Welcome to Blue Room's Weekend Update. Each week, we're sharing what companies we're researching and the what, the who and the how that we think makes the companies interesting and unique. This roundup is brought to you weekly by a group of interns, creative minds, artists and investors who believe that through best in class investing along with the democratization of financial education we can do great things together. Enjoy, Explore and Share.

On December 3, 2021, DocuSign shares experienced their steepest drop in company history. Despite beating on revenue, net income and earnings per share estimates, and demonstrating improved gross and operating margins, the company missed on future billings and revenue guidance, sinking shares from $230.79 to $135.09—a 41.5% drop. The company stated they will be focusing on sales enablement and product innovation in future quarters as a result. Please read more in Omar Guzman’s DocuSign article below.

Thank you Blue Room Team Leader Omar Guzman

December 2, 2021 at 1:30 PM PST

Operator

Good afternoon, ladies and gentlemen. Thank you for joining DocuSign's Third Quarter Fiscal Year '22 Earnings Conference Call. As a reminder, this call is being recorded and will be available for replay from the Investor Relations section of the website following the call. [Operator instructions] I will now pass the call over to Annie Leschin, Head of Investor Relations. Please go ahead.

Annie Leschin - Head of Investor Relations

Thank you, operator. Good afternoon, everyone. Welcome to DocuSign's third-quarter fiscal year

'22 earnings conference call. On the call today, we have DocuSign's CEO, Dan Springer; and CFO, Cynthia Gaylor.

Novavax is a biotechnology company promoting improved global health through the discovery, development and commercialization of innovative vaccines to prevent serious infectious diseases and address urgent, global health needs. Our vaccine candidates, including both its coronavirus vaccine candidate (“NVX-CoV2373”), and our seasonal quadrivalent influenza vaccine candidate (“NanoFlu™”), are genetically engineered, three-dimensional nanostructures of recombinant proteins critical to disease pathogenesis. We believe that our protein-subunit-based candidates elicit differentiated responses that may be more efficacious than naturally occurring immunity or other vaccine approaches. Additionally, our Matrix-M™ adjuvant has been shown to enhance functional immune responses and has been well-tolerated in multiple clinical trials. To date, we have formulated many of the vaccine candidates in our pipeline with our Matrix-M™ adjuvant, including NVX-CoV2373 and NanoFlu™. Matrix-M™, has been shown to enhance immune responses and has been well-tolerated in multiple clinical trials.

Zuora, Inc. provides cloud-based software on a subscription basis that enables companies in various industries to launch, manage, and transform into a subscription business. The company offers Zuora Central platform that acts as an intelligent subscription management hub that allows customers to orient order-to-revenue operations. Its products include Zuora Billing for subscription billing; Zuora RevPro, a revenue recognition automation solution; Zuora CPQ for configuring deals, pricing, and quoting in a subscription business; and Zuora Collect designed to handle the complicated function of collections associated with subscription-based businesses. The company also provides Zuora Marketplace that offers industry-specific tools and third-party applications for its customers. Zuora, Inc. sells its products through its direct sales force, global systems integrators, management consulting firms, resellers, technology and ecosystem partners.

Aside from “not smoking, maintaining a healthy weight, limiting alcohol intake, eating plenty of vegetables, fruits, and whole grains, vaccination against certain infectious diseases, limiting consumption of processed meat and red meat, and limiting exposure to direct sunlight,” cancer is still largely outside of human control.

There are more than 200 classified types of cancers, and cancer is the second-leading cause of death globally, behind heart disease. 
Biologically, cancer is caused by DNA mutations within human cells that cause cells to grow rapidly and prevent the human immune system from recognizing that the cells are damaged. 

The human immune system largely identifies and kills cancerous cells through immune surveillance with the help of T cells and NK cells. Depending on the types of cancer cells that arise in the body, though, the immune response can be inhibited.

Despite the enormous toll cancer takes on the world, we are on the verge of a major revolution in identifying and treating cancer. 

Exact Sciences Corporation Corporate Profile:

CHANGING LIVES, TOGETHER

Getting ahead of cancer is crucial no matter where people are in their cancer journey. From earlier cancer detection to treatment guidance and monitoring, we are helping people get the answers they need to make more informed decisions across the cancer continuum.

With a leading portfolio of products for earlier detection and treatment guidance, we help people face the most challenging decisions with confidence.

Our dedication to taking on the impossible fuels everything we do. We are continuously innovating, combining scientific rigor with an open-minded approach to deliver the next big thing.

OUR PURPOSE: We strive to change lives through earlier, smarter answers across the cancer journey.

OUR PROMISE: We relentlessly pursue life-changing answers in cancer that give people the clarity they need to take action, earlier.

Schrödinger, Inc.Corporate Profile:

Our mission: To improve human health and quality of life by transforming the way therapeutics and materials are discovered.

Our physics-based computational platform leverages a deep understanding of physics, chemistry, and predictive modeling to accelerate innovation.

Our platform enables our collaborators to discover high-quality, novel molecules more rapidly, at lower cost, and we believe with a higher likelihood of success compared to traditional methods. We’re also harnessing this platform for our internal drug discovery programs.
We are proud to be leading this digital revolution.

Agenda

Blue Room Investing

I. Business and Operational Updates
II. Blue Room Media Strategy
II. Fund One Launch Update
III. Vietnam Research Team

Impact Updates

I. Liminal Space
II. Madelon 
III. Twin Peaks
IV. Dry Storage

Question

Reflecting back on 2021, what would you like to share about what you learned or what you hope to achieve?
__________

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Friday
December 3, 2021
9:30 AM
__________ _________

BLUE ROOM
Investment Team Bullpen

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THE MARKET
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DONATE

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— 2021 —

STOCK REVIEW 

__________________

Santa's made his list, 

and he’s checked it twice... 

here are the stocks that have been naughty, 

and a few that have been nice.

__________________

Down nearly 40% on the year, Activision has faced numerous allegations and lawsuits in 2021 regarding a toxic workplace culture. The company has been accused of fostering a “frat boy” environment, leading to sexual harassment, discrimination, and retaliation. Numerous executives have left, and the company must now make sweeping changes to improve its work culture, or its future in the fast-growing gaming industry may hang in the balance.

Tesla makes the 'Nice' list this year as the company's stock grew over 50% and crossed the $1 trillion market cap milestone. With revenue growth set to exceed 60% for 2021, the company has had a busy year. Tesla roughly doubled its vehicle production and deliveries while production facilities in Texas and Germany were under development set to open next year. Tesla also expanded its Services segment to include offering auto insurance and electricity.

After Frances Haugen brought Facebook to the attention of congress for chasing profits at the expense of the safety or mental health of users, FB stock has since fallen almost 20%. In the midst of public outrage, the company also changed its name to Meta Platforms Inc., will trade under the ticker MRVS in 2022, and will be leading the charge on development surrounding the metaverse.

Pfizer Inc. is definitely one of the nicest stocks of 2021. One of the leaders in the return to normal life, Pfizer has manufactured over 2.6 billion doses of its COVID-19 vaccine as of the third quarter of 2021. PFE stock has risen 30% over the past year as it has helped to defeat the pandemic. 

Novavax is a biotech company that has been working to provide an alternative COVID-19 vaccine option that is different from the existing mRNA- and viral vector-based options. It is protein-based and more akin to traditional vaccines which may be appealing to some who are vaccine-hesitant. It proved to be 90% effective against symptomatic infection and 100% effective against moderate and severe disease in its Phase III trials. However, the company has delayed its EUA applications to regulatory authorities, causing the stock to behave very erratically, as shown by its $106.11 - $331.68 52-week range. It is certainly a high-risk, potentially high-reward stock.

Apple, literally the largest company on Earth with a market cap of $2.7 trillion dollars, has managed to generate a respectable year-to-date return of 24.9%. That’s nice for shareholders, and if you happen to find one of their products in your stocking this Christmas, that would also be quite nice.

Despite performing well on top-line growth, Pinterest stock is down almost 50% over the past year. Comparing the current TTM revenue with the TTM revenue during the same period last year, the topline has increased over 75%. While revenues surged during the pandemic, the company’s declining global user base raised skepticism on the overall future growth potential for Pinterest. Snapchat, a relative competitor, is also up 73% on a TTM vs. TTM basis with about $1.29 billion more in revenue than Pinterest on a TTM basis.

An investment in Nvidia stock would have delivered a solid return, but the stock truly surged after Facebook and Microsoft announced their intent to enter the “metaverse”. Nvidia themselves have been investing in their Data Center segment to bridge the gap between digital and physical realities. These factors led to a record valuation for the company and an 89% run-up in the past six months alone.

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