Roblox’s CEO David Baszucki
flexing presenting (Source: Ian Tuttle / Getty Images)
Crypto exchange Coinbase (listing date TBD) and gaming platform Roblox (listing on March 10) have highly anticipated upcoming public market debuts via direct listings.
Compared to recent hot tech names, both of these startups have spent much less on sales and marketing expenses (as a % of revenue) per CNBC:
- Coinbase = 4%
- Roblox = 6%
- Airbnb = 22%
- Unity = 25%
- DoorDash = 32%
- Palantir = 42%
- Wish = 64%
- Snowflake = 79%
Such low spend — particularly in lead-up to a public listing — suggests that both startups are growing organically.
And if you need a good historical analog: Google only spent 6% of revenue on sales and marketing before its 2004 IPO.
NOTE: We’ll be writing more on Coinbase later this week; you can find our previous piece on Roblox here.