COUP, the very last company in the portfolio to release earnings announced today after hours. They beat on revenue , beat on earnings and overall had a very solid quarter and exhibited slightly accelerated growth. They had their 3rd consecutive quarter of greater than $20m in Free Cash Flow (FCF). The exec team on the call just kept repeating that all engines were full speed ahead and that they hired a lot of quota carrying salespeople in anticipation of continued growth this year and have a very strong pipeline of deals. They saw a lot of companies turning to them to automate, digitize and upgrade their supply chains during the COVID-19 epidemic. They also raised their future guidance nicely. Unlike CRWD they are “only” showing around 50% q/q and y/y revenue growth. Deferred revenue is a nice healthy $244m (on $106m in subscription revenue) and they have 706m in cash in the bank. I am happy with the results, though after hours they are down 4% (after being up just under 4% today during normal trading hours. This is one of my oldest holdings, they are based in San Mateo and I found nothing on the call not to like. I will continue to hold my 4% position.
On a side note, the portfolio as a whole was up a whopping 3.5% with DDOG surging almost 9% today. Great start to the week. I added to FSLY and sold my remaining SMAR on their weak showing and guidance during last weeks call. A tough cut that I hope I don’t regret, but necessary.
Cheers, my friends! -V
