Has anyone looked in depth at this company? I did some very limited research and it seems to fit the mold of some others followed on this board. I’m not that impressed with their revenue growth though. Gross margins are impressive and it appears they are on the road to profitability next year. Any thoughts?
Has anyone looked in depth at this company? I did some very limited research and it seems to fit the mold of some others followed on this board. I’m not that impressed with their revenue growth though. Gross margins are impressive and it appears they are on the road to profitability next year. Any thoughts?
Hi Vamtneer,
If you expect to get any result when you bring a new company to the board, it takes more than a stock symbol. You told us nothing at all about the company:
What does it do?
Does it have any moat?
What are its revenues?
How fast did they grow last year? Last quarter?
What are their “impressive” gross margins? Are they rising or falling?
How much are they losing? What percent are losses of revenue?
Are losses rising dollar-wise or falling?
What is their dollar based retention rate?
etc
etc
etc
Tell us about it. Don’t just say “Here’s a stock symbol. Will someone else do the work for me?”
Try again,
Saul
22 Likes
Tell us about it. Don’t just say “Here’s a stock symbol. Will someone else do the work for me?”
And VAMtneer,
Even if you don’t feel like you know how to review a company, I encourage you to try. If you get even one board veteran interested in the company, they will add to your information and you will learn a TON. It’s a very worthwhile endeavor.
Bear
15 Likes
My apologies Saul. First, let me say I’ve been mostly a lurker on this board for a little over a year now. I can’t describe what an incredibly valuable investing tool this is. For the most part I don’t feel worthy enough to add to most of the discussions on here. What most of these tech companies do is far over my head although I do understand numbers as I’m a CPA by trade. I will dig into the details of BOX and bring some meat to this board for discussion. I’m somewhat of a novice so please take it easy on me. Again, thank you and the rest of the contributing members of the board for the incredible investing education that I’m getting. My portfolio thanks you too! Again, I apologize, the last thing I want to do is offend anyone on this board.
Mark
21 Likes
Hi Mark, We’re glad to have you on the board. Sorry if I may have seemed a bit harsh. Don’t worry about not understanding what the tech is all about. Tell us about the numbers. Believe me, I don’t know what the tech is all about either. I have trouble working my mobile phone.
Seriously. Take Nutanix for example, one of my largest positions. “Hyper converged infrastructure” …Really? Who knows what that is? But what I know is that Revenue, apples-to-apples, was up over 60%, software billings were up 67%, adjusted gross margin last quarter was 7% better than last year, gross profit dollars were up 67%, adjusted net loss was 12% of revenue, down from 22% of revenue, deferred revenue was up 62%, operating cash flow was positive $13 million, up from a loss of $16 million, free cash flow was a loss of $1 million compared to a loss of $29 million, etc. Introduced three new innovative products (that I don’t understand either, but it tells me that they’re not standing still).
That’s what I need to know about a company, not what hyper converged infrastructure is. Hope that helps, and looking forward to your write-up of BOX.
Best,
Saul
21 Likes