Coinbase and Roblox have great mind share

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

Roblox’s CEO David Baszucki flexing  presenting (Source: Ian Tuttle / Getty Images)

Coinbase and Roblox have great mind share

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:

  • 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.

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