PAYC and IT spending

I usually only lurk here for lack of contribution but I think this might help the owners of SaaS and other software/cloud based companies.

Cross posted from another board…the contributors were commiserating about which software company was dinged the most…

<<I’ll offer ESTC -27%; AYX -37%; and ZS more than 50% from highs. According to one analyst/blogger I read and subscribe to, Bert Hochfeld, this all started at 26-July with hedge funds and other institutions in a risk-off mode. Some worry that IT spending is coming down with squeezed growth.

Not worried about PAYC. They have competition but it seems to me they’re the best of the bunch. Ex ADP exec in the saddle who is a driver for customer need satisfaction.

I cover industrial companies tied to manufacturing and energy: 3M, Proto Labs, and TechnipFMC for the Fool(Tickers MMM, PRLB, FTI). Their 3Q reports just came out yesterday and today. All the calls were today…not finished with 3M, the biggest but in EVERY CASE, even though revenue and profits languish, they are NOT lessening spending on IT. Why?

From Mike Roman CEO at 3M, in prepared remarks, my paraphrase:

Productivity actions are working…example…

In Europe, Middle East and Africa (EMEA) and Canada, regions where they’ve deployed new business processes “end-to-end” we’ve seen…

• better margins

• better use of data analytics

• lower inventory

• enhanced customer service >>

Long all the above except FTI, and noted at my own project pre bid meeting this week with competitors, one large energy E&C company estimator logged into his company system and the ZScaler logo appeared.