I find that it is much more profitable to buy winners instead of trying to find turnarounds, absent the turnaround being part of a FUD (fear uncertainty doubt) event.
I agree with turnarounds. Here are my thoughts…
FY 2018 they had great growth and could have continued the land grab with high SGA. They looked at the numbers and found they can have less churn, and better sales for the SGA $$ if they focus on the enterprise customers or the customers have that potential, which are existing ones. It is not like they are going to abandon the new logo, but emphasis is on existing clients, who has potential to grow.
So like any change in strategy the Q1 got hit by change of direction and had negative growth. They had no need to change that strategy, could have continued in the old path and will be growing nicely but they felt that is not going to take them to profitability.
We need to see how it is going to play out. Every company had to make a switch from going after growth to profitability. And it is not going to be without bumps.
Let us see what happens.