Investors: After listening to the conference call and reading the earnings release, I feel that ZS is dropping the ball, at least temporarily. There are several areas of concern which have caused me to sell half of my position today. I don’t do this often so I’m letting you know in advance of the close of market in 20 minutes. I’m considering what to do with the remaining shares, but have used some of the funds today to add to my COUP position based on the acceleration they have shown this quarter. I will try to provide a more comprehensive analysis on ZS later. Shame to see them stumble and they may still recover with their amazing technology, but it will take some time, IMHO. ESTC and SMAR earnings out today AMC.
MDB: Just reading the “Q” and I am honing in on three things (beside the otherwise rock solid results and the beat we all expected) announced by MDB today that might get investors excited:
Atlas revenue growth of 185% and now up to 40% of overall revenue. Like to see that, of course. And worth noting that Atlas recognizes much less revenue upfront, so that bodes well in the future for revenue growth and implies less recognized in this quarter revenue number. Combine that with a lot of new, larger customers.
Big announcement of their Alibaba and China partnership. They have historically had challenges selling into China because they didn’t have a partner. Now they have the biggest partner in China. This could be a game changer.
Announcement of Frank D’Souza, Founder of Cognizant, to the board of MDB can’t hurt.
Up 9% after hours. Tomorrow should be a nice day for MDB!
