From what I can see, the growth story for Talend remains intact. This is yet another beneficiary of the mass migration to the cloud, and they have partnered well with Amazon Web Services and others to help enterprise customers transform and store their incoming business data in data warehouses and databases. We used Talend heavily in a previous company I worked at, and it became a critical part of our business.
For 1Q 2018 they reported revenue of $46.8M (+42% Y/Y) which beat expectations by $1.21M. EPS of -$0.18 was in line with estimates. Here’s the quarterly revenue history.
**Revenues (millions)**
1Q 2Q 3Q 4Q
2016 25.4 27.4 30.5
2017 32.9 35.8 38.4 41.5
2018 46.8 49.3(est)
And here’s the Y/Y growth in revenues, each quarter.
**Y/Y Revenue Growth**
1Q 2Q 3Q 4Q
2016 39% 40% 45%
2017 44% 41% 40% 36%
2018 42% 39%(est)
So they continue to deliver 40%+ revenue growth, and guided 39% growth for next quarter. For the full year, they are guiding 37% growth. So I think they are being conservative, in order to give them a better shot at beating the estimate.
The 6% drop after hours might seem like an over-reaction, until you realize that they were up almost 5% today. On a valuation basis, they are trading at roughly 10x the trailing year sales, and 8x projected sales for 2018. Seems reasonable for a such a consistent grower.
Talend will continue to be a long term holding for me. Thanks Saul, and everyone who contributes here, for helping boost my portfolio so much this year. Good luck to you all.
rdutt