“When a public company peaks (sic) your interest, buy a few shares. Right away. Get skin in the game. You’ll learn faster.” - Tom Gardner
Whew! August was a busy month for earnings reports. We also saw a big merger with Square buying Afterpay. I was very happy to see most of my reporting companies nailing the 2nd quarter and guiding higher. These great companies drove my portfolio to return 15.51% in August.
This month, I have reduced positions from 18 to 11, finally achieving my target range of 8-12. Because of this increased concentration, I am raising the top limit of any position from 16% to 24%.
I hope to be able to dig deeper into my companies, now that there are fewer to follow.
Portfolio Return (Monthly)
Jan 6.11%
Feb -0.15%
Mar -5.42%
Apr 1.29%
May 2.14%
Jun 14.47%
Jul -0.84%
Aug 15.51%
YTD 36.8%
Current Portfolio
Ticker Name Aug% July% MTD YTD
UPST Upstart 14.05% 7.39% 89.73% 462.26%
CRWD Crowdstrike 13.40% 10.85% 10.80% 32.66%
DDOG Datadog 13.35% 9.48% 24.48% 39.98%
SHOP Shopify 9.47% 5.73% 1.66% 34.70%
SE Sea Ltd 8.94% 5.01% 22.51% 69.97%
MELI Mercadolibre 8.70% 3.87% 19.04% 11.47%
LSPD Lightspeed 8.17% 3.26% 29.99% 57.95%
ZS Zscaler 8.01% 3.77% 17.99% 39.37%
S SentinelOne 6.20% New 29.65% 50.42%
GLBE Global-E On 5.63% 4.03% 13.38% 225.61%
NET Cloudflare 4.01% 4.60% 1.78% 58.89%
FUBO Fubotv Sold 2.58% 11.94% 4.11%
DOCU Docusign Sold 6.15% -0.60% 33.26%
SNOW Snowflake Sold 7.09% 14.54% 8.16%
CVNA Carvana Sold 3.56% -2.81% 36.95%
SQ Square Sold 4.11% 8.42% 23.17%
ROKU Roku Sold 5.09% -17.72% 6.14%
ABNB Airbnb Sold 4.91% 7.62% 5.58%
FVRR Fiverr Sold 4.80% -27.88% -7.99%
August Portfolio Changes
8/5/21 - Great results from FVRR, but they lowered forward guidance. Out for now.
Started a new position in Sentinel One. Just watching for now.
8/13/21 - Great quarter from ABNB, but I did not like their vague guidance. I’m out for now. Added to LSPD & FUBO.
8/16/21 - Slowing growth for ROKU, out for now. Added to CRWD, DOCU & SHOP.
8/19/21 - Slowing growth for SQ, out for now. Added to MELI.
8/20/21 - I think the CVNA ride might be almost over, Sold it and took advantage of drops in other stocks with higher conviction. UPST, NET & DDOG.
8/30/21 - Sold SNOW on slowing RPO growth and a little on valuation. Only because it is priced very high, I expected perfection and didn’t get it. Definitely keeping it on the watch list. Put the cash into MELI, UPST & SHOP
8/31/21 - Sold DOCU on slowing growth. Sold FUBO on performance. I love the story, but the stock has not followed. I am out to pursue other opportunities. Added to ZS, S, SE, SHOP & LSPD
August Company Notes
Crowdstrike
CrowdStrike Holdings will become a component of the NASDAQ-100 Index, the NASDAQ-100 Equal Weighted Index, and the NASDAQ-100 Technology Index before the market opens on August 26.
Q2 Earnings Report. Revenue of $337.69M (+69.7% Y/Y) beats by $14.16M. Achieves ending ARR of $1.34 billion driven by record net new ARR of $151 million and adds a record 1,660 net new subscription customers in the quarter. Non-GAAP subscription gross margin was 78%, compared to 78% in the second quarter of fiscal 2021. Added 1,660 net new subscription customers in the quarter for a total of 13,080 subscription customers as of July 31, 2021, representing 81% growth year-over-year.
They released this on the last day of August, so I will take a day or so to digest before decking if I need to do anything, but the numbers look good on the surface.
Datadog
Q2 Earnings Report. Revenue of $233.5M (+66.8% Y/Y). For Q3, Datadog guides for revenue of $246-248M (consensus: $226.05M). For the year, the company expects revenue of $938-944M (prior: $880-890M; consensus: $889.6M).
Solid results and raising guidance. That’s what I like to see!
8/17/21 - New product announced, database monitoring. Details here:
https://investors.datadoghq.com/news-releases/news-release-d…
Cloudflare
Q2 Earnings Report. Revenue of $152.4M (+52.8% Y/Y). Just solid. I had trimmed last month back to 4% because of valuation, but happy to let it run from here.
Snowflake
Q2 Earnings Report. Revenue of $272.2M (+104.4% Y/Y) beats by $15.46M. Product revenue of $254.6 million, representing 103% year-over-year growth. Remaining performance obligations of $1.5 billion, representing 122% year-over-year growth. 4,990 total customers. Net revenue retention rate of 169%.
116 customers with trailing 12-month product revenue greater than $1 million.
Incredible numbers, but also incredible valuation. Out for now.
Upstart
Q2 Earnings Report. Revenue of $193.95M beats by $36.2M. FY 2021 Guidance: Revenue of approximately $750 million (vs prior guidance of $600 million) vs. consensus of $601.02 million. Just killing it. The results were just incredible.
Docusign
Roku
Q2 Earnings Report. Revenue of $645.12M (+81.2% Y/Y). Streaming hours declined, due to the economy opening back up. Platform revenues more than doubled to $532.3 million from a year-ago $244.8 million.
The market didn’t like the reduced streaming hours, but they are killing it relative to others. People aren’t going to stop watching TV, but growth is slowing, so I am out for now.
Shopify
8/24/21 - TikTok is partnering with Shopify and will allow users to purchase directly from the e-commerce platform through the TikTok app.
Despite many TikTok influencers promoting clothing and other products, users had previously only been able to purchase goods on the app through paid advertisements. Last October, Shopify partnered with TikTok and introduced new tools for merchants to optimize their TikTok marketing campaigns
Now, Shopify merchants in a pilot program will be able to add a “Shopping” tab to their profiles and provide links to products within posts that direct consumers to the merchant’s Shopify website page.
Kylie Jenner will be one of the first users of the new service and will promote her skin-care brand Kylie Cosmetics. Jenner has 34.9M followers on her personal TikTok page.
TikTok has influenced two-thirds of users to buy something they weren’t planning on, according to a Walnut Unlimited study.
This could be huge for sales!
Square
Square is purchasing Afterpay for $29 billion. This adds the ability to “Buy now, Pay later” (BNPL) to Square. Deal expected to close in 2022.
Q2 Earnings Report. Revenue of $4.68B (+143.8% Y/Y). Q2 gross payment volume increased 29% from the previous quarter as the Seller and Cash App ecosystems continue to gain traction. Bitcoin transactions driving traffic and usage. Square should continue to benefit as small business comes back.
I like this company, but forward growth estimates are slowing down a lot. 2022 is currently projected at 12.6% over 2021. I am out for now.
Fiverr
Q2 Earnings Report. Revenue of $75.26M (+59.7% Y/Y). Great results, but the lowered guidance:
Q3 Guidance: Revenue of $68M-$72M vs. $74.82M consensus. FY21 Guidance: Revenue of $280M-$288M vs. $308.28M consensus
Maybe they turn it around, but not with me waiting. The CEO didn’t give me any confidence either. Out for now.
Mercadolibre
Q2 Earnings Report. Revenue of $1.7B (+93.5% Y/Y). Fantastic all around!
– Net Revenue of $1.7 billion, up 103%
– Net income of $68.2 million, up 22%
– Total Payment Volume (TPV) $17.5 billion, up 72%
– Total payment transactions, 729.9 million, up 80%
– Gross Merchandise Volume, $7 billion, up 46%
– off-platform TPV, $10.3 billion, up 94%
– off-platform payment transactions, 566 million, up 102%
– Users, 75.9 million, up 47%
– Items sold 244.6 million, up 37%
– Items shipped, 230.5 million, up 46%
Lightspeed
Q2 Earnings Report. Revenue of $115.9M (+220.0% Y/Y)
Secondary Offering…dilution of about 6%
Sea
Q2 Earnings Report. Total GAAP revenue was US$2.3 billion, up 158.6% year-on-year. Total gross profit was US$930.9 million, up 363.5% year-on-year.
Fubotv
Q2 Earnings Report. Revenue of $130.9M (+196.4% Y/Y) beats by $9.47M. Advertising revenue grew 281% YoY to $16.5 million. Subscription revenue increased 189% YoY to $114.4 million. Subscribers grew 138% YoY and 15% Q/Q to 681,721. Average Revenue Per User (or ARPU) per month increased 30% YoY to $71.43. Advertising ARPU per month increased 62% YoY to $8.70
8/19/21 - acquired the exclusive rights for Coppa Italia and the exclusive English language rights for Serie A in Canada, making it a premier soccer streaming platform in Canada.
8/23/21 - Global media company Curiosity has entered into a multi-year distribution partnership with streaming television service fuboTV.
Under the agreement, Curiosity’s linear channel, Curiosity Channel, will be available to U.S. subscribers of fuboTV’s Extra package. fuboTV viewers will soon be able to watch Curiosity Stream’s extensive range of titles, including many in 4K, on their favorite nature, science and history topics as well as technology, adventure, travel, space exploration and more.
FUBO seems to be doing all of the right things, but the stock will not move. I am not going to fight the market when other stocks are performing. I’m out for now.
Airbnb
Q2 Earnings Report. Revenue of $1.34B (+300% Y/Y) beats by $70M. Gross booking value of $13.0B vs. a consensus of $11.19B. OUTLOOK: In the near term, we believe revenue and Adjusted EBITDA provide clearer indications of quarterly performance. While the COVID-19 pandemic creates ongoing uncertainty for our future results, we expect Q3 2021 revenue to be our strongest quarterly revenue on record and to deliver the highest Adjusted EBITDA dollars and margin ever.
Great quarter but I don’t like the lack of specific revenue guidance. I’m out for now.
Carvana
Q2 Earnings Report. Revenue of $3.34B (+198.2% Y/Y). Retail units sold totaled 107,815, an increase of 96%.
After selling FVRR, this one is now my oldest holding, getting in June 2020 at the $110 level. I have been losing conviction in this one, so I sold it to add to higher quality names.
Zscaler
Global-E Online Ltd
Q2 Earnings Report. Revenue of $57.28M (+92.9% Y/Y) beats by $9.64M. GMV in the second quarter of 2021 was $326 million, an increase of 95% year over year!
Sentinel One Inc
New position.
Portfolio Rules
- Each position must have the probability of tripling in 1-3 years.
- Growth must be over 40%. Some exceptions if temporary problems but no turnarounds!
- You must believe in the company’s prospects!
- Trim positions over 24%. Trim positions on temporary spikes
- High gross margins are important, but sales growth is more important.
- You can’t buy everything and you don’t need to!
Previous Month Updates
June 2021: https://discussion.fool.com/bama39s-portfolio-at-the-end-of-june…
July 2021: https://discussion.fool.com/bama39s-portfolio-at-the-end-of-july…