The fallout from the collapse of Silicon Valley Bank is impacting a range of startups and larger firms including, as we know now from SEC filings, publicly traded companies like Roku, Roblox, Quotient, and others. Roku said in a filing that it had around $487 million held at SVB, representing around 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 distributed across other large financial institutions, it said.
\n\u201cAt this time, the Company does not know to what extent the Company will be able to recover its cash on deposit at SVB,\u201d Roku’s filing stated. \u201cNotwithstanding the closure of SVB, the Company continues to believe that its existing cash and cash equivalents balance and cash flow from operations will be sufficient to meet its working capital, capital expenditures, and material cash requirements from known contractual obligations for the next twelve months and beyond,\u201d it said.
\nRoku had just come off a fourth-quarter earnings beat with $867.1 million in revenue compared with Wall St. expectations of $801.69 million, and a fourth-quarter loss of $1.70 a share versus the $1.72 anticipated. However, the company’s Q1 2023 guidance had still been cautious, citing the current macroeconomic environment. Shares have since dropped by over 3% in after-hours trading. Yesterday, Roku announced a partnership with Best Buy and its advertising business.
\nMeanwhile, gaming platform Roblox said in a filing approximately 5% of its $3 billion cash and securities balance was held at SVB as of Feb. 28, 2023.
\n\u201cThus, regardless of the ultimate outcome and the timing, this situation will have no impact on the day to day operations of the Company,\u201d Roblox assured investors. The company’s stock had just been upgraded by Jefferies analyst Andrew Uerkwitz from a hold to a buy, citing the platform’s ability to continue to grow despite near-term concerns over the economy.
\nThe updates are a further indication of how closely connected the failed bank was with the larger tech industry and the further ramifications its closure could have on brand-name firms.
\nIn addition to Roku and Robox, omnichannel digital marketing firm and Coupons.com owner Quotient also disclosed a smaller impact, noting it held $400,000 at Silicon Valley Bank UK Limited, a UK-based subsidiary of SVB.
\nSpace company Rocket Lab USA said it had $38 million in cash, or 7.9% of its total cash as of Dec. 31, 2022, with SVB.
\nVimeo said in an SEC filing it holds accounts at SVB with a total balance of less than $250,000, which means it’s insured by the FDIC. \u201cThe company believes it does not have exposure to any liquidity concern at SVB. The Company has a well structured and diverse set of banking partners with no bank holding over 25% of its total cash,\u201d Vimeo’s filing noted.
\nOther companies have been posting to social media and disclosing in filings to assure investors they were not exposed.
\nFor example, SoFi announced in a tweet and in a filing that it has no assets with SVB and its only exposure was a \u201cvery small lending facility\u201d that was provided to the company for less than $40 million, which was \u201cunaffected by the FDIC’s receivership of Silicon Valley Bank,\u201d the post read, likely in hope to avoid contagion from this catastrophe.
\nStreamer fuboTV also filed to inform investors it didn’t hold any deposit or have any investments at SVB.
\nSVB was closed down by regulators on Friday and will re-open Monday with the FDIC in charge. It 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.<\/p>\n
Silicon Valley Bank is being shut down today by regulators<\/p>\n