What does Elastic (ESTC) do???
Elastic markets a suite of products that help companies capture, analyze, and visualize data. Elastic’s ability to cull information that could otherwise be overlooked to produce better insights has led to its being labeled the Google of corporate search. Basically…it is google search on steroids by 100x with the ability to search, make sense, discover and interpret data from a plethora of other sources including the internet, intranet, other private databases and many other sources.
For your weekend reading leisure. With the advent of ASC 606, RPO is a new and unique metric in SaaS companies and worth understanding. The following is a great article worth reading to grasp how it is used…have a great Labor Day weekend. It snuck up on me this year!!
https://www.fool.com/investing/2018/06/26/a-new-metric-provides-insight-into-splunks-busines.aspx
Tons going on this week…portfolio up 2% today as a whole….both MDB and SMAR released earnings after the market closed. I will be reviewing the releases later tonight…and CRWD had an exciting partnership announcement yesterday. ZS earnings on deck tomorrow.
https://seekingalpha.com/news/3496968-proofpoint-crowdstrike
Sorry, my last text was in error…ZS changed their release date to 9/10/19.
CRWD is actually tomorrow 9/5 after the close of the market It will be even more interesting given the recent announcement. Yesterday I increased my position from 2% to about 4% of my portfolio. Their revenue growth every quarter for the past 6 has been North of 100%. They are already approaching annual revenues of half a billion dollars. 147% dollar based retention rate. 119% q/q growth in customers (now over 3000) and rising margins both gross and net?!? I expect them to release revenue growth over 100% again tomorrow. This is the fastest growing of all the stocks in the portfolio right now. The proof will be in the numbers tomorrow.
MDB: absolutely no disappointment with their quarterly earnings. Read the MDB earnings call transcript last night. They had a couple big deals come in at the end of Q2 that were not expected until Q3, so they seem to be using that to “sandbag” their forward guidance (which they raised) and are also claiming tough comparables the next two quarters, but with this kind of revenue & customer growth…duh!! They will always have this challenge and said the same thing last quarter. Question then is if this is where they start to slow down, to decelerate that growth. The Atlas growth doesn’t seem to be…rev growth up over 240% q/q and now makes up 35% of it product suite. Stock is getting hit today hard and down 10% today as traders take profits. It May be a buying opportunity if I didn’t own a large enough stake already. I am considering selling the volatility with some short term put options…but otherwise standing firm. (Note this is a bullish, positive options trade based on high volatility and belief the stock will go up). There are several analysts upgrades today on the earnings beat and raised guidance, for what that is worth. Again, I would likely buy some on this news if I did not already have more than 10% position.
User comment: Ought Bought at 145 Fingers crossed
Victor: Nice timing! You almost caught the bottom today and it rebounded $5 back to $150 before market close. Congrats!
