I guess my thoughts would be:
- No longer founder-owned. One left operational role for family (medical) issues – understandable; the other was, I suppose, a “time to get a real CEO” move (??), which may also be OK in the grand scheme.
Don’t care about insider ownership. Their leadership has them winning and they seem to be operating great.
- Revenue growth decreasing last 4 quarters
Yes, but that’s why the PS is 7.
- Many other competitors in the marketplace (Blackboard probably being the most well-known)
Yes, but Canvas is destroying Blackboard and everyone. Instructure’s win rates are incredible.
- Increasing income losses QoQ w/ most recent earnings, and guiding for lower than expected (thus, the stock price drop into the high $37/low $38 range whereas before earnings it was in the $47 range)
GAAP Net Loss has hovered around $12m for as many quarters as I can remember. If you want to say they’re not making progress, that’s entirely reasonable. That was Saul’s take, actually. But here’s mine:
**Gross Profit Growth**
Mar 2017: 53%
Jun 2017: 48%
Sep 2017: 42%
Dec 2017: 36%
Mar 2018: 40%
Jun 2018: 31%
**OpEx Growth**
Mar 2017: 25%
Jun 2017: 22%
Sep 2017: 27%
Dec 2017: 22%
Mar 2018: 24%
Jun 2018: 20%
That’s a trend that I think will play out well over time.
Bear