The fallout from the collapse of the Silicon Valley bank is affecting many startups and large firms, including, as we now know from SEC filings, publicly traded companies like Roku, Roblox, Quotient, and others. Roku said in a filing that it had approximately $487 million in SVB, representing approximately 26% of cash and cash equivalents, as of March 10, 2023, as Variety first reported. Its remaining $1.4 billion has been distributed to other large financial institutions.
“At this time, the company does not know to what extent the company will be able to deposit its cash in SVB,” Roku’s filing said. “Despite the closing of SVB, the Company believes that its existing cash and cash equivalent balances and cash flows from operations will be sufficient to meet its physical cash requirements from working capital, capital expenditures, and known contractual obligations for the next twelve months.” will be sufficient. and beyond,” it said.
Roblox had a fourth-quarter earnings decline with $867.1 million in revenue compared to Wall St.’s expectations of $801.69 million, and a fourth-quarter loss of $1.70 per share versus an estimated $1.72. However, the company’s Q1 2023 guidance was still cautious, citing the current macroeconomic environment. Shares declined 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 the filing about 5% of its $3 billion cash and securities balance as of February 28, 2023, was in SVB.
“Thus, regardless of the final outcome and timing, this situation will have no impact on the day-to-day operations of the company,” Roblox assured investors. The company’s stock was upgraded from a hold to a buy by Jefferies analyst Andrew Urkowitz, citing the platform’s continued potential despite near-term concerns over the economy.
The update is another sign of how closely the failed bank was intertwined with the big tech industry and that its closure could have further impacts on brand-name firms.
In addition to Roku and Robox, omnichannel digital marketing firm and Coupons.com owner Quotient also disclosed a smaller impact, noting that SVB’s UK-based subsidiary held $400,000 in Silicon Valley Bank UK Ltd.
Space company Rocket Lab USA said it has $38 million in cash, or 7.9% of SVB’s total cash as of December 31, 2022.
Vimeo said in an SEC filing that it maintains accounts in SVB with total balances of less than $250,000, which means it is insured by the FDIC. “The company believes that SVB has no exposure to any liquidity concerns. The company has a well-structured and diversified set of banking partners with no bank holding more than 25% of total cash,” Mentioned Vimeo’s filing.
Other companies are posting on social media and disclosing in filings to assure investors that they were not exposed.
For example, SoFi announced in a tweet and a filing that it had no assets with SVB and that its only exposure was a “very small loan facility” provided to the company for less than $40 million, which was “unaffiliated by the FDIC”. Silicon Valley Bank’s receivership,” the post read, in hopes of avoiding contagion from this catastrophe.
Streamer fuboTV also filed a filing informing investors that it does not hold any deposits or make any investments in SVB.
SVB was closed by regulators on Friday and will reopen on Monday with the FDIC in charge. It added that all insured depositors will have full access to insured deposits by Monday morning. Deposits up to $250,000 per depositor are insured.