Are you considering to adding S back to your portfolio? Their latest ER seemed good relative to others. In your last ER recap for S you were concerned about the softer guides and poor profitability – but now the guide 50% is strong compared to other company guides we have seen and the profitability is still moving in the right direction.
2) Growth will likely go something like 92, 78, 52 the next couple quarters as it laps the acquisition.
3) Management missed its net new ARR guide huge two quarters ago, floated 50% FY24 ARR growth last quarter, then locked in 47% this quarter. I'm not convinced S is going to close its cash flow/profits gap before growth slows to an unacceptable rate.
Still too many uncertainties for me to feel comfortable about the next 2-3 years. Happy to hear a different interpretation.
Thanks Stocknovice!
Are you considering to adding S back to your portfolio? Their latest ER seemed good relative to others. In your last ER recap for S you were concerned about the softer guides and poor profitability – but now the guide 50% is strong compared to other company guides we have seen and the profitability is still moving in the right direction.
Best regards
Still hesitant for 3 reasons:
1) Cash flows and profits still lag.
2) Growth will likely go something like 92, 78, 52 the next couple quarters as it laps the acquisition.
3) Management missed its net new ARR guide huge two quarters ago, floated 50% FY24 ARR growth last quarter, then locked in 47% this quarter. I'm not convinced S is going to close its cash flow/profits gap before growth slows to an unacceptable rate.
Still too many uncertainties for me to feel comfortable about the next 2-3 years. Happy to hear a different interpretation.
Thanks Joe!