Just for fun I thought I’d average the growth rates on my ten companies. Here’s an approximation.
**Alteryx 50%** **MongoDB 49%** **Nutanix 65%** **Okta 60%** **Pivotal 69%** **Pure Storage 40%** **Shop 68%** **Square 51%** **Twilio 61%** **Zscaler 49%**
That’s a pretty extraordinary list. They averaged 56.2% growth last quarter, and most of their revenue is very recurring revenue, which should continue to grow. For more on this I refer you to Wouter’s great post: http://discussion.fool.com/sales-growth-33108276.aspx
Picking the numbers was not all straightforward though:
Mongo had subscription revenue up 53%, but I didn’t remember how much that was of the total, so I stuck with the 49% growth in total revenue.
For Nutanix, I went with the apples-to-apples comparisons (eliminating the zero margin hardware in both sides of the comparison).
Square had Subscription and Service revenue growth of 98%, but I stuck with the overall revenue growth of 51%.
For Twilio I used the growth rate excluding-Uber of course, as that will be what future growth rates will be.
Pure, with it’s outlier “low” growth rate of 40%, was also an outlier in being by far my smallest position at just 2.5% of my portfolio. A more weighted average of the other nine would be 97.5% of my portfolio growing at 58.0%, which turns out to not make much difference.
I hope that this was of interest.