legal expenses, marketing expenses have kind of-- Uber has had to pay a slightly more as compared Lyft. And hence, we think Lyft has this boon of being a second [inaudible], and they have had lesser incremental costs as such, which may give us greater confidence that Lyft is probably on a faster pathway to profitability as compared to Uber today. But as they expand into other cities, as they expand into other geographies, I think the spend that Lyft will need to do is probably going to be as much or higher. So again, it remains to be seen. But we think as it stands today, Lyft has definitely had a second [inaudible] advantage, and that's probably the third reason why they have been winning over the last 12 to 18 months.

Rohit 30:05

The big 800-pound gorilla bruised and hurt in the corner, is it back on track? That's the question that we get. As in, Uber has had a bumpy ride over the last 12 months, to say the least. As in, first 8 months or so during 2017, there was a steady churn of lot of management teams. Obviously, they lost the CEO in June. They had the lawsuit with Google and Waymo dangling over their head. Obviously, the big blog post by Susan Fowler came in the beginning of last year. So you had the recommendations, the whole [inaudible] report come out. So the stream of negative events just wouldn't stop. As in, there was nothing that was going in Uber's way. And probably the tipping point was around July or August when they did the joint venture with Yandex, which was kind of almost a year after they did the joint venture with Didi in China. So they had now Russia and China taken care of, and then the new CEO came on board. And the last 3 to 4 months in Uber have been, I would say, a hint of the fact that Uber is turning around a corner.

Rohit 31:31

While it was having all these issues, what we were surprised by was that the rate of kind of accelerated growth that Uber has had did not change. As in, despite all the foreseen challenges, the company continued to grow. And add kind of the 5 billion to [inaudible] in May of 2017. And in late 2017, they said, "We did 4 billion rides in 2017 alone." So you can do the math, and their daily ride rate has clearly accelerated as the year progressed, despite all the perceived challenges. So as in what we tell to investors is Uber has a lot of nonfundamental issues. The CEO has probably 99 things to check off its IPO readiness checklist. But fortunately for him, growth is not something that he's only focused on as the company continues to kind of grow at a rate that for a company of this size and scale, we haven't seen quite often.

Rohit 32:48

So what do we expect the CEO to do? As in, first and foremost, they need a new CFO. They need IPO worthy, kind of Clevel executives, probably a CMO. There has been some churn in the last couple of months, so having a steady bench of management team before the company decides to go public, is something that we'll keep a close eye on. And also, kind of while this may feel like a squishy topic, all the hits that the company and the employees have taken over last 12 months from media, and PR, and the external brand perception, probably there is a lot of work in terms of employee morale, and kind of discipline, and many other things to be done. So that's kind of more inward focused, as well as building the management team. It's something that we would expect the CEO to do over the next to 12 months.

Rohit 33:51

Also, what we found was as an offer of the SoftBank deal happened, assuming kind of a blended valuation was about 54 billion. How we come up with that? $48 billion in secondary market, and $69 billion in the brand refunding. So kind of blended up. Weighted average is about $54 billion. That's the worth of the company today, according to SoftBank. But then we thought that, "Why would SoftBank do this? Is this a good deal? Is it a 3X or a 2X exit scenario for SoftBank from here on out?" So we decided to come up with a sum-of-parts evaluation analysis. On the left, you have kind of Uber's investment in Didi. Didi was worth about $50 billion. Uber owns about 18% of that, so that's about $8.85 billion. Uber in Russia, Yandex, the market [inaudible] Yandex, last I checked was about 12 or 13 billion dollars. Yandex.Taxi, which kind of a unit of-- public reports say that it's worth about 30 to 40 percent of Yandex today, and Uber owns about 40% Yandex.Taxi. I'm doing the math really quickly, but I can show you the backup later. So Uber's worth in Yandex today is about worth $2 billion. Again, Uber can sell its Southeast Asia business to kind of Ola and Grab.

Rohit 35:34

Why did we come up with a billion dollars? Again, Ola and Grab today combined are worth about 10 to 12 billion dollars. Again, lacking any other proxy, we think Uber's kind of business in those 2 or 3 countries in Southeast Asia is worth 10% of those [inaudible]. So probably, if Uber were to strike deals that are similar or do what they did in China and Russia, a reasonable kind of conservative estimate would be, it would be worth about a billion dollars. What about Waymo was to sell self-driving-car unit of Uber? Why do we come with a $5 billion estimate? Waymo is estimated to be worth about $50 billion today. That's what people assign the valuation. Again, that's a very qualitative and a subjective argument to be made. Lacking any other any [inaudible], we think Uber self-driving-car unit if operated as a standalone or divested off could be worth $5 billion, is what Uber could sell it at. Add that to about $5 billion in cash at the end 2018, where we assume that they ended 2017 with $6 billion in cash, and they burn another billion dollars during all of 2018.

Rohit 36:59

So the point here is there are non [inaudible] assets in cash worth more than $22 billion. Now, you take out that from Uber's kind of $54 billion blended valuation, so the core of Uber which is ridesharing business which has Uber Eats, which has Uber in Europe, Uber in certain parts of Latin America, outside of China, Russia, India, and Indonesia, and Singapore. So it's worth about $32 billion. So again, this business that's growing at 100% year-on-year, with probably a net revenue in the range of 10 to 12 billion dollars, is what we estimate in 2018. So conservatively speaking, SoftBank paid about 3 times revenue. It's less than 3 times revenues for the core Uber from operating business, which in our opinion was a pretty smart deal. So I believe that's all we had. We are getting close to our kind of 10:40 mark.

Rohit 38:03

There are a series of questions. One of them that seems to be the [inaudible] is when do you think Uber and Lyft will go public? Again, that would be a fairly speculative question to answer. Both companies have mentioned publicly that they want to be-- as in, no pun intended here, but both companies have publicly mentioned that they would like to public over the next 12 to 24 months. Uber CEO has been probably more vocal about this in terms of setting a timetable. I believe unless they have a CFO, Uber probably has another 12 to 18 months after they hire a CFO. So that's one kind of anchor that would I look out for. As far as Lyft, they have been steadily managing their management team, as well as they have a lot of cash in the bank comparable to the size of the company. So they may not be in a very big rush, unless kind of they want to preempt Uber's IPO. But again, it is going to be very exciting times, nonetheless. So I know I'm not giving you a straight answer. My guess is towards the end of 2019 is when we'll probably see Lyft go public following Uber after that.

Rohit 39:31

I'm scrolling through questions and trying to find the most common ones that seem to be repeating. Something that people have asked is what does Uber's kind of secondary deal say about the broader secondary market? That's a very interesting question. As in, one thing that we feel happy about - regardless of SharesPost's kind of participation in the Uber secondary deal or not - it is, in our opinion, a pivotal kind of event as far as the kind of classic Silicon Valley VC's mindset towards secondary market and secondary trades, that concern. The 30% discount to what Uber was valued at probably was accentuated by a few things. For example, Uber's data breach came in during the SoftBank negotiation process. Uber's kind of litigation that it would be a transportation company in Europe came out during that period. As it was the Q3 reserves which probably weren't as overwhelmingly positive from a profitability standpoint. Those things came out during SoftBank negotiations.

Rohit 41:04

So the 30% discount which people seem to anchor around for primary versus secondary kind of things seem to be tad bit higher than what we believe could have been a good deal. So we are almost at time. I know there are a few more questions that we need to go to, but again, Adam and Mark who are patiently sitting here next to me are kind of giving me a timeout. And I'll keep in mind all these questions and probably circle back to them while I email again. I know we have received a whole bunch of emails around kind of, "Are you going to share this information in all of the thing?" Yes, we will be sending a follow-up email with a link to the presentation within the next few days. So again, we'll probably wrap it up right here, and my contact information is on the screen. If you will have any questions, I'll definitely try to get back to more questions in the queue. There are more than a handful that I can see. And also, I hope everyone on the East Coast stays indoors and stays warm in the upcoming winter storm. But kind of we are happier in sunny San Francisco, and we are almost ready to welcome spring in the next 10 days. And we definitely appreciate the daylight time saving that's coming up this weekend, although we'll lose 1 hour sleep, I think.

Rohit 42:48

Anyhow, thank you very much for joining us today. Hope everyone has a fantastic weekend. Thanks.
[silence]

PLEASE READ THESE IMPORTANT LEGAL NOTICES & DISCLOSURES

CONFLICTS

This report is being published by SharesPost Research LLC, and distributed by SharesPost Financial Corporation, a member of FINRA/SIPC. SharesPost Research LLC, SharesPost Financial Corporation and SP Investments Management, LLC, an investment adviser registered with the Securities and Exchange Commission, are wholly owned subsidiaries of SharesPost, Inc.

Recipients who are not market professionals or clients of SharesPost Financial Corporation should seek the advice of their own personal financial advisors before making any investment decisions based on this report. None of the information contained in this report represents an offer to buy or sell, or a solicitation of an offer to buy or sell, any security, and no buy or sell recommendation should be implied, nor shall there be any sale of these securities in any state or governmental jurisdiction in which said offer, solicitation, or sale would be unlawful under the securities laws of any such jurisdiction.

This report does not constitute an offer to provide investment advice or service. Registered representatives of SharesPost Financial Corporation do not (1) advise any member on the merits or advisability of a particular investment or transaction, or (2) assist in the determination of fair value of any security or investment, or (3) provide legal, tax, or transactional advisory services.

ANALYST CERTIFICATION

The analyst(s) certifies that the views expressed in this report accurately reflect the personal views of such analyst(s) about any and all of the subject securities or issuers, and that no part of such analyst compensation was, is, or will be, directly or indirectly related to the specific views contained in this report.

Analyst compensation is based upon various factors, including the overall performance of SharesPost, Inc. and its subsidiaries, and the performance and productivity of such analyst, including feedback from clients of SharesPost Financial Corporation and other stakeholders in our ecosystem, the quality of such analyst’s research and the analyst’s contribution to the growth and development of our overall research effort. Analyst compensation is derived from all revenue sources of SharesPost, Inc., including brokerage sales.

DISCLAIMER

This report does not contain a complete analysis of every material fact regarding any issuer, industry, or security. The opinions expressed in this report reflect our judgment at this date and are subject to change. The information contained in this report has been obtained from sources we consider to be reliable; however, we cannot guarantee the accuracy of all such information.

Any securities offered are offered by SharesPost Financial Corporation, member FINRA/SIPC. SharesPost Financial Corporation and SP Investments Management are wholly owned subsidiaries of SharesPost, Inc. Certain affiliates of these entities may act as principals in such transactions.

Investing in private company securities is not suitable for all investors. An investment in private company securities is highly speculative and involves a high degree of risk. It should only be considered as a long-term investment. You must be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid and there is no guarantee that a market will develop for such securities. Each investment also carries its own specific risks and you should complete your own independent due diligence regarding the investment, including obtaining additional information about the company, opinions, financial projections and legal or other investment advice.

Accordingly, investing in private company securities is appropriate only for those investors who can tolerate a high degree of risk and do not require a liquid investment.

SharesPost, the SharesPost logo, My SharesPost, the SharesPost Index, and SharesPost Investment Management are all registered trademarks of SharesPost, Inc. All other trademarks are the property of their respective owners.

Copyright SharesPost, Inc. 2019. All rights reserved.

PLEASE READ THESE IMPORTANT LEGAL NOTICES & DISCLOSURES

CONFLICTS

This report is being published by SharesPost Research LLC, and distributed by SharesPost Financial Corporation, a member of FINRA/SIPC. SharesPost Research LLC, SharesPost Financial Corporation and SP Investments Management, LLC, an investment adviser registered with the Securities and Exchange Commission, are wholly owned subsidiaries of SharesPost, Inc.

Recipients who are not market professionals or clients of SharesPost Financial Corporation should seek the advice of their own personal financial advisors before making any investment decisions based on this report. None of the information contained in this report represents an offer to buy or sell, or a solicitation of an offer to buy or sell, any security, and no buy or sell recommendation should be implied, nor shall there be any sale of these securities in any state or governmental jurisdiction in which said offer, solicitation, or sale would be unlawful under the securities laws of any such jurisdiction.

This report does not constitute an offer to provide investment advice or service. Registered representatives of SharesPost Financial Corporation do not (1) advise any member on the merits or advisability of a particular investment or transaction, or (2) assist in the determination of fair value of any security or investment, or (3) provide legal, tax, or transactional advisory services.

ANALYST CERTIFICATION

The analyst(s) certifies that the views expressed in this report accurately reflect the personal views of such analyst(s) about any and all of the subject securities or issuers, and that no part of such analyst compensation was, is, or will be, directly or indirectly related to the specific views contained in this report.

Analyst compensation is based upon various factors, including the overall performance of SharesPost, Inc. and its subsidiaries, and the performance and productivity of such analyst, including feedback from clients of SharesPost Financial Corporation and other stakeholders in our ecosystem, the quality of such analyst’s research and the analyst’s contribution to the growth and development of our overall research effort. Analyst compensation is derived from all revenue sources of SharesPost, Inc., including brokerage sales.

DISCLAIMER

This report does not contain a complete analysis of every material fact regarding any issuer, industry, or security. The opinions expressed in this report reflect our judgment at this date and are subject to change. The information contained in this report has been obtained from sources we consider to be reliable; however, we cannot guarantee the accuracy of all such information.

Any securities offered are offered by SharesPost Financial Corporation, member FINRA/SIPC. SharesPost Financial Corporation and SP Investments Management are wholly owned subsidiaries of SharesPost, Inc. Certain affiliates of these entities may act as principals in such transactions.

Investing in private company securities is not suitable for all investors. An investment in private company securities is highly speculative and involves a high degree of risk. It should only be considered as a long-term investment. You must be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid and there is no guarantee that a market will develop for such securities. Each investment also carries its own specific risks and you should complete your own independent due diligence regarding the investment, including obtaining additional information about the company, opinions, financial projections and legal or other investment advice.

Accordingly, investing in private company securities is appropriate only for those investors who can tolerate a high degree of risk and do not require a liquid investment.

SharesPost, the SharesPost logo, My SharesPost, the SharesPost Index, and SharesPost Investment Management are all registered trademarks of SharesPost, Inc. All other trademarks are the property of their respective owners.

Copyright SharesPost, Inc. 2019. All rights reserved.