The Hustle

Coinbase and Roblox have great mind share

Coinbase and Roblox spend much less on marketing (as a % of revenue) than other hot tech names.


March 2, 2021

BURLINGAME, CALIFORNIA - AUGUST 10: David Baszucki, founder and CEO of Roblox, presents at the Roblox Developer Conference on August 10, 2019 in Burlingame, California. (Photo by Ian Tuttle/Getty Images for Roblox)

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.

Roblox was valued at $29.5B in a January funding round, while Coinbase has traded above $100B in private secondary market transactions.

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:

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.

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