FoolishJeff September Portfolio Update

YTD return - 49.4% (As of Sept 30th)

Portfolio Breakdown

UPST - 23.6%
DDOG - 16.9%
CRWD - 12.5%
SE - 11.8%
LSPD - 9.9%
ZS - 9.2%
MNDY - 5.8%
NET - 2.2%
Cash - 1.9%

Watchlist - Docebo, Global-E, Affirm, Docu, Roku

YTD Returns

UPST - 559%
DDOG - 50%
CRWD - 19%
SE - 62%
NET - 55%
LSPD - 33%
ZS - 28%
ZI - 32%
MNDY - 84%

Summary: It was an up and down month. I was up over 60% for the year after the third week of September but its been rough going the last week and a half or so. The short seller attack on Lightspeed didn’t help as the stock has dropped more than 20% over the last week. Like a few others, I did hold Global-E for a few days but sold out after thinking it over more. I am starting to like Docebo a lot and may initiate a position sometime this week. It’s SaaS, it keeps expanding it’s TAM, and is riding the WFH pivot.

UPST (Upstart) - Upstart was up nearly 40% for the month of Sept. I had to do a bit of trimming to keep it under 25%. I do feel a bit uncomfortable with such a large position but it’s firing on all cylinders and I can’t force myself to cut further until after the next earnings call. They had 3 major press releases, all very positive

  1. Official release of a Spanish language version of its platform.…

  1. Water and Power Community Credit Union (WPCCU), a Los Angeles County premier credit union, announced it has partnered with Upstart to provide personal loans to better reach new members in the communities it serves.…

WPCCU is based in LA, so the timing of the Spanish language version of its platform could not have been better in my view.

  1. WSFS Bank, the primary subsidiary of WSFS Financial Corporation (Nasdaq: WSFS), announced it has launched a digital personal loans product powered by Upstart, (NASDAQ: UPST), a leading artificial intelligence (AI) lending platform.…

This was great news as WSFS has ~27B in assets, so it’s no small fry.

CRWD (CrowdStrike) - Not a lot of news. George Kurtz did present at the Deutsche Bank 2021 Technology Conference.…

DDOG (Datadog)- It was a quiet month. CFO David Obstler did present at the Jefferies Virtual Sofware Conference.…

NET (Cloudflare) - I continued to trim and used some of the $$ to add to my Lightspeed position as the short attack looks to be nonsense. There was a long list of press releases that show innovation but I’m not sure any of them will jumpstart Cloudflare’s growth over the short to medium term.

DOCU (Docusign) - The slowing growth lead me to sell out completely. I’ll be happy to get back in once CLM starts to move the needle.

SE (Sea Limited) - A quiet month. In the second quarter, Shopee was the most downloaded mobile app store globally, and Free Fire continued to rank as the top-grossing mobile title, according to App Annie. Management raised its full-year guidance and calls for e-commerce revenue to increase by 121.5% over 2020. Digital entertainment bookings are expected to grow 44% year over year. I added slightly to my position.

ROKU - I sold out completely after I reported on 5 or 6 red flags from last month. I’ll keep it on the watchlist in case in can surprise in the next report.

LSPD (Lightspeed) - The short seller attack has been sufficiently covered on this board. It amounted to a bunch of nonsense about metrics from years back. I think in the long run we’ll all thank Spruce Point Capital for this great buying opportunity.

ZS (Zscaler)- They reported a very nice quarter on 9/9. I posted a summary to the board.…

-Revenue up 57% year-over-year to $197.1 million (up 12% sequentially)

-Calculated billings grows 70% year-over-year to $332.2 million

-Deferred revenue grows 71% year-over-year to $630.6 million

-GAAP net loss of $81.0 million compared to GAAP net loss of $49.5 million on a year-over-year basis

-Non-GAAP net income of $20.3 million compared to non-GAAP net income of $12.0 million on a year-over-year basis (up 69.2%)

-Cash provided by operations was $44.7 million, or 23% of revenue, compared to $31.6 million, or 25% of
revenue, in the fourth quarter of fiscal 2020. FCF was $27.7 million, or 14% of revenue, compared to $10.9 million, or 9% of revenue, in the fourth quarter of fiscal 2020.

-DBNRR was 128% compared to 126% last quarter and 120% a year ago

-GM of 80% (declined by 1% qoq and improved by 1% YoY)

-Strong Customer Growth - 202 customers with ARR greater than $1 million, up 87% from 108 in the
prior year. 1,480 customers with ARR greater than $100,000, vs 973
customers last year. “Our new customer adds accelerated in FY21. We organically added approximately 1,000 new logos in FY21 excluding acquisitions and we ended the year with over 5,600 customers.”

Financial Outlook:

-Total revenue of $210 million to $212 million (represents 47-49% revenue growth)

-Non-GAAP income from operations of $18 million to $19 million

-Non-GAAP net income per share of approximately $0.12, assuming approximately 148 million common shares

I was happy to add to my position as it looks to be a high 50% grower over the coming quarters.

ZI (ZoomInfo) - ZoomInfo bought data orchestration firm RingLead

-RingLead is a comprehensive data quality management tool that automates sales, marketing, and revenue operations throughout the customer life cycle.
-RingLead’s subscribers benefit from its SaaS, a user-friendly, intuitive, and codeless interface that allows them to acquire and merge data from multiple third-party providers.
-The acquisition of RingLead tightens the connection between the intelligence and engagement layers within the ZoomInfo platform, allowing clients to convert additional leads into revenue more efficiently.
-The acquisition is not expected to have a material impact on the full year 2021 financial results for ZoomInfo.

-ZoomInfo announced it will expand its global headquarters in Vancouver, Washington.
-ZoomInfo (NASDAQ:ZI) will move into a four-story office at Terminal 1 in 2025.…

MNDY ( - I’m really excited about this company as it reported 94% growth last quarter and Enterprise Customer growth of 226%. I may add more if the price continues to fall. Other than presenting at Piper Sandler and Jefferies conferences, it was a quiet month.


Previous Posts……

No update in March (I had the COVID)……

No update in June (I was moving)……