TMT & Consumer Independent Equity Research Analyst, Obex Capital Research

Aaron Gabin

TMT & Consumer Independent Equity Research Analyst

TMT & Consumer Independent Equity Research

Obex Capital Research

“Obex” is Latin for Barriers to Entry. Obex Capital Management’s investment philosophy is driven by an intense focus on which business model’s Barriers to Entry are able to withstand the ever increasing competitive disruption in the TMT and Consumer Sectors.

Equity Bottom-Up

<ul>
<li>Crowdstrike printed another strong quarter, continues to beat and raise despite overblown competitive concerns.</li>
<li>Revenue growth (+64%), Margin expansion (+520bps) and FCF generation (32% FCF margins) shows best in class rule of 40 SaaS metric.</li>
<li>Humio continues to show great traction, achieved 6 month signup target in 6 weeks.</li>
</ul>


Crowdstrike printed another strong quarter, continues to beat and raise despite overblown competitive concerns.
Revenue growth (+64%), Margin expansion (+520bps) and FCF generation (32% FCF margins) shows best in class rule of 40 SaaS metric.
Humio continues to show great traction, achieved 6 month signup target in 6 weeks.


Crowdstrike FY3Q22: Platform, Not Endpoint

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Capital Markets

Crowdstrike Holdings  / Equity Capital Markets

<ul><li>This is our first report on CrowdStrike Holdings which has been one of the greatest tech stories in the past year.</li><li>The company is a California-based mission-critical software-as-a-service (SaaS) player which was among the first cloud-native SaaS endpoint security platforms providing cloud workload and endpoint security, cyberattack response services and threat intelligence.</li><li>Its cybersecurity, cloud security and threat intelligence solutions cater to the particularly fast-growing ransomware market.</li></ul>

This is our first report on CrowdStrike Holdings which has been one of the greatest tech stories in the past year.The company is a California-based mission-critical software-as-a-service (SaaS) player which was among the first cloud-native SaaS endpoint security platforms providing cloud workload and endpoint security, cyberattack response services and threat intelligence.Its cybersecurity, cloud security and threat intelligence solutions cater to the particularly fast-growing ransomware market.

Crowdstrike Holdings Inc. - Investment Thesis

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Algosun Global

San Francisco-based <a href="https://www.smartkarma.com/entities/amplitude-inc" target="_blank" data-smartkarma-citation="entities:34148:1" rel="noopener">Amplitude (AMPL US)</a> , best-in-class product analytics and digital optimization technology unicorn, filed for a direct listing and expects their Class A common stock to begin trading on September 28, 2021. The company has registered up to ~35.4M shares to sell in the direct listing with the reference price to be announced. Amplitude plans to list their Class A shares on the Nasdaq Capital Market under the symbol “AMPL”. Direct listing means that there will be no book building process and none of the existing shareholders will be subject to 180-day contractual lock-up agreement. Morgan Stanley, Bank of America, Citigroup, KeyBanc Capital Markets, Baird, UBS and William Blair will serve as financial advisors.

San Francisco-based Amplitude (AMPL US) , best-in-class product analytics and digital optimization technology unicorn, filed for a direct listing and expects their Class A common stock to begin trading on September 28, 2021. The company has registered up to ~35.4M shares to sell in the direct listing with the reference price to be announced. Amplitude plans to list their Class A shares on the Nasdaq Capital Market under the symbol “AMPL”. Direct listing means that there will be no book building process and none of the existing shareholders will be subject to 180-day contractual lock-up agreement. Morgan Stanley, Bank of America, Citigroup, KeyBanc Capital Markets, Baird, UBS and William Blair will serve as financial advisors.

Founder-Led Unicorn And Leader In Product Analytics

Our favorite quote from the conference call was Crowdstrike CEO George Kurtz throwing shade at recent (wildly unprofitable) security rival IPO SentinelOne:“I think if you buy into the marketing hype, that's one thing. But if you look under the covers, we have more automation by far than any other competitor, including SentinelOne. So on the pricing standpoint, we sell on value, and we routinely win with a higher price point because the product works. It doesn't blow up machines, it's scalable. There's a difference between a Fiero and Ferrari. And we happen to be the Ferrari model, and that's what a lot of customers want.”Indeed, Crowdstrike is the Ferrari of security software...and probably all of software. We continue to stay long and would buy any pullbacks.<div class="content-highlight">Obex’s fundamental research process is focused on secular change in the TMT and Consumer sectors. We seek to differentiate between fundamental business analysis and security analysis. Before deciding if a security’s pricing and positioning merit a long or short position, we analyze the four pillars of business fundamentals (Secular Factors, TAM, Competitive Advantage, Business Model) in order to determine if this is a “good” or “not so good” opportunity.</div>

Our favorite quote from the conference call was Crowdstrike CEO George Kurtz throwing shade at recent (wildly unprofitable) security rival IPO SentinelOne:“I think if you buy into the marketing hype, that's one thing. But if you look under the covers, we have more automation by far than any other competitor, including SentinelOne. So on the pricing standpoint, we sell on value, and we routinely win with a higher price point because the product works. It doesn't blow up machines, it's scalable. There's a difference between a Fiero and Ferrari. And we happen to be the Ferrari model, and that's what a lot of customers want.”Indeed, Crowdstrike is the Ferrari of security software...and probably all of software. We continue to stay long and would buy any pullbacks.Obex’s fundamental research process is focused on secular change in the TMT and Consumer sectors. We seek to differentiate between fundamental business analysis and security analysis. Before deciding if a security’s pricing and positioning merit a long or short position, we analyze the four pillars of business fundamentals (Secular Factors, TAM, Competitive Advantage, Business Model) in order to determine if this is a “good” or “not so good” opportunity.

Crowdstrike FY2Q22: The Ferrari of Security Platforms

Latest News from the World’s Leading Innovators

Granite Bay Capital

An innovation focussed investment company

Granite Bay Capital is an innovation focussed investment company with a deep focus on the companies at the leading edge of innovation across major themes such as AI, ubiquitous computing, sustainability, automation and longevity.

Thematic (Sector/Industry)

Headline Developments: Another week, another major cyber attack!  Last Friday, a global ransomware attack hit up to 1,500 companies in what is believed to be the biggest supply chain attack to date.  In the attack, American software company Kaseya was compromised, opening a door for hackers to spread ransomware to managed service providers that use it’s technology, and in turn their clients.

Headline Developments: Another week, another major cyber attack!  Last Friday, a global ransomware attack hit up to 1,500 companies in what is believed to be the biggest supply chain attack to date.  In the attack, American software company Kaseya was compromised, opening a door for hackers to spread ransomware to managed service providers that use it’s technology, and in turn their clients.

United States

VMware, Inc. provides virtualization solutions from the desktop to the data center. The Company's solution products addresses a range of IT problems, which includes cost and operational inefficiencies, business continuity, software lifecycle management and desktop management.

Electronic Arts Inc. develops, publishes, and distributes branded interactive entertainment software worldwide for video game consoles, personal computers, handheld game players, and cellular handsets. The Company also provides online game-related services.

Aspen Technology, Inc. provides software solutions. The Company offers asset optimization software that optimizes asset design, operations, and maintenance in complex, industrial environments to enable organizations to meet their business goals for sustainability and profitability. Aspen Technology serves customers worldwide.

Check Point Software Technologies Ltd. develops, markets and supports a range of software and hardware products and services for information technology (IT) security and offers its customers a network and gateway security solutions, data and endpoint security solutions and management solutions.

SS&C Technologies Holdings, Inc. develops and markets computer software for financial services providers.  The software enables trading and modeling, portfolio management and reporting, accounting, performance measurement, reconciliation, reporting, processing, and clearing.

Fair Isaac Corporation provides analytics, including predictive modeling, decision analysis, intelligence management, decision management systems, and consulting services.  The Company helps companies in countries around the world acquire customers more efficiently, increase customer value, reduce fraud, lower operating expenses, and enter new markets more profitably.

Synopsys, Inc. supplies electronic design automation solutions to the global electronics market.  The Company provides design technologies to creators of advanced integrated circuits, electronic systems, and systems on a chip. Synopsys also provides consulting services and support to its customers to streamline the overall design process and accelerate time to market.

Activision Blizzard, Inc. publishes, develops, and distributes interactive entertainment software and peripheral products. The Company's products cover diverse game categories, including action/adventure, action sports, racing, role playing, simulation, first-person action, music-based gaming and strategy.

Workday, Inc. provides enterprise cloud-based applications. The Company offers human capital, spend, and financial management, as well as payroll, initiatives and higher education solutions. Workday serves the finance, healthcare, manufacturing, education, and technology industries worldwide.

Manhattan Associates, Inc. provides information technology solutions for distribution centers.  The solutions are designed to enable the efficient movement of goods through the supply chain.  The Company's solutions optimize the receipt, storage, and distribution of inventory, as well as manage equipment and personnel within a distribution center.

Xero Limited offers an online accounting system.  The software features bank transaction importing, a cashbook, a general ledger, invoicing, accounts receivable, accounts payable, financial reporting, and management of expense claims.

Nintendo Co., Ltd. globally develops, manufactures and sells home-use video game hardware and software in home entertainment business.  The company also produces home-game products including cards.

Nexon Co., Ltd. mainly develops and services, online games for PC and mobile devices. The company also offers consulting services related to online-games. Nexon operates in Japan.

IFLYTEK Co., Ltd. specializes in speech intelligence and artificial intelligence technology.  The company also develops chip product, voice messaging software and e-government system integration software.

Dassault Systemes operates as a software company. The develops and offers 3Dexperience platform to create innovative new products and services using virtual experiences. Dassault Systemes serves aerospace, construction, business services, consumer packaged goods, high-tech, life science, health care, marine, energy, and industrial equipment industries worldwide.

The Sage Group plc is a software publishing company. The Group develops, publishes and distributes accounting and payroll software for personal computer systems. Via its subsidiaries, Sage also maintains a registered user database which provides a market for their related products and services, including computer forms, software support contracts, program upgrades and training.

WiseTech Global Pty Ltd provides various technology and information technology management solutions. The Company offers cloud based various technology platforms, market specific software and logistics technology solutions, such as edienterprise, a platform supply chain logistics management system, software-as-a-service, and clinical management software. 

Constellation Software Inc is a software holding company.  The Company acquires mission-critical, vertical market software companies, and helps them to grow.

Spotify Technology S.A. provides music streaming services. The Company offers commercial free music and ad-supported services to subscribers. Spotify Technology serves clients worldwide.

Dassault Systemes is a technology company. The company provides software applications services designed to support client company's innovation processes. The company's line of business includes provision of 3D design software, 3D digital mock up and product lifecycle Management. Dassault Systemes also provides several software brands.

CrowdStrike Holdings, Inc. provides cybersecurity products and services to stop breaches. The Company offers cloud-delivered protection across endpoints, cloud workloads, identity and data, and leading threat intelligence, managed security services, IT operations management, threat hunting, Zero Trust identity protection, and log management. CrowdStrike serves customers worldwide.

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Crowdstrike Holdings (CRWD US)

Crowdstrike FY3Q22: Platform, Not Endpoint

Another strong beat and raise despite overblown competitive concerns. Revenue growth (+64%), Margin expansion (+520bps) and FCF generation (32% FCF...

Aaron Gabin

Crowdstrike Holdings Inc. - Investment Thesis

This is our first report on CrowdStrike Holdings which has been one of the greatest tech stories in the past year. The company is a...

Baptista Research

Founder-Led Unicorn And Leader In Product Analytics

Amplitude, the growth engine for digital products, will go public via direct listing and we think its fully SaaS, cloud-native product with...

Andrei Zakharov

Crowdstrike FY2Q22: The Ferrari of Security Platforms

Crowdstrike had another monster beat and raise quarter. It is the most deserving of any software company with an extreme valuation. Stay Long.

Aaron Gabin

Weekly Innovation Review (WIRE) #39

Headline Developments: Another week, another major cyber attack! Last Friday, a global ransomware attack hit up to 1,500 companies

Granite Bay Capital

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