Ben’s Portfolio update end of May 2025

SlowAndFast · May 31, 2025, 10:16pm

Ben’s Portfolio update end of May 2025

Returns and portfolio holdings:

	Portfolio	Notes
2020	63.6%	Since May 12, 2020, when I started this portfolio with over 40 companies, mostly holding large cap tech & FAANG, but also some high-growth SaaS.
2021	13.1%	Discovered Saul’s board in February 2021 and started concentrating to 16 companies through December 2021.
2022	-60.7%	(-15.6% Jul-Dec) Concentrated a bit more through July 2022 from which point I started posting my monthly updates on Saul’s board, holding about 12 or fewer positions.
2023	77.8%	First full year of Saul-style investing
2024	31.7%

2025	YTD	Month
Jan	9.1%	9.1%
Feb	5.0%	-3.7%
Mar	-10.4%	-14.7%
Apr	-2.4%	8.8%
May	19.6%	22.6%

These are my current positions:

	May 2025	Apr 2025	First buy*
Cloudflare	19.5%	17.4%	11/2/2020
Nvidia	18.0%	17.8%	5/13/2020

Snowflake	13.4%	12.7%	2/8/2021
Crowdstrike	12.3%	13.7%	5/13/2020
Axon	10.4%	10.5%	4/2/2024
Datadog	8.4%	9.0%	5/13/2020

Samsara	6.0%	6.3%	1/8/2024
Monday	5.8%	6.8%	9/13/2021
Zscaler	4.3%	4.3%	3/4/2021

TradeDesk	1.8%	1.6%	5/13/2020

*held through today

Company comments

Datadog:

Key insights:

Q1 revenue below my expectation, but strong Q2 guide and 1.3% FY guide raise.
Acquired Eppo and Metaplane. Revenue from those not included in guides, but I estimate quarterly contribution of $5M -$15M starting in Q2.
RPO growth stayed on trend with cRPO growth accelerating to 30% YoY, faster than current revenue growth of 24.6% YoY.
Land-and-expand motion on track, with strong large customer growth, stable net retention and solid multi-product customer expansion progress.
Operating and net margins contracted this Q2 as a result from gross margin headwinds and increased R&D spend. Gross margins declined by 1.4% due to cloud hosting costs rising more quickly than they expected in Q1, as they supported large growth spikes from some of their largest customers, which isn’t a bad thing of course.

Datadog reported Fiscal Q1 2025 on 5/6/25. Revenue was $762M (3.2% QoQ, 24.6% YoY), below my expectation of $767M (4% QoQ, 25.5% YoY), but beating their Q1 guide by 3.1% and adding $24M sequential net new revenue, (up from $22M last Q1). Given that, I was surprised to see a very strong Q2 guide of $789M at the midpoint versus my expected $779M. My first thought here was that the new guide included revenue from two new acquisitions, Metaplane and Eppo.

Datadog acquired Eppo for $220M on May 5, 2025, with the goal of creating an end-to-end product analytics solution that combines observability with experimentation and feature flagging, helping “increase the velocity of releases, while also lowering risk by helping customers to release and validate features in a controlled manner.” Datadog also acquired Metaplane for an undisclosed amount on April 23, 2025. This acquisition is aimed at accelerating Datadog’s expansion into data observability, building on its existing products like Data Jobs Monitoring and Data Streams Monitoring. Metaplane uses machine learning-powered monitoring and column-level lineage to help prevent, detect, and resolve data quality issues.

Since both acquisitions closed after Q1 ended, there wasn’t any inorganic growth from those acquisitions in Q1. But of course the question is how much in-organic growth can we expect going forward? This question is especially interesting in light of the strong Q2 guide and 1.3% FY guide raise.

One of the analysts asked the question “It sounds like $10 million of expenses for Eppo and Metaplane. Curious if your guidance includes any impact from a revenue perspective for those two.” And the reply was “Well, for the second half of the year, we did not change the revenue guidance. So I would say, net-net, when you put everything together, we did not include it .”

I estimate Metaplane’s revenue to be in the range of $10M annually. In March 2024, Metaplane announced a $13.8 million Series A funding round and mentioned achieving “6x growth in the past year.” This suggests their revenue was significantly lower than $13.8 million in the year prior to that announcement, indicating a rapidly growing, but still relatively early-stage revenue base. At that time, they also reported tripling their customer base to over 100 companies in 2023. Similarly, with a price tag of $220M I would estimate Eppo’s revenue to be in the range of $10 - $50M. So the combined quarterly in-organic revenue would be $5M - $15M, certainly a substantial figure.

So if they really didn’t include that in their guides, I see some revenue upside here. But of course acquisitions don’t necessarily immediately translate into revenue, depending on how well the integration goes. So for now, I would say this is just something to watch out for. Related to this, we’ll probably have to subtract around 100 customers (or more) from the Q2 number they’ll report if we want to get an estimate of the organic customer growth.

Looking further into secondary growth metrics, I was happy to see that RPO grew by 1.8% QoQ, after being down 6% sequentially last Q1. As a result YoY RPO growth accelerated meaningfully to 33.5%, up from 23.4% in Q4 and 25.5% in Q3. This was also partly a result of RPO duration being flat again YoY after being down in the last two quarters. So overall, correcting for duration RPO growth stayed on trend and I would expect it to be around 30-32% YoY in Q2. While RPO fluctuates also with duration, making it hard to judge, cRPO growth was up again, at 30% YoY, from 25% in Q4 and 27.5% in Q3. So cRPO growth is not only accelerating, but growing faster than revenue, which is a good sign.

Land-and-expand was also on track: While total customer adds were a little lower than I expected (500 adds, down from 746 adds last Q1), large customer growth was stronger than I had expected, adding 160 new customers, up from 150 last Q1. At the same time we saw continued multi-product adoption progress with 2+, 4+, 6+ and 8+ products cohort percentages of 83% (83% in Q4), 51% (50% in Q4), 28% (26% in Q4) and 13% (12% in Q4). Datadog’s net retention rate remained in the high 110%’s, similar to last quarter.

Lastly, let’s talk about profitability. This quarter we saw contracting operating and net margins, which is not what I wanted to see. This was mostly a result of gross margin declining from 82% to 80%, which is a significant step down. However, there was a good reason for this: “While gross margin remained in the range that we have expected over the long term, our cloud hosting costs rose more quickly than we expected in Q1, as we supported large growth spikes from some of our largest customers (…) we are also focused on executing projects to improve our cloud cost efficiency and expect to realize savings throughout the rest of the year.” At the same time, most of the profitability margin decline can be attributed to increased R&D expenses, which were 29.6% of revenue, up from 27.9% last Q1. For comparison S&M expenses stayed at 23.4% of revenue, just as last Q1. Finally, FCF margin increased to 32.2%, up from 30.6% last Q1.

Overview of how Datadog performed versus my expectations:

Revenue expectation: $767M (4% QoQ, 25.5% YoY), implying a 3.8% beat.
→ $762M (3.2% QoQ, 24.6% YoY), a 3.1% beat.
Q2 new revenue guide: $779M (1.6% QoQ, 21% YoY) which I would interpret as $808M (5.4% QoQ, 25% YoY) expecting YoY growth will stay at 25% while QoQ growth accelerates.
→ $789M (3.6% QoQ, 22.3% YoY), which I now interpret as $809M (6.2% QoQ, 25.3% YoY), implying a 2.5% beat.
My Q1 revenue expectation implies about $29M raw sequential revenue increase (up from $22M last Q1).
→ $24M.
I would like to see RPO flat QoQ at $2.2b to $2.3b (32% YoY growth).
→ RPO $2.31b (33.5% YoY), with RPO duration flat YoY and cRPO 30% YoY.
I would like to see QoQ customer growth around 2.5% (~750 new) and for the $100k+ cohort, around 4% QoQ (~144 new).
→ All: 1.7% QoQ (500 new), $100k+: 4.4% QoQ (160 new).
I would like to see continued multi-product adoption progress with 2+, 4+, 6+ and 8+ products cohort percentages of 84%, 50%, 27% and 13%.
→ 83%, 51%, 28%, 13%.
I would like to see NRR similar to Q4 and management commentary that NRR is stable or going up from Q4.
→ high 110%’s, “our trailing 12-month net revenue retention percentage was in the high 110%s in Q1, similar to last quarter”.
I would like to see stable profitability margins from Q4.
→ OM & NM contracted due to temporary gross margin headwinds and increased spend in R&D, but FCF margin expanded YoY.
Thoughts from previous Q: Ben’s Portfolio update end of February 2025

Monday:

Key insights:

Strong quarter with regard to revenue growth and land-and-expand.
Q2 guide weaker than I had expected and FY guide raised only 0.4% due to more conservatism as a result of increased macro uncertainties.
Strong operational leverage led to significant profitability margin expansion.

Monday reported Fiscal Q1 2025 on 5/12/25. That was an interesting one; They basically met or exceeded all my expectations besides one: the Q2 guide, which was significantly below my expectation. After exactly meeting my Q1 revenue expectation of $282M (5.3% QoQ, 30.1% YoY), I would have expected a Q2 guide of $298M, but it was only $293M. Not much of a difference? Well, we have been talking a lot about Monday being stuck in growing sequential net new revenue and this $5M difference makes a big difference when you have sequential net new revenue of around $14M. So what do we make of this? First, let’s have a look if any of the secondary growth metrics, especially the forward looking ones raise any yellow or red flags (spoiler alert: they don’t!)

Customer growth massively exceeded my expectations in all cohorts:

1352 customer adds (I expected 1000; they had 454 adds in Q4 and 1827 adds last Q1),
243 $50k+ customer adds (I expected 200; they had 294 adds in Q4 and 196 adds last Q1) and
121 $100k+ customer adds (I expected 80; they had 127 adds in Q4 and 78 adds last Q1).
Product account growth massively exceeded my expectations in Dev and Service and roughly met my expectation in CRM:
3711 CRM account adds (I expected 3886; they had 3012 adds in Q4 and 3658 adds last Q1),
833 Dev account adds (I expected 400; they had 283 adds in Q4 and 642 adds last Q1) and
316 Service account adds (I expected 227; they had 214 adds in Q4, which was up from 150 in Q3).

NRR met my expectations in the two lower ARR cohorts and exceeded my expectations in the higher ARR cohorts:

NRR all: 110% → 111% → 112% → 112%.
NRR 10+: 114% → 114% → 115% → 115%.
NRR $50k+: 114% → 115% → 115% → 116%.
NRR $100k+: 114% → 115% → 116% → 117%.

In addition, we saw great progress in their push up-market:

Total ARR from 10+ customers: 78% → 79% → 79% → 80%.
Total ARR from $50k+ customers: 33% → 34% → 36% → 37%.
Total ARR from $100k+ customers: 21% → 22% → 24% → 24%.

So, with all these great numbers, why would they not guide stronger? Well, lots of analysts on the call had the same question and the answer is summarized best in this quote: “And the reason not everything is reflected in the guidance because we did take a more conservative approach with regards to our expectations for the end of the year because of the macroeconomic situation and the uncertainties that still exist.”

They did, by the way, raise their FY guide by 0.4%. Of course, we can’t predict the future and management’s concern for macro impacts shouldn’t be brushed away. But what we are looking at here is a company that just reported an excellent quarter with a more conservative guide. How conservative the guide will turn out to have been is to be seen.

Finally, Monday delivered some impressive results with regard to profitability. They typically have a front-loaded FY with major spending in Q1. As a result, operating expenses as a percentage of revenue have been significantly higher in Q1s than in Q4s. This Q1 was no different. Operating expenses increased to 75.8% from 74.2% in Q4. Yet, they were down from 79.8% last Q1. As a result, operating expenses grew only 23.5% YoY, while revenues grew 30.1% YoY, displaying nice operational leverage. This operational leverage resulted in significant margin expansion, where operating margin expanded to 14.4%, up from 9.9% last Q1 and net margin expanded to 20.7%, up from 14.6% last Q1. Free cash flow was also very strong, growing 51% QoQ to $110M, 38.8% of revenue.

Overview of how Monday performed versus my expectations:

Revenue expectation: $282M (5.4% QoQ, 30% YoY), implying a 2.7% beat.
→ $282M (5.3% QoQ, 30.1% YoY), a 2.6% beat.
Q2 new revenue guide: $298M (5.5% QoQ, 26% YoY) which I would interpret as $305M (8% QoQ, 29% YoY), expecting QoQ growth will accelerate.
→ $293M (3.8% QoQ, 24.1% YoY).
I would like to see raw sequential revenue increase around $14.4M. (It then should be above $20M for Q2, Q3 and Q4).
→ $14.3M, but updated guides no longer suggest Q2 to Q4 above $20M, now more like $18M - $20M, still a leg up from $14M.
I would like to see more than 60200 customers with 10+ users (>1000 net adds), around 3400 customers in the $50k+ cohort (200 net adds) and around 1287 customers in the $100k+ cohort (80 net adds).
→ 60566 customers with 10+ users (1352 net adds), 3444 customers in the $50k+ cohort (243 net adds) and 1328 customers in the $100k+ cohort (121 net adds).
I would like to see CRM accounts growth around 14% QoQ (to 31642, 3886 net adds).
→ 13.4% QoQ to 31467 customers (3711 net adds).
I would like to see Dev accounts growth around 11.7% QoQ (to 3833, 400 net adds).
→ 24.3% QoQ to 4266 customers (833 net adds).
I would like to see Service accounts growth around 60% QoQ (to 605, 227 net adds).
→ 84% QoQ to 694 customers (316 net adds).
I would like to see that NRR greater or equal to 112%, NRR10+ greater or equal to 115%, NRR50k greater or equal to 115% and NRR100k greater or equal to 116%.
→ 112%, 115%, 116%, 117%.
I would like to see operating margin around 12.4% (~$35M operating income), net margin around 18.4% and FCF margin around 32% with FCF of around $90M.
→ OM 14.4% ($41M), NM 20.7% ($58M), FCFM 38.8% (110M).
Thoughts from previous Q: Ben’s Portfolio update end of February 2025

Axon:

Key insights:

Q1 revenue was weak, but might have to do more with timing as FY guide was raised by 1.9%.
Secondary future growth metrics point to revenue growth durability.
Re-grouping of segment revenue makes sense and doesn’t hide underlying weaknesses - to the contrary, the old Software & Sensors category did extremely well growing 44.7% YoY, up from 35.1% last Q1 and 31.6% in Q4.
Solid profitability with continued margin expansion in FCF and EBITDA.

Axon reported Fiscal Q1 2025 on 5/7/25. On the surface, I thought this was an OK quarter. Especially revenue and ARR were lower than I had expected, while RPO and NRR met my expectations and adjusted EBITDA exceeded my expectation.

Revenue was $604M (5.0% QoQ, 31.3% YoY) versus my expectation of $615M (7% QoQ, 33.7% YoY). This is quite a bit less than I had expected and would normally translate into a significantly reduced FY outlook, but fortunately Axon also raised their FY guide by 1.9%. This suggests to me that there might be more strength in the coming quarters as they’ll have to catch up somewhat. For example, beating their current FY guide by 1.6% would translate to around 32% YoY growth for FY25, just a notch down from 33% in FY24.

Looking into segments they regrouped their reporting metrics from “Taser” and “Software & Sensors” to "Connected Devices” and “Software & Services”. Normally I don’t like it when companies change their reporting in such a way that might disguise some underlaying problems, but in this case I agree that the new categories make more sense and they have been actually transparent enough so that we can still calculate the old metrics (at least in this report). The old Software & Sensor category was actually doing extremely well this quarter, growing 44.7% YoY, up from 35.1% last Q1 and 31.6% in Q4. So certainly no reason to hide that. They also reported TASER revenue separately, which I found pretty weak this quarter. It only grew 9.4% YoY (to $195.5M), down from 33.1% last Q1 and 37.1% in Q4. One thing to keep in mind here though is that revenue can be very lumpy, (with Axon in general), when compared to some of the other companies we hold in our portfolio; and Q3 and Q4 have been exceptionally strong with Taser revenue. While there was no commentary on the call about this drop I would ascribe it to timing and the fact that the previous two quarters have been very strong, so more a regression to the mean rather than some underlying issues.

ARR was ok, growing 34% YoY, ahead of revenue growth and signaling revenue growth durability. Future contracted bookings was as I had expected, at $9.9b, growing 41.4% YoY and their net retention rate remained at an outstanding 123%.

With regard to profitability, this was again a business as usual quarter, where FCF seasonally dropped QoQ to close to zero (it was negative in the previous two Q1s, leading to over 5% margin expansion). Net margin stayed at 19%, just as last Q1 and EBITDA margin expanded again to a new 4-year record of 25.7%, up from 23.7% last Q1 and 24.6% in Q4.

Overview of how Axon performed versus my expectations:

Revenue expectation: $615M (7% QoQ, 33.7% YoY), assuming similar QoQ growth as last Q1.
→ $604M (5.0% QoQ, 31.3% YoY).
Q2 revenue expectation: $673M (9.5% QoQ, 34% YoY), assuming similar QoQ growth as last Q2. Note: they don’t give quarterly guides besides for Q4s.
→ updated expectation is $661M (9.5% QoQ, 31.3% YoY).
I would like to see around $120M net new ARR.
→ net new ARR $103M (ARR grew 33.8% YoY).
I would like to see RPO around $10b.
→ $9.9b.
I would like to see NRR around 123%.
→ 123%.
I would like to see adjusted EBITDA around $145M.
→ $155M.
Thoughts from previous Q: Ben’s Portfolio update end of March 2025

Cloudflare:

Key insights:

Q1 revenue and Q2 guide stronger than I had expected and showing revenue growth durability at 27% YoY level into Q2.
Maintained FY revenue guide (they typically don’t raise FY guides), also supporting revenue growth durability thesis for FY25.
Strong RPO growth (39% YoY) with expanding contract durations and cRPO grew 30.9% YoY, growing faster than revenue, which only grew 26.5% YoY. cRPO accelerated YoY for the third consecutive quarter (26.2% → 29.6% → 29.9% → 30.9%).
NRR stayed at 111% while churn rates improved and they saw reduced pricing pressure from competition.
Continued its strong growth of customers, accelerated customer growth for the 8th consecutive quarter, to 27.2% in 1Q25, from 13.5% in 1Q23. Meanwhile, large customer growth was weak QoQ, but mostly due to timing, a two-day shorter quarter and a very strong Q4.
Closed the largest deal in their history: “a five year $130 million pool of funds contract primarily for our workers developer platform”.
Operating income lower than I had expected, but due to increased investing in the business, compounded by gross margin headwinds, which I expect to turn into tailwinds in the coming quarters.
Operating expenses actually grew less than revenue at 21% YoY, while revenue grew 26.5% YoY, showing operational leverage and OM expanded slightly YoY.
FCF margin expanded 1.6% YoY while this was the first Q1 where free cash flow grew QoQ instead of contracted (it went up 10.7% QoQ) since they became FCF profitable.
Despite increasing CapEx (driven by significant GPU investments) from around $30M in-between 2Q22 and 2Q24 to $50M, $73M, and $86M in the last three quarters, Cloudflare consistently grew free cash flow, demonstrating disciplined spending, strong business growth, and operational efficiency.

Cloudflare reported Fiscal Q1 2025 on 5/8/25. Revenue came in at $479M (4.2% QoQ, 26.5% YoY) versus my expectation of $478M (3.9% QoQ, 26.3% YoY), so we are off to a good start. Their Q2 guide was better than I had expected, at $500.5M (4.5% QoQ, 24.8% YoY), which I now interpret as $510M (6.2% QoQ, 26.9% YoY), implying a 1.7% beat (their 8-quarter average beat was 1.8%). So this would confirm my hypothesis of revenue growth durability into Q2. They didn’t raise their FY guide, but this isn’t too surprising since their average FY guide raise in the last 8 quarters was close to zero, so I wouldn’t read too much into that. Let’s better evaluate some of the updated secondary growth metrics we got this Q1:

RPO came in strong, growing by 10.5% QoQ to $1.864b, which corresponds to 38.8% YoY. At the same time cRPO, as a percentage of RPO dropped to 66% (from 70%), indicating longer deals in the new RPO figure. cRPO grew 4.2% QoQ to $1.23b and up 30.9% YoY, growing faster than revenue, which only grew 26.5% YoY. Also, cRPO accelerated YoY for the third consecutive quarter (26.2% → 29.6% → 29.9% → 30.9%), showing continuing support of my growth durability thesis, if not slight acceleration.

In terms of expanding with existing customers, their NRR stayed at 111%, just like in Q4, but is up from 110% in Q3. “These results reinforce our belief that DNR is stabilizing at these levels , despite continued near-term headwinds from increased traction with pool of fund contracts , which can impact the shape of revenue recognition.” Also, “Our churn rates improved in the quarter. We are seeing stabilization in our customers’ businesses and reduced pricing pressure from competition.” So it seems their expand motion is chugging along. How about landing new customers?

Cloudflare continued its strong growth of customers, adding 13105 customers in Q1. With that YoY customer growth has accelerated for the 8th consecutive quarter, to 27.2% in 1Q25, from 13.5% in 1Q23. I have not seen a B2B company growing customers at this pace from a large base of now 250000 customers. On the other had the net adds in $100k+ customers was significantly weaker than I had expected: They only added 30 new customers to this cohort versus my expectation of about 140. So, what gives? An analyst had the same question and I am giving the full response below:

Q: “But the net adds on the 100,000 side was a lot skinnier (…) Any changes in like go-to-market strategy that caused that, or is that just kind of timing of, kind of when deals are coming in?”

A: “a couple of small things came together. (…) it’s mostly timing and then also we had actually a really strong quarter last quarter with the 100,000 adds (…) So first and more importantly, what we didn’t see was we didn’t see increased churn or contraction. Actually just the opposite. DNR for that cohort even improved by 1-percentage point. I think instead we just saw very – fewer customers who spent less than $100,000 graduating in the larger customer cohort. And then the quarter had also two days less , which means you recognized less ratable revenue in that quarter. And that hurt a customer group that was just at the threshold of moving in there. So even the two days missing played a role. So a lot of small things coming together and impacting the count, but nothing that disturbs the long trend trajectory we see here.”

Also, seasonally Q1 was always on the lower side with large customer adds, so I would expect them to catch up somewhat when they report Q2. Cloudflare also hit a new customer milestone as “A leading technology company signed a five year $130 million pool of funds contract primarily for our workers developer platform. This marks the largest deal in Cloudflare’s history .”

Finally, let’s talk about profitability. Operating income was $58.4M, down from $68.8M in Q4. This was surprising because they beat their guide by only 1.8%, while previous beats have always been 16% or more. So, what does that mean? Well, in the Q&A they basically just said that they think there is opportunity to invest and they have done this in the first quarter. They also maintained their FY guide for operating income, which is encouraging. Looking at their financials, operating expenses actually grew less than revenue at 21% YoY, while revenue grew 26.5% YoY, which is a good thing. The reason, however, why the operating margin contracted QoQ was that gross profit increased by $12.5M while operating expenses increased by $24M. On the bright side, we have now likely hit the bottom territory for gross margin (as I have talked about in my last Cloudflare recap) and I would expect it to go up again in coming quarters turning a profitability headwind into a profitability tailwind:

Also, at least YoY, operating margin actually expanded slightly to 11.7%, from 11.2%.

Lastly, free cash flow margin was 11% up from 9.4% last Q1, while I had expected it to be flat from last Q1. It is also noteworthy that this was the first Q1 since they became FCF profitable where free cash flow grew QoQ instead of contract (it went up 10.7% QoQ). From a Capex point of view this is also great to see as Cloudflare has been investing heavily in GPUs in the last three quarters; Before that, Cloudflare has been consistently spending around $30M in Capex since 2Q22 and the last three quarters have been $50M → $73M → 86M. So the fact they were able also consistently grow free cash flow in the last three quarters (from which Capex is subtracted), speaks for their disciplined spending approach and strong underlying business growth and operational efficiency, as

Revenue growth is outpacing the increase in CapEx: Even with higher investments in infrastructure, Cloudflare’s core business is generating enough revenue to not only cover these rising costs but also expand its free cash flow. This suggests healthy demand for their services.
Operational efficiency is improving: They are managing their operating expenses effectively, allowing more of their revenue to flow down to the free cash flow line, despite increased capital expenditures. This could be due to economies of scale as their network expands or better utilization of their existing infrastructure.
Investments are productive: The rising CapEx iscontributing to the expansion of their network and services (e.g., AI inference capacity), which in turn drives customer acquisition and revenue growth, ultimately benefiting free cash flow. Cloudflare’s management has indeed noted that they’ve been able to manage network expansion without significant changes to their CapEx plan, which points to efficient use of capital.

Overview of how Cloudflare performed versus my expectations:

Revenue expectation: $478M (3.9% QoQ, 26.3% YoY), implying a 2% beat.
→ $479M (4.2% QoQ, 26.5% YoY), a 2.3% beat.
Q2 new revenue guide: $497M (4% QoQ, 24% YoY) which I would interpret as $507M (6% QoQ, 26% YoY) expecting QoQ growth to seasonally accelerate, but stay at Q1’s YoY growth rate.
→ $500.5M (4.5% QoQ, 24.8% YoY), which I now interpret as $510M (6.2% QoQ, 26.9% YoY), implying a 1.7% beat.
I would like to see NRR around 112%.
→ 111%.
I would like to see total customer growth around 4% QoQ (~9500 net adds).
→ 5.5% QoQ, 13105 net adds.
I would like to see large customer growth around 4% QoQ (~140 net adds).
→ 0.9% QoQ, 30 net adds, but $1M+ customers grew 48% YoY, up from 46.6% YoY in Q4, including a first $130M 5-year deal.
I would like to see RPO grow around 7% QoQ to $1.8b.
→ RPO grew 10.5% QoQ, 38.8% YoY to $1.864b
I would like to see cRPO grow around 5.5% QoQ to $1.24b.
→ cRPO dropped to 66% of RPO (from 70%), indicating longer deals in new RPO figure, cRPO grew 4.2% QoQ to $1.23b and up 30.9% YoY, growing faster than revenue; accelerated YoY for the third consecutive quarter.
I would like to see operating income around $63M.
→ Operating income was $58.4M, a 12.2% margin, down from 15.4% last Q1.
I would like to see a FCF margin around 9.5%.
→ FCF grew to $52.9M, a 11% margin, up from 9.4% last Q1.
Thoughts from previous Q: Ben’s Portfolio update end of February 2025

Wrap up

So far I have been very pleased with the performance of our companies this earnings season. There are just few more to go, so looking forward to digging into their reports!

I am wishing you all a great June!
Ben

Past recaps

Topic		Replies	Views
Ben’s Portfolio update end of April 2025 Saul’s Investing Discussions	0	2189	May 4, 2025
Ben’s Portfolio update end of May 2024 Saul’s Investing Discussions	0	2775	May 31, 2024
Ben’s Portfolio update end of November 2024 Saul’s Investing Discussions	0	2076	December 5, 2024
Ben’s Portfolio update end of August 2024 Saul’s Investing Discussions	1	2691	September 8, 2024
Ben’s Portfolio update end of July 2024 Saul’s Investing Discussions	0	2062	August 1, 2024

Ben’s Portfolio update end of May 2025

Ben’s Portfolio update end of May 2025

Returns and portfolio holdings:

These are my current positions:

Company comments

Datadog:

Monday:

Axon:

Cloudflare:

Wrap up

Past recaps

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