00:00This is a confidential filing for an IPO. What does that mean and how is that different from a regular filing? Yeah. So typically companies file confidentially whether we hear about it or they make a big fuss with the press release a few months before they actually would publicly flip. And typically when you publicly flip that means you're opening up your entire business's scrutiny. So you're including financials. You're including any warnings that investors should know. And that starts the clock to actually go public. So normally when you file confidentially you at least still have a few months before you actually
00:29want to be publicly on the road. Whereas typically you would say if you're publicly on file call it three weeks later you should be public. Okay. So I mean the clock is ticking but not in a hard way. Exactly. It's us learning about this and reporting it out is another signal that they actually are going to go public. So the most recent funding round valued discord at about $15 billion. What are people thinking in terms of how big of an IPO this might be? Yeah. That was back in 2021 when things were quite different for the company and for peers. I spoke with a couple analysts who cover the company.
00:59And they say at least according to private markets it's trading right now around seven eight billion dollars in market cap. Even according to them that still feels a bit lofty. So if you just use the back of the envelope or use napkin math call it seven billion dollar market cap. You float a little more than 10 percent. About a 750 million dollar IPO potentially. But again that's just using a lot of hypotheticals. Okay. And that's what we have to work with for now because we don't have any of the financials. Tell us a little bit more about the company itself.
01:26I mentioned it's a chat app platform very popular with gamers with programmers. What is the business model exactly? Well they've unleashed and unveiled kind of a paid tier.
01:36So when you think about discord and you think back to 2020 and 2021 when Microsoft was looking to take them over when they had that big funding round they were seen kind of as a comp to Reddit.
01:45So people would use their platforms to communicate. People are using it to trade ideas for investing or to talk about music or talk about other things.
01:52So they are unveiling or they have recently unveiled kind of this paid tier. So that's a way for them to try to generate more revenue. The big question again when
02:00they do file publicly will be what do those user metrics look like. Are they converting people who use the platform for free to paying up for it.
02:08And what does that actual monetization look like in the long run. And again this is a company that has penetrated internationally. And as we know what some of
02:15these international people don't like paying up for some of these products.
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