60 episodes

Business Breakdowns is a series of conversations with investors and operators diving deep into a single business. For each business, we explore its history, its business model, its competitive advantages, and what makes it tick. Learn more and stay up to date at www.joincolossus.com

Business Breakdowns Colossus

    • Business
    • 5.0 • 13 Ratings

Business Breakdowns is a series of conversations with investors and operators diving deep into a single business. For each business, we explore its history, its business model, its competitive advantages, and what makes it tick. Learn more and stay up to date at www.joincolossus.com

    Baytex Energy: The Business of Oil & Gas

    Baytex Energy: The Business of Oil & Gas

    This is Matt Reustle and today we’re breaking down Baytex Energy. With oil prices hovering over $100 a barrel, we thought it was a particularly good time to revisit this sector. 
     
    Why Baytex Energy? The 80,000 barrel a day producer certainly isn’t a household name. And with a market cap just north of $3 billion, it’s far from a mega-cap. But Baytex has production in five different operating areas spanning across the US and Canada. Some of those fields are mature, some are emerging. The company has been allocating cash flow between unconventional wells, conventional wells, and debt reduction in recent years. When you take Baytex and everything that’s happening within that business, it offers a perfect lens to view the historically boom and bust industry of oil production. 
     
    To help break down Baytex, I’m joined by oil and gas investor, Josh Young, of Bison Interests. We cover how producers fit into the broader energy ecosystem, the differences between unconventional shale wells versus conventional wells, and how management teams think about capital allocation. Please enjoy this conversation on Baytex Energy. 
     
    For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.
     
    -----
     
    This episode is brought to you by Tegus. Tegus is the new digital hub for market intelligence. The Tegus platform empowers Investors and Corporate Development teams to invest smarter by pairing best-in-class technology with the highest quality user-generated content and data. Find out why a majority of the top firms are using Tegus on a daily basis. If you're ready to go deeper on any company and you appreciate the value of primary research, head to tegus.co/breakdowns for a free trial.
     
    -----
     
    This episode is brought to you by Daloopa. Daloopa streamlines a major pain point for investors. By capturing all of a company's KPIs and adjusted financials into their database - Daloopa makes it easy to quickly update your models for what matters. Daloopa uses AI to find every KPI disclosed - from charts, to text, and even from footnotes of investor presentations. Daloopa updates these KPIs and data points in your existing Excel models in one click, regardless of your source or format. Try Daloopa for free at daloopa.com/Patrick.
     
    -----
     
    Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.
     
    Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.
     
    Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss
     
    Show Notes
    [00:03:19] - [First question] - The journey of producing a barrel of oil and how Baytex fits into the oil production ecosystem
    [00:05:29] - How $100 is dispersed amongst the value chain when a barrel of oil is purchased
    [00:08:03] - A broad overview of Baytex today and its history
    [00:13:05] - The production of a barrel of shale oil and unique characteristics of shale
    [00:16:25] - The main drivers of increased productivity and optimization in oil production
    [00:19:11] - What breaking even looks like today on a barrel of oil
    [00:23:20] - Describing the decline rate of a shale well compared to conventional plays 
    [00:25:22] - Overview of the differences of oil blends and quality coming out of Texas versus Canada
    [00:29:14] - Where the US still imports oil outside of Canada 
    [00:30:51] - A snapshot of what Baytex’s Canadian operations look like
    [00:35:38] - The other major Canadian assets Baytex has 
    [00:38:28] - The heavy oil decline rate of Canadian oil wells compared to US shale wells
    [00:39:59] - What makes Clearwater such an exciting and interesting opportunity for Baytex
    [00:43:30] - Identifying where oil might be and what that process looks like
    [00:47:02] -

    • 1 hr 18 min
    DigitalBridge - Pioneering Digital Infrastructure

    DigitalBridge - Pioneering Digital Infrastructure

    I am Compound248 and today we are pleased to announce and kick-off a Business Breakdowns mini-series focused on Digital Infrastructure. Over the coming months, we will breakdown a handful of companies that are key players in the digital infrastructure asset class. An asset class that undergirds and powers all modern digitally connected experiences. Everything from streaming video to business collaboration tools, to crypto mining, to your everyday internet experience.

    Our hope with this mini series is to give you an understanding of the businesses that underpin our modern lives, giving us an almost magical, ubiquitous connected existence. How is it, for example, that Netflix, based in Seattle, is able to deliver a perfect streaming experience to your phone in the back seat of a New York City taxi cab? Digital Infrastructure powers that experience. 
     
    This inaugural episode of the Digital Infrastructure Business Breakdowns mini series will begin with one of the broadest, most important companies in the industry, DigitalBridge. A company that is part private equity firm, part asset owner, and part infrastructure operator of assets across the digital infrastructure spectrum.
     
    For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.
     
    -----
     
    This episode is brought to you by Tegus. Tegus is the new digital hub for market intelligence. The Tegus platform empowers Investors and Corporate Development teams to invest smarter by pairing best-in-class technology with the highest quality user-generated content and data. Find out why a majority of the top firms are using Tegus on a daily basis. If you're ready to go deeper on any company and you appreciate the value of primary research, head to tegus.co/breakdowns for a free trial.
     
    -----
     
    This episode is brought to you by Daloopa. Daloopa streamlines a major pain point for investors. By capturing all of a company's KPIs and adjusted financials into their database, Daloopa makes it easy to quickly update your models for what matters. Daloopa uses AI to find every KPI disclosed - from charts, to text, and even from footnotes of investor presentations. Daloopa updates these KPIs and data points in your existing Excel models in one click, regardless of your source or format. Try Daloopa for free at daloopa.com/Patrick.
     
    -----
     
    This episode is brought to you in partnership with Roundhill Investments, the advisor to the Roundhill IO Digital Infrastructure ETF – BYTE - which trades on the New York Stock Exchange under the ticker symbol BYTE. The fund tracks the BYTE Index, which measures the performance of 40 leading global digital infrastructure businesses, such as towers and mobile communications, fiber and fixed line connectivity, and data centers. For a prospectus and more information, please visit roundhillinvestments.com/etf/byte.
     
    -----
     
    Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.
     
    Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.
     
    Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss
     
    Show Notes
    [00:04:22] - [First question] - What digital infrastructure means and how it came to be
    [00:09:58] - The nuance of digital infrastructure and how big the addressable opportunity set is
    [00:12:47] - How DigitalBridge became the company it is today 
    [00:19:06] - How he thinks about portioning the fee and value creation economics between shareholders and employees
    [00:23:15] - The differences between their earlier funds and current funds from how the economics split within the team and owners
    [00:25:53] - A look into their balance sheet today between funds and operating assets
    [00:28:39] - How big the digi

    • 59 min
    AppLovin: Monetizing & Marketing Mobile Apps

    AppLovin: Monetizing & Marketing Mobile Apps

    Today we’re breaking down AppLovin. It’s a business you may not recognize but have likely interacted with. Founded in 2012, AppLovin provides a platform for developers to market and monetize their mobile apps. The business also owns some of the most popular mobile games in the world, which they use to feed richer data into their software platform.
     
    To help breakdown the business, I’m joined by its CEO and co-founder, Adam Foroughi. Please enjoy this breakdown of AppLovin.
     
    For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.
     
    -----
     
    This episode is brought to you by Tegus. Tegus is the new digital hub for market intelligence. The Tegus platform empowers Investors and Corporate Development teams to invest smarter by pairing best-in-class technology with the highest quality user-generated content and data. Find out why a majority of the top firms are using Tegus on a daily basis. If you're ready to go deeper on any company and you appreciate the value of primary research, head to  tegus.co/breakdowns for a free trial.
     
    -----
     
    This episode is brought to you by Daloopa. Daloopa streamlines a major pain point for investors. By capturing all of a company's KPIs and adjusted financials into their database, Daloopa makes it easy to quickly update your models for what matters. Daloopa uses AI to find every KPI disclosed - from charts, to text, and even from footnotes of investor presentations. Daloopa updates these KPIs and data points in your existing Excel models in one click, regardless of your source or format. Test Daloopa for free at daloopa.com/Patrick.
     
    -----
     
    Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.
     
    Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.
     
    Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss
     
    Show Notes
    [00:02:41] - [First question] - The first risk taken when creating AppLovin and how it all began
    [00:05:05] - Why was there pushback against games and adtech back in 2012
    [00:07:12] - What it was like in the early days to get the app in front of a customer 
    [00:08:54] - Building a platform and software product versus becoming an advertising agency
    [00:10:47] - The major components of AppLovin and how it works 
    [00:15:21] - The space or areas where most people interact with them and see their work 
    [00:16:26] - What he considers to be the next key chapters after AppLovin’s early days 
    [00:18:25] - How they determine strategy between the app developer side of the business and app ownership
    [00:25:50] - How AppLovin interacts with Apple, Android, and the relationship between products
    [00:27:11] - What he’s learned about the importance of scale in advertising 
    [00:28:58] - The major breakout points in the business that led to where he is today 
    [00:30:22] - Their revenue model and it how it breaks between software and apps
    [00:33:55] - The margins of gaming, its business proposition, and the future value of this side of the franchise
    [00:35:18] - The taxonomy of apps today and how it has changed over time 
    [00:38:53] - His perspective on what defines great digital marketing today 
    [00:40:31] - Walking through the shifts in privacy, targeting, and data as technology changes
    [00:43:13] - His thoughts on emerging platforms as competitive threats and/or opportunities 
    [00:44:58] - How they’ve kept the business nimble and very product-focused on a corporate level
    [00:46:53] - Their concept of meetings and how they’ve learned to run them effectively
    [00:48:37] - The big lessons learned over the years becoming a big capital allocator
    [00:50:24] - The missing pieces in his strategic mission that he st

    • 1 hr 7 min
    Afterpay: Buy Now, Pay Later

    Afterpay: Buy Now, Pay Later

    This is Jesse Pujji and today’s episode is a follow up of last weeks’ Block episode, covering Afterpay the buy-now-pay-later giant. Founded in Sydney Australia in 2015, Afterpay was a rapid success in the buy-now-pay-later market before being acquired by Block for $29bn in 2021. 
     
    To breakdown Afterpay, I am joined by investor Joe Magyer. We cover how buy-now-pay-later compares to traditional credit cards, what differentiates Afterpay from direct peers, and how each player of its ecosystem benefits from its offering. Please enjoy this business breakdown of Afterpay.
     
    For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.
     
    -----
     
    This episode is brought to you by Tegus. Tegus is the new digital hub for market intelligence. The Tegus platform empowers Investors and Corporate Development teams to invest smarter by pairing best-in-class technology with the highest quality user-generated content and data. Find out why a majority of the top firms are using Tegus on a daily basis. If you're ready to go deeper on any company and you appreciate the value of primary research, head to tegus.co/breakdowns for a free trial.
     
    -----
     
    This episode is brought to you by Daloopa. Daloopa streamlines a major pain point for investors. By capturing all of a company's KPIs and adjusted financials into their database, Daloopa makes it easy to quickly update your models for what matters. Daloopa uses AI to find every KPI disclosed - from charts, to text, and even from footnotes of investor presentations. Daloopa updates these KPIs and data points in your existing Excel models in one click, regardless of your source or format. Test Daloopa for free at daloopa.com/Patrick.
     
    -----
     
    Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.
     
    Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.
     
    Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss
     
    Show Notes
    [00:02:52] - [First question] - What is Afterpay and what it does
    [00:07:07] - Size and scope of Afterpay today
    [00:08:27] - The founding story and their growth being such a young company
    [00:12:11] - History of the buy now pay later industry
    [00:13:34] - How their payment models tend to work and how these companies make money
    [00:16:35] - Unit economics, transaction structure and how money is made
    [00:21:44] - How Afterpay drives leads to people via their app and merchant aggregation
    [00:23:39] - An early focus on fashion and expanding beyond their core clientele
    [00:27:13] - Cost of sales and thoughts on taking more credit risk
    [00:31:54] - Losses as a part of cost of sales and interest
    [00:33:48] - Unique things that Afterpay can do given their business model that others can’t
    [00:35:21] - Growth levers for this business 
    [00:38:29] - Other major things they’re spending money on and their acquisition by Block
    [00:44:28] - The competitive landscape in the BNPL industry
    [00:47:54] - Afterpay’s flywheel and how they’ve built it better than others
    [00:49:34] - Whether or not regulation plays a role in this space
    [00:52:21] - What will have gone right in the next five years to ensure Afterpay’s growth curve
    [00:55:01] - What will have happened if Afterpay’s growth doesn’t work out in the future
    [00:56:31] - Whether or not interest rate risk could turn south for them
    [00:57:30] - Lessons for investors, builders, and where to learn more about Afterpay’s story; Buy Now, Pay Later 

    • 1 hr 1 min
    Block: Square, Cash App, and Economic Access

    Block: Square, Cash App, and Economic Access

    This is Jesse Pujji and today we’re breaking down Block – formerly known as Square. This software and financial services business was founded by Jack Dorsey and Jim McKelvey in 2009. It has since expanded from its first product – a payments card reader – into a $75 billion market cap with six businesses that build on the firm’s mission of economic access and empowerment. Those are: Square, Cash App, Afterpay, Tidal, Spiral, and TBD.
     
    To break down Block, I’m joined by payments expert and investor at TDM Growth Partners, Hamish Corlett. We cover the common threads that have enabled Block to organically build two major ecosystems in Square and Cash App, how the recent Afterpay acquisition can strengthen the connective tissue between those businesses, and the competitive frontiers Block faces. Please enjoy this business breakdown of Block.
     
    For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.
     
    -----
     
    This episode is brought to you by Visible Alpha. The team at Visible Alpha built a platform to analyze consensus data and financial metrics on over 6,000 publicly traded companies. Rather than having to dig through models one by one, Visible Alpha extracts data from every line item across sell-side models so you can better understand expectations on metrics beyond just revenue and earnings. Try Visible Alpha for free by visiting visiblealpha.com/breakdowns
     
    -----
     
    This episode is brought to you by Scribe. Scribe is the trusted transcription provider for the business and investing community. Scribe is designed to accurately transcribe messy, real-world audio and is unique in that it’s optimized for the complexities of enterprise audio, such as company and product names, currencies, accents and numbers. Visit kensho.com/breakdowns to learn more and unlock your free trial.
     
    -----
     
    Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.
     
    Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.
     
    Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss
     
    Show Notes
    [00:02:52] - [First question] - What is Block and what it does as a business
    [00:04:58] - How is Block organized, their scale, and how many merchants they serve

    [00:08:03] - Their founding story and the insight that lead to creating Block

    [00:10:49] - Major milestones in the last decade after releasing their card reader

    [00:13:47] - The story behind their Cash App and what it is

    [00:18:59] - What Afterpay is and how it creates connections for merchants

    [00:21:23] - Overview of the payment ecosystem and where Block fits into it
    [00:25:03] - The P&L of Square, its blended gross margin, and customer acquisition strategy

    [00:30:42] - How Cash App makes money and its P&L

    [00:35:54] - The balance sheet of Block and how they’ve stood out in a competitive space

    [00:38:31] - The ways their product organization allows them to move at a rapid pace
    [00:40:30] - How they avoid fraud that’s seemingly everywhere in financial service businesses

    [00:42:01] - His thoughts on the competitive environment and how they’re succeeding

    [00:47:56] - Highlights of M&A and how they reconcile them with their overall strategy
    [00:54:44] - Their view on Bitcoin and crypto and how it plays into Block’s business

    [00:59:09] - Things that could happen in a macro environment to aid their future growth

    [01:01:30] - What could go wrong in the future and the macro environment’s impact

    [01:03:49] - Lessons for builders and investors when studying Block’s story

    [01:06:20] - Places to go to learn more about Block

    • 1 hr 7 min
    McKinsey & Company: The First Management Consultants

    McKinsey & Company: The First Management Consultants

    This is Jesse Pujji and today we’re breaking down McKinsey & Company, the world’s pre-eminent management consulting firm. Founded in the thick of the Industrial Revolution, McKinsey set about professionalizing the way businesses were managed. An accountant by trade, James McKinsey, took inspiration from a range of well-established professions like engineers, doctors, and lawyers to create a new category. 
     
    Today, some 100 years later, management consultants are entrenched in every part of the global economy and McKinsey continues to lead the field. To break down the business, I’m joined by Romeen Sheth, a McKinsey alum and the current President of Metasys Technologies. Please enjoy this business breakdown of McKinsey & Company.
     
    For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.
     
    -----
     
    This episode is brought to you by Visible Alpha. The team at Visible Alpha built a platform to analyze consensus data and financial metrics on over 6,000 publicly traded companies. Rather than having to dig through models one by one, Visible Alpha extracts data from every line item across sell-side models so you can better understand expectations on metrics beyond just revenue and earnings. Try Visible Alpha for free by visiting visiblealpha.com/breakdowns
     
    -----
     
    This episode is brought to you by Scribe. Scribe is the trusted transcription provider for the business and investing community. Scribe is designed to accurately transcribe messy, real-world audio and is unique in that it’s optimized for the complexities of enterprise audio, such as company and product names, currencies, accents and numbers. Visit kensho.com/breakdowns to learn more and unlock your free trial.
     
    -----
     
    Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.
     
    Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.
     
    Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss
     
    Show Notes
    [00:02:35] - [First question] - What is McKinsey & Company and what management consulting looks like
    [00:04:52] - Their project-based model and what’s being bought and sold when McKinsey makes a sale
    [00:07:36] - The scale of the business and how profitable it is
    [00:08:58] - How many projects McKinsey is running and how big of an opportunity management consulting is

    [00:10:37] - McKinsey’s famous ownership model and how it works

    [00:12:49] - The history of McKinsey, who started it, and how it has evolved in modern times

    [00:19:01] - How the firm has changed in the post-Bower era

    [00:22:12] - McKinsey’s biggest competitors, their dynamics of practice groups, and vertical projects
    [00:25:46] - How a CEO or top level manager decides which management consulting firm to do business with

    [00:27:38] - The overview of a normal project for McKinsey, what they sell, and costs associated with it

    [00:33:07] - The process of marketing and sales and their talent flywheel

    [00:36:07] - The traditional side of their sales and marketing and the McKinsey Quarterly

    [00:37:44] - How someone can pitch business to McKinsey and their sales process

    [00:39:47] - What makes the organization special and unique from a team or work perspective

    [00:41:01] - Their talent model and how they find and develop their talent 
    [00:45:14] - How their staffing model is unique and how they tie feedback into staffing

    [00:51:06] - Examples of the scandals that have happened and why

    [00:55:24] - The biggest growth levers of the business looking forward

    [01:02:03] - Things that could happen in a macro environment to aid McKinsey’s future

    [01:03:52] - What could happen to make McKinsey a shell of its former self 
    [01:05:

    • 1 hr 9 min

Customer Reviews

5.0 out of 5
13 Ratings

13 Ratings

alex129473 ,

Great business insights!

Love this! I’ve been waiting for a podcast to go this deep on business models for a while.

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