Anaplan (PLAN) is a software provider in the Sales and Operations Planing Systems space. They just had a very good earnings report.
https://seekingalpha.com/pr/17525156-anaplan-announces-first…
https://seekingalpha.com/article/4266781-anaplan-inc-2020-q1…
I looked at them earlier in the year, and passed for these reasons:
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Their subscription revenue and was decreasing.
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Their billings were decreasing.
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Their free cash flow was getting worse. More negative.
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Their Net expansion rate had been decreasing.
I didn’t really understand their competitive advantage and didn’t look any further.
After this quarter, the business is looking much better and I am adding them to my watch list.
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Subscription revenue has risen the last 2 quarters, 45% this quarter.
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Billings has really accelerated, 57% this quarter: last 4 quarters 33->43->54->57
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Much improved Free cash flow (-5 M compared to -16 M the year before).
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Net expansion rate has stabilized at 123%.
I still don’t understand their competitive advantage, but the business is now heading in the right direction so I’m going to learn more about them.
Jim