Roku, Roblox and Others Reveal Their Exposure to SVB in SEC Filings

The fallout from the Silicon Valley Bank collapse is hitting a variety of startups and larger companies, including, as we now know from SEC filings, publicly traded companies like Roku, Roblox, Quotient, and others. Roku said in a filing that it held about $487 million in SVB, representing about 26% of its cash and cash equivalents as of March 10, 2023, as Variety first reported. Its remaining balance of $1.4 billion is distributed among other large financial institutions, it said.

“At this time, the Company does not know to what extent it will be able to recover its cash deposited with SVB,” the Roku document stated. “Despite the closure of SVB, the Company continues to believe that its balance of cash and cash equivalents and cash flow from operations will be sufficient to meet its working capital, capital expenditures, and material cash requirements of contractual obligations. known for the next twelve months. and beyond,” he said.

Roku had just topped fourth-quarter earnings with $867.1 million in revenue compared with Wall St. expectations of $801.69 million, and a fourth-quarter loss of $1.70 per share vs. to the expected $1.72. However, the company’s guidance for the first quarter of 2023 had still been cautious, citing the current macroeconomic environment. Since then, shares have fallen more than 3% in after-hours trading. Yesterday, Roku announced a partnership with Best Buy and its advertising business.

Meanwhile, gaming platform Roblox said in a filing that roughly 5% of its $3 billion cash and securities balance was held in SVB as of February 28, 2023.

“Therefore, regardless of the final outcome and timing, this situation will have no impact on the Company’s day-to-day operations,” Roblox assured investors. Jefferies analyst Andrew Uerkwitz had just upgraded the company’s shares from hold to buy, citing the platform’s ability to keep growing despite near-term concerns about the economy.

The updates are yet another indication of how closely connected the failed bank was to the larger tech industry and the further ramifications its closure could have on brand name companies.

In addition to Roku and Robox, omnichannel digital marketing company and owner of, Quotient, also revealed a smaller impact, noting that it had $400,000 in Silicon Valley Bank UK Limited, a UK-based subsidiary of SVB. .

Space company Rocket Lab USA said it had $38 million in cash, or 7.9% of its total cash as of December 31, 2022, with SVB.

Vimeo said in an SEC filing that it has accounts at SVB with a total balance of less than $250,000, meaning it is FDIC-insured. “The company believes that it has no exposure to any liquidity problems at SVB. The Company has a diverse and well-structured set of banking partners with no one bank holding more than 25% of its total cash,” the Vimeo document noted.

Other companies have been posting on social media and disclosing in filings to reassure investors they were not exposed.

For example, SoFi announced in a tweet and in a filing that it has no assets with SVB and its only exposure was a “very small loan facility” that was provided to the company for less than $40 million, which was “unaffected by the Silicon Valley receivership.” Bank by the FDIC”, the post read, probably hoping to avoid contagion from this catastrophe.

Streamer fuboTV also came forward to inform investors that he did not have any deposits or investments in SVB.

SVB was closed by regulators on Friday and will reopen on Monday with the FDIC in charge. He said all insured depositors will have full access to insured deposits no later than Monday morning. Deposits are insured up to $250,000 per depositor.

Source link

James D. Brown
James D. Brown
Articles: 8689