Picture credits: Roku Inc.
The fallout from the Silicon Valley Bank collapse is impacting a range of startups and large corporations, 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 approximately $487 million at SVB, which represents approximately 26% of its cash and cash equivalents as of March 10, 2023, as Variety was first to report. Its remaining balance of $1.4 billion is split among other major financial institutions, he said.
“At this time, the Company does not know to what extent the Company will be able to recover its cash on deposit with SVB,” Roku’s filing reads. “Notwithstanding the closure of SVB, the Company continues to believe that its cash and cash equivalents balance and operating cash flow will be sufficient to meet its working capital, capital expenditures and cash requirements. material from known contractual obligations for the next twelve months and beyond,” he said.
Roblox had just beaten a fourth-quarter profit with $867.1 million in revenue versus Wall St. expectations of $801.69 million, and a fourth-quarter loss of $1.70 per share to 1, $72 expected. However, the company’s guidance for the first quarter of 2023 was still conservative, citing the current macroeconomic environment. The shares have since fallen more than 3% in after-hours trading. Yesterday, Roblox announced a partnership with Best Buy and its advertising business.
Meanwhile, gaming platform Roblox said in a filing that about 5% of its $3 billion cash and securities balance was held by SVB as of February 28, 2023.
“Thus, regardless of the end result and timing, this situation will have no impact on the day-to-day operations of the company,” Roblox assured investors. The company’s stock had just been upgraded by Jefferies analyst Andrew Uerkwitz from hold to buy, citing the platform’s ability to continue to grow despite short-term worries about the economy.
The updates are a further indication of the failing bank’s close ties to the wider tech industry and the further consequences its closure could have on branded businesses.
In addition to Roku and Robox, omnichannel digital marketing company and Coupons.com owner Quotient also revealed less impact, noting that it held $400,000 in Silicon Valley Bank UK Limited, a UK 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 a filing with the SEC that it holds accounts at SVB with a total balance of less than $250,000, meaning it is FDIC insured. “The company believes that it is not exposed to any liquidity issues at SVB. The company has a well-structured and diverse set of banking partners, with no bank holding more than 25% of its total cash,” noted the Vimeo folder.
Other companies post on social media and leak documents to assure investors they are not exposed.
For example, SoFi announced in a tweet and in a filing indicating that it has no assets with SVB and that its only exposure was a “very small loan facility” that was provided to the company for less than $40 million, which did not been “affected by the FDIC’s receivership of Silicon Valley Bank,” the message read, likely in hopes of avoiding contagion from that disaster.
Streamer fuboTV also filed a request to inform investors that it does not hold any deposits or have any investments in SVB.
SVB was shut down 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.