BVP Cloud Index end of May 2018

The BVP Cloud Index is a market cap weighted index that tracks the activity of the
leading public cloud companies. There are currently 50 companies in the index.

  • The Index is up 32% YTD (from 12/29/2017 to 5/31/2018).

  • The Index is up 552.2% (28.8% annualized) since 1/1/2011.

  • 60% of the gains in the Index have come in just the last 17 months.

  • The Index is currently trading at an average 9.2X (EV/2018 Rev).

  • Was 8.5X last month. Previous all-time high was 8.0X in 2015.

  • In early 2016, the Index lost 17% in one day. It lost 35% in six weeks. Multiple was 3.7X.

The BVP Cloud Index is maintained by Bessemer Venture Partners. You can find the Index here:

https://www.bvp.com/strategy/cloud-computing/index

Ears

Note: I track this index for purposes other than my own investing. I share it here because I know
several of you are heavily invested in some of these stocks and thought you might be interested.

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Thanks ears

I’ve bookmarked this as it’s a fantastic screener. I like to sort by efficiency scores and then drill down the ratios to see what hidden gems might be out there.

A company that stuck out to me is Everbridge. It stuck out because I have used the software before for emergency notifications to a workforce of over 15,000 people. At the time, it wasn’t as user friendly as I thought it could be.

Reading the last couple of conference calls, looking at the gross retention of 116%, it seems perhaps they’ve not only created a sticky product…but they are starting to move from “we will handle mass notification of threats to employees — (ie wildfires, earthquakes, active shooter, etc — most of which require annual drills and a software to notify)” to a “and we will help you start to organize and respond to events.”

The last was always the challenge. You use one system to communicate and another to gather a common operating picture.

Anyhow - curious if anyone else uses this index in a similar way to screen for value.

Adding to watch list, and continuing my weekend deep dive into AAXN who I recently initiated a small position in and am looking to push a full position. I’m quickly becoming extremely bullish in this company. Will follow up. Data moat + emerging market + patent moat + no competition + SaaS

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