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Instacart has a new CFO 🤑
Emily Reuter takes the reins on Instacart's finance team, Neuralink "snag", and Roblox shares plunge
chrisnolansf
May 13, 2024
Today’s newsletter is 695 words - a 3-minute read (5-minute if you’re…🐌)
Welcome everyone,
Who we are: We’re Chris & Nolan (@chrisnolansf), two former colleagues who met via investment banking in San Francisco and bonded over the f***ing horrible incredible learning opportunities. We’re now working on a couple ventures together and thought, why not add a newsletter to the ever-growing list. So here we are. What we’ll be writing about → the latest business and cool local news in San Francisco.
Why the name: SF Whisper? Because… at the end of each newsletter 👇, we’re going to have a whisper. This could be a secret, or a fun prize like:
dinner & drinks with us at Quince Taco Bell Cantina
trending spots in the City for entertainment & nightlife
new hot restaurants and bites
our feet pics 🦶 👀
Anyways. Let’s get started.
Nick Giovanni out, Emily Reuter is up
Instacart changes CFOs
Instacart's CFO Shake-up: Instacart made waves this week with the departure of CFO Nick Giovanni, signaling a strategic shift in its leadership. CEO Fidji Simo emphasized the need for a CFO with a deep understanding of complex marketplace dynamics, ultimately appointing Uber veteran Emily Reuter to the role. Giovanni's departure marks a transition from a focus on going public to addressing operational challenges, highlighted by Instacart's modest revenue growth in the first quarter.
Navigating Instacart's Evolution: Giovanni's exit underscores the evolving landscape at Instacart, transitioning from its founder-led era to a more complex business environment. His tenure coincided with significant valuation fluctuations and leadership changes within the company. As Instacart grapples with profitability and growth concerns, Simo and the new CFO face the daunting task of revitalizing the company amidst fierce competition in the gig economy sector.
The Maturity of Gig Economy Giants: The recent financial performances of gig economy stalwarts like Lyft, Airbnb, and Uber underscore a remarkable transformation. Despite past struggles and market fluctuations, these companies are now demonstrating maturity and stability, with substantial free cash flow generation. While challenges persist, particularly for Lyft, under new leadership, the sector as a whole reflects a significant shift towards sustainable growth and profitability.
Neuralink hits a “snag”, Elon upset with media
Elon Musk’s Neuralink reported to hit a “snag”, Elon unhappy with media
A Bumpy Start: Neuralink, led by Elon, encountered a hiccup following its first human brain implant. The device, designed to help paralyzed patients control technology with their minds, faced a malfunction when several micro threads retracted from the patient's brain. This snag reduced the effectiveness of the 1,024 electrodes, which are crucial for transmitting brain signals.
Trial and Error: In January, Neuralink took a giant leap by implanting its brain-computer interface (BCI), dubbed the Link, into 29-year-old Noland Arbaugh. Initially deemed a success, with live demonstrations showcasing Arbaugh controlling a cursor via thought, issues soon surfaced. Neuralink has since tweaked its technology to better interpret brain signals, despite the retracted threads.
Safety First: Neuralink confirms Arbaugh is safe and actively using the device. The company is refining the system while continuing safety evaluations ahead of FDA approval. Legacy media biased towards negative coverage resulting in Elon tweeting:
Roblox graphic with controllers
Forecast Falls Short: Roblox shares nosedived 22% as the gaming platform slashed its annual bookings forecast from $4.28 billion to between $4 billion and $4.10 billion, citing reduced player spending amid economic uncertainties and rising inflation.
Gaming Glitches: The industry at large is hitting a rough patch, with layoffs and studio shutdowns becoming more common. Electronic Arts also reported a dim revenue outlook, mirroring the challenges faced across the sector.
Ad Strategy Shift: In response, Roblox is venturing into digital advertising, launching virtual billboards featuring brands like Walmart and Warner Bros Discovery. The company aims to develop its ad platform through 2024, with revenue predictions expected in 2025.
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