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A year after its IPO, Stitch Fix keeps pulling revenue out of the box
Stitch Fix’s stock jumped 14% after it beat expectations and announced a new line for kids, and it’s shaping up to be one of the few subscription boxes that can stand on its own.
When the subscription clothing company went public a year ago, critics doubted the company’s prospects. But, so far, the company has proved the haters wrong -- a win for AI-driven style curation, female tech founders, and your closet.
The ’Fix knows it looks great
After raising $120m in its IPO last year, Stitch Fix tried on a few different tactics in its first public quarters -- but it finally found one that looks goooood…
The company increased its revenue 29% and grew its customer base 30% in the past year -- beating Wall Street’s quarterly estimate by more than $10m.
So how did Stitch Fix founder and CEO Katrina Lake and her 50% female executive team pull such a big win out of the box?
The company Stitched together multiple threads for a perfect fit
Stitch Fix uses AI for efficiency and a human touch for personalization -- giving it a competitive advantage over physical stores and e-commerce giants alike.
After its IPO, Stitch Fix doubled down on its hybrid advantage by hiring an experienced, hotshot CMO and continuing to respond to consumers with lines like Plus Sizes and Kids.
Stitch Fix’s combination of AI and human stylists garnered widespread praise -- and the sincerest form of flattery (imitation) from some dangerous competitors.
The subscription box that’s beating the odds
Other boxes copied Stitch Fix’s model, but none could unbox consistent revenue. Competitor Trunk Club sold out to Nordstrom for just $350m -- Stitch Fix, in contrast, did $1B in sales in 2017.
But the bigger key to Stitch Fix’s success is its immunity to the e-commerce angel of death, Amazon.
The newly created Amazon Wardrobe mimics many of Stitch Fix’s features, but Lake is not concerned about the e-commerce giant, telling Bloomberg “we’re not in a place where we’re competing with Amazon.”
Hey, if it ain’t broke, Stitch Fix it
Holy petaflops: IBM’s new supercomputer is set to take top spot as world’s fastest
The world’s fastest computer is ranked twice annually by computer scientists in the US and Germany and, for the last 5 years, China has owned the title.
China’s Sunway TaihuLight has taken the top honors for the last 2 years, but, as of last Friday, a US-made supercomputer by IBM is expected to top the rankings for the first time since 2012.
Its name is Summit, and it’s really friggin’ fast
According to IBM, we’re talking 200 petaflops fast (that’s a processing rate of 200 quadrillion calculations per second), or as the Wall Street Journalputs it, “200,000 trillion.”
It’s reportedly so fast that it would take 6.3B people to make a calculation at the same time, every second, for an entire year to match what this $200m supermachine can do in a single second.
These massive refrigerators occupy space of two tennis courts, and chug 4k gallons of water a minute to cool 37k processors.
Putting the super back in supercomputer
While cloud computing is stealing a lot of thunder these days, experts believe high-performance computing is still a necessity for things like national security, science, and economic competitiveness (Summit in particular is the first of its kind to handle machine learning, neural networks, and other AI applications).
All important stuff -- but, for now, Summit’s at the bar celebrating at twice the peak speed of the Sunway TaihuLight.
Uber wants to patent a system that knows if you’re wasted or not
What do you do when you’ve had a few too many Bud heavies at happy hour? You ring your friendly neighborhood Uber, of course.
But that means, as a sober person, if you roll the dice on the Pool, it can be downright awful: belligerent yelling, an unwanted hand on the leg, maybe even a dry heave or 2.
Not to worry though, according to a patent application seen by CNN. Uber is working on a plan to detect a user’s drunken behavior before they get into the back seat.
It’s called, UberAA
The system, described by members of Uber’s Trust & Safety team in 2016, tracks how someone normally uses Uber’s app through AI -- if they commit typos, their walking speed, and the rate at which they drop their phone.
Essentially it’s a keystroke system that notifies drivers if you’ve been drinking, but also your every move during the walk of shame.
Sounds like a great idea… on paper
But, of course, notifying a driver beforehand could set a few liabilities in motion: Like, as The Verge hypothesizes, motivating a driver to decline picking up Sloshy McSlosherson, which, to the wasted, could be code for, “You’re too drunk, drive home instead.”
Of course, this product is in its early stages -- or should we call it the pre-game?
We always have our ears to the ground, listening for ways we can make our email better than ever. Here’s some recent feedback we’ve fielded from the peanut gallery.
“I love your copy editor. If it’s a guy, is he single? The word play is epic.” -- Grace G.
Shoutout to our copyeditor Jim! He’s a guy, he’s not single, and he doesn’t write the words per se, but he catches our typos and we don’t tell him we appreciate him enough. You’re the man, Jim.
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We exist to make business and tech news easy to digest and accessible -- if you don’t know why a story matters, we’re not doing our job. We’ll keep striving to break down the news in a relevant way, you keep keeping us honest.
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-- The Hustle Editorial team
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