Paid DLC for Satisfactory Coming (speculation) Up

A core part of why we belive the market has put a modest valuation on Coffee Stain, despite its very strong quality characteristics, is that pipeline visibility has been low. Investors, more or less, have to trust the company to deliver growth without knowing how. It’s like being blind folded in the car; you might get to the goal, but you don't know how or which route you took. As we wrote in this comment, we expect that to change in the coming “Big Break Showcase” on September 29.

Additional content is being dropped before the showcase release, and Coffee Stain recently released a teaser video strongly indicating that Satisfactory will have a paid DLC coming up. From what we can tell, it will cost $10. The comments on the YouTube video are outstandingly positive about seeing paid DLC and new content for this beloved game.

Satisfactory has sold around 12-15 million lifetime copies and generated SEK 1.1 billion in lifetime net sales. A new DLC will likely be a major revenue event at high incremental margins. The exact timing? We do not know, but it will likely be near-term. We continue to own Coffee Stain in our portfolio.

Disclaimer

Not investment advice; for informational purposes only. The company discussed, Coffee Stain, is a holding in our public portfolio.

Lind Research