I was looking for $195m in revenue, and they hit $194m. It’s a rounding error, but $195m wasn’t a super high bar.
Their DBNRR was strong.
Stock-based compensation is also ticking up. Operating margin was down, due on an uptick in R&D.
So going into the conference call, I was a bit “it was fine”.
However, my main takeaway from the conference call was traction in the zero-trust, security of networks side of things. This was one of the things I was always waiting for with Elastic, Fastly etc., who have the products theoretically, but never seemed to have the customers.
“A F500 customer signed a $250k contract for >10k zero-trust seats”
“F500 Pharma 3 year $750k network security deal”
“Innovative payment startup 3yr $1.5m for network security products”.
Similarly, the fact that they have a backbone network which can avoid the public internet altogether (for corporate networks for example) appears a truely valuable asset. Workers seems to have traction, the zero-trust side of things seems to be growing well…
I’m unclear whether this is “better” than ZScaler for example, but if you can route completely separately from the public internet, over a backbone network thats completely within your control…?
And their mission “future of the corporate network” and “building a better internet” seem to be timely.
So on one hand, the numbers weren’t amazing. On the other hand, they seem a company of a better future. Maybe the narrative leads the numbers?