NET investor presentation

Today, NET is conducting an investor presentation where management is providing detailed answers to questions about guidance and their sales team. I strongly encourage everyone to watch the replay. In brief, the sales organization reorganization is not a recent development. It started in early 2022 with the hiring of the new president of revenue. Announcement of layoffs had nothing to do with guidance but instead an effort by management to be super transparent and to explain what they are doing to make improvements in their org that will be net positive in the future (control what we can control). Lowered guidance is purely driven by lengthening of sales cycles and there is nothing they can do about it. (you can only push your customers so much before they start hating you).

Overall, I continue to feel very positive about NET.

I think it is important that we understand that a) economy has slowed down dramatically impacting every sector b) some parts of the economy have been hit particularly hard (tech, crypto etc) c) different companies have different exposure to different sectors of the economy (some have higher tech exposure than others - NET, ZI for example have higher exposure). I think this explains 90% of performance in companies this board invests in.