Every week I’ll provide updates on the latest trends in cloud software companies. Follow along to stay up to date! Earnings Revisions - What Might They Look Like? I’ve talked about it before, but the current big “risk” to software companies is earnings revisions (which haven’t happened yet). Many might disagree, but I think there’s an investible framework for where the 10Y will end up by end of year. My current view is it settles ~3.5% +/-, and won’t need to go much higher. Again, many people will disagree with me on this point :)
Jamin - I am curious as to the best matric at our disposal today that we can use to estimate when will negative FCFs turn into positive. Is there anything within your table that you can point to? I love investing in DDOG and on board w/you 100%, but they're waaay beyond the inflection point on FCF and I don't want to pay 15x NTM revs. nCino is also a fast grower, gets a lower multiple (I get way) and has negative FCF which MAY turn positive. Is there a way to get my hands around this "MAY" from looking at your table? Analyst reports that I have access to do not cover nCino :(. Thank you.
Just curious, why do you think Twilio is so undervalued compared to its peers? It is much more established and much better off financially (IMO) than most other companies on this list. Anyone have any idea?
Jamin - I am curious as to the best matric at our disposal today that we can use to estimate when will negative FCFs turn into positive. Is there anything within your table that you can point to? I love investing in DDOG and on board w/you 100%, but they're waaay beyond the inflection point on FCF and I don't want to pay 15x NTM revs. nCino is also a fast grower, gets a lower multiple (I get way) and has negative FCF which MAY turn positive. Is there a way to get my hands around this "MAY" from looking at your table? Analyst reports that I have access to do not cover nCino :(. Thank you.
Just curious, why do you think Twilio is so undervalued compared to its peers? It is much more established and much better off financially (IMO) than most other companies on this list. Anyone have any idea?