@aojha, as you understand the business model of 8k, wanted to have your insights on the following:
- What is the kind of customer stickiness in the space where 8K provides cloud data management services and is it repetitive revenue for 8k or one time. Can their customers switch to some other company easily, basically want to understand their strengths in generating revenues consistently.
- Their operating margins are near 30% range – can 8k continue to sustain such margins as they scale up and look for new clients and if you can explain this little more as to what makes them command this margin profile.
- There does not appear to be listed companies exclusively operating in this space, so what is the kind of competition they face. Any other companies to your knowledge which are developing cloud data capabilities. Are Persistent Systems etc not providing similar services. It’s not very often that you find small companies quoting at 10x sales that 8k does.
Disc: Not invested.
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