11 Comments

Ouch on that $ETSY sell.. Great write-up as usual!

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Jun 4, 2021Liked by TheStockNovice

What did you think of the docu earnings? I loved about everything except it seems CLM is further away than I hoped. The CFO in the CC noted "So, I would expect it to be a few years before it’s really a meaningful contributor. And when you think about kind of the results that we posted the last few quarters, they are primarily driven by eSignature. And just given the scale and the growth rate kind of on the core piece, it’s going to take a while for Agreement Cloud, even if it’s growing quickly within to really have be a meaningful contributor from a top-line perspective."

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I loved it too, and so did the market apparently. I agree that CLM is further away than I hoped and was a bit disappointed to hear the CFO since the CEO hinted differently during April's analyst day.

What surprised me - and maybe what I didn't give them enough credit for - is just how much runway appears to be left for eSignature, especially internationally. A record 96K total customers and another 11K enterprise clients is no joke. International growth has also accelerated each of the last 5 quarters to 84% and is now 21% of total revenue. If nothing else, it looks like DocuSign is killing the WFH narrative. People simply aren't going back to paper. I bumped my allocation slightly already and will likely add some more this week.

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Jun 6, 2021Liked by TheStockNovice

Yeah, they showed they are more than just a covid stock! I was pleasantly surprised as well. Springer said yesterday the market penetration is "well less than 10%. His bullish comments and attitude along with the strong numbers were great. Totally agree international is key to the growth story and it got a lot of focus on the call. Hopefully they can sign some big customers in the next year or so to give CLM some real momentum.

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Jun 2, 2021Liked by TheStockNovice

Great stuff, as always. Don't keep us in suspense....what did you think of Zoom earnings? Still on the team?

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Revenue came in about $20M less than I was expecting, and the guide looks like things only slow from there. I have to admit I mismanaged this one. I was all set to sell last Q when it popped after hours, but it cratered the very next day and I anchored on the $400+ price hoping it would bounce back.

It didn't take long reading the release to know ZM is no longer one of my personal best ideas even with the eye-popping profits. I'm now at 9 positions and 5%+ cash. Lesson learned (again).

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So....what is going to replace ZM? and....reaction to the CRWD earnings?

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Don't know yet on ZM. I'm thinking about rebuying ZScaler but might just stay at 9.

I thought CRWD held serve this quarter, and the market seemed disappointed with the earnings. I'd already trimmed it a couple times when it hit 30% of our portfolio but was content carrying 28%+ into earnings since our cost basis is in the low-70's and CRWD had grown to such a large position all by itself over the last year. Being honest, I expected a little more this Q after the nice surprises by Palo Alto and ZScaler. Oh well. I trimmed throughout Friday and it now sits at 18.5%. I've bumped it back into my DDOG/NET conviction tier. I'd expect those three to jockey around going forward.

I was actually invited into a conversation about CRWD's earnings here if you're interested in more thoughts: https://www.youtube.com/watch?v=3-7hvCRThcA&feature=youtu.be

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Jun 6, 2021Liked by TheStockNovice

Thanks so much. I enjoyed the video and greatly appreciate all that you do. Kibo/Joe B.

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These writeups never disappoint

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Good, detailed overview, thanks!

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