Some points from recent IR communication (Valorem)
- 120+ total employees and 40+ sales staff – ramping up this further – says its a lot of push work.
- However they seem to be seeing lot of demand from SMB where large peers do not have much focus per co, they count digital ocean as a competitor
*MRR (monthly run rate) should see secular growth here on - Might start concall this Qtr
- Doesn’t seem any exclusivity angle with Nvidia (yet to be validated by mgmt), however relationship and purchase size gets them meaningful discounts
- Growth cagr rates of 30-35% achievable, ebdita 50% type doable
- Revenue mix tilted towards GPU segment and would increase
- Capex heavy business – planning sizable capex in near future and primarily be debt funded (again this needs further validation by mgmt, however said is backed by demand) –
- Pricing and customizable plans per SMB(key target segment) is key differentiator per co – comes v cheap compared to biggies /more flexible plans/cust svc etc stand out compared to biggies (customer growth /churn wd b key metrics to track here)
- Blume exiting per VC own internal mandates
All in all it seems a play with demand tailwind and. couldn’t assess any major differentiator as such as of now, large opportunity size and some head start on latest offering stand out, will require capex to support this high growth(hence high dep), even though there are larger players – there is room for nimble small players esp in SMB segment which can offer relevant offerings at price point.
recently there is some heavy volume price action, however lot seems jobbing/intraday type, should reduce with full exit of Blume
IR is responsive and folks interested in co can write to them
D – small position, kindly apply your discretion with own analysis , some of above points need to be validated by mgmt directly
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