Bessemer Ventures Top 15 For Revenue Growth

Investing Strategies Abandoned Arctic Outpost #13
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Revenue Growth:

  1. Blend Labs: 308.6%

  2. Bill.com: 189.5

  3. SentinelOne: 171.0

  4. Snowflake: 101.5

  5. Gitlab: 94.4

  6. Monday.com: 90.5

  7. Datadog: 83.7

  8. CS Disco: 76.2

  9. Confluent: 70.5

10 Asana: 70.3

11 Amplitude: 64.3

12 Crowdstrike: 63.5

13 OKTA: 63.2

14 Zscaler 62.7

15 ZoomInfo: 59.1

All the Best,

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Blend labs???

Sunday’s a good day for some research.

Thanks Champ.

–Stay Free–

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Note: The Bessemer Venture Partner Cloud Index contains 76 companies. (Yes…76)

Ok… so NET is not in the top 15 BVP Cloud Index: But they do come in at #19 with Revenue Growth clocking in at 53.7%

Despite redundancy I note - four companies of interest ranking above NET in the index for Revenue Growth include:

#9 CFLT with 70.5%

#11 AMPL with 64.3%

#16 PATH with 58.4

All the Best,

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https://twitter.com/NBAonTNT/status/540896204495011841

My cousin, nosegrowin, went from 6’2" at age 15 to 6’10" at age 21.

All it did was make it more obvious how goofy and uncoordinated he was.

Regards,
Ears

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Just who and what is a Bessemer Cloud Index. Bessemer invests in Start-Ups and their index has tracked the evolution/revolution of cloud companies for 13 years. So - how they doing?

https://cloudindex.bvp.com/

Overall Index Performance:

EMCLOUD +727.5%
NASDAQ +269.5%
S&P 500 +161.4%
Dow Jones +122.9

Through a meticulous, thoughtful and exhausting 12 minute deep dive exploration of the results noted above - it has become obvious, even to myself, that the Bessemer Cloud Index (EMCLOUD) has taken the other key averages to the proverbial woodshed.

EMCLOUD is Red Hot…
Your Index Ain’t Doodley Sqat

EMCLOUD - EMCLOUD Thats the Play
Crushing Indexes Every Day

Ok… so Bessemer provides us with a pretty good overview of those Cloud companies that are knocking it out of the park - and, more to the point, since we are High Growth Investors (HGIs) Doesn’t it make since to latch on to - or at least consider what is what and which is which among the players. Look at it this way: Bessemer is just like one of those recruiting services that evaluates and ranks high school players and a great many Universities have Athletic Departments that subscribe to those services and their player rankings. The good news here is that Bessemer is among the best ranking services for Cloud companies. SWEET!

So lets just move along.

Bessemer ranks the Cloud Players across a number of metrics that High Growth Investing Sharpies (HGIS) like us can use to determine who we want to recruit for our portfolio rosters - and its absolutely free!

Special Note 1: Brother Ears figured this out a lot sooner than most and his discussion board is all over this stuff. You can find his top notch Cloud investing board here:

https://discussion.fool.com/Messages.asp?mid=35064941&bid=12…

So the purpose of this particular post is to rank the TOP 15 High Flying Revenue Growers by the BVP Efficiency Score. This score is a way to determine something or other and seems pretty important to Bessemer. Here is how they describe it:

“Bessemer Efficiency Score is a measure of capital efficiency that tracks net new ARR against net burn for a given period. This metric showcases the incremental ARR dollars added for every dollar of burn, effectively measuring a company’s spending habits.”

Now what I take this to mean - is that if the members of the company board all decided to go out and buy matching Mercedes Recreational Vans (these are really cool by the way) with company funds - it would somehow show up here. Anyway - I want to add the Efficiency score to my current portfolio roster.

Note: In Efficiency Scores evidently higher is better.

  1. BILL: 185.4…rank on index 2

  2. SentinelOne: 118.2…rank on index 3

  3. DDOG: 104.9…rank on index 5

  4. MNDY: 91.8…rank on index 7

  5. ZS: 83.9…rank on index 9

  6. NET: 50.1…rank on index 24

Special Note 2: For anyone keeping score please note that so far NET - is not only the slowest High Revenue Growth grower but now also the worst of the portfolio for Efficiency Score. Maybe their board members are rolling the dice in Monte Carlo - or something like that.

All the Best,

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Ears:

Your story own your cousin NoseG reminds me of Mayhue Finkel who was the big dufus center on our basketball team. Nice guy never spoke a word he didn’t have to and was as gentle as they come. Big husky farm kid with more muscles than brains. Went on to be a lawyer I think. Anyway…

We practiced in a small basement gym beneath the school and while we practiced on one side the girls cheerleaders practiced on a stage across the way. We had a kid named Wallace who was always trying to play tricks on everyone and one day he snuck up behind Mayhue and pulled his practice shorts down - embarrassed the guy a great deal. This soft spoken farm boy giant proceeded to beat the poo out of Wallace and might still be beating on his if the coach hadn’t pulled him off.

All the Best,

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So now I want to take a look at the Market Caps for the portfolio and compare those metrics to the Revenue Growth numbers:

Market Cap to Revenue Growth:

  1. DDOG: $44.6B with Revenue Growth of 83.7%

  2. NET: $32.7B with Revenue Growth of 53.7%

  3. ZS: $31.6B with Revenue Growth of 62.7%

  4. BILL: $21.2B with Revenue Growth of 189.5%

  5. SentinelOne: $9.8B with Revenue Growth of 171.0%

  6. MNDY: $6.0B with Revenue Growth of 90.5%.

Take Aways:

  • NET has the second highest Market Cap with the lowest Revenue Growth

  • MNDY might be a bargain

  • S might need a higher contract.

  • Starting a position in BILL could be a really good investment

All the Best,

3 Likes
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Now I want to season this process with Bessemer’s EV/Forward Revenue numbers.

  1. NET.: Market Cap $32.7B…Revenue Growth 53.7%…EV/Forward Revenue 30.2x

  2. BILL: Market Cap $21.2B…Revenue Growth 189.5%…EV/Forward Revenue 25.5x

  3. DDOG: Market Cap $44.6B…Revenue Growth 83.7%…EV/Forward Revenue 24.9x

  4. Zs…: Market Cap $31.6B…Revenue Growth 62.7%…EV/Forward Revenue 22.5x

  5. S…: Market Cap. $9.8B…Revenue Growth 171.0%…EV/Forward Revenue 22.1x

  6. MNDY: Market Cap…$6.0B…Revenue Growth 90.5%…EV/Forward Revenue 9.3x

Take Aways

  • NET has the second highest Market Cap, the lowest Revenue Growth Rate and the Highest EV/FRev

  • MNDY has the lowest Market Cap, the 3rd best Rev Gro rate, and the lowest EV/FRev

  • S has the second highest Rev Gro, but the second lowest Market Cap. Needs a good report to maintain.

All the Best,

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