Wow! C’mon Saul, surely you’re better than a literal ad-hominem attack. I’ve had that name since the Fool started (like the 90’s?) and I don’t think I’ve ever had the guts to short sell but I can see how the name could make you think that. I’ll admit to being frugal though. Not sure where you read into my comments that I don’t like how you invest here considering I own many of the companies discussed here.
Are my numbers wrong? Even though another poster pointed out that this happened last year (the efficiencies and their effect on revenue), I would counter that they still guided to double digit growth QoQ the last time so the last batch of efficiencies didn’t seem to concern them. They literally admitted during the conference call that it surprised them :
Mike Scarpelli :
I would say the quarter actually came in pretty much where we were expecting, slightly off from consumption in January, but not a huge amount. I will say and I called it out, we were surprised at an enhancement we rolled out the profound impact of it. It was only out for a few weeks in January and had a $2 million impact.
All I was trying to point out was that the trajectory isn’t the same as before (some one time holiday effects but also some permanent) and management seems to be telling us these changes are more of a headwind than before(short term). From the CC
Frank Slootman: Yes. Let me say one thing, it’s Frank. This is not philanthropy. We are very much doing this – that this stimulates demand. And by the way, we can’t prove that to ourselves by going back years because we’ve done this over-and-over and it does stimulate demand but it doesn’t do it in real time, there’s a lag involved in this process.
Mike Scarpelli: I will add. I think this is probably the biggest magnitude impact at one time in any platform improvement that we’ve done since I’ve been here.
I’m sure they believe that it stimulates demand but as noted, it’s a lagging process and there’s no guarantee they are correct. Just stating my reasons for not backing up the truck here. I would probably have purchased under $200 in the AH trading but alas I’m not that nimble and it opened around $220ish.