With reference to the con call and points raised here.
- Exclusivity with Nvidia – in a market where demand-supply dominance keeps alternating, exclusivity isn’t necessary a good thing and flexibility to source from wherever available is the right strategy.
- Capex – loosely put couple of hundred crores; they have not thought out this wanted to communicate the 30-40% growth as the key theme.
- Infra utilization – they rent DC and invest in GPUs, Network, etc. They couldn’t give sense on utilization, but given they are looking for growth and investing in Capex utilization is likely to be high
- Churn – They didn’t give a number and mentioned how churn may not be a simple metric to calculate. Next time, let’s push for a 1-year retention number as that will take care of anomalies of lumpy demand across quarter.
- USP is a tough thing to articulate for anyone. They spoke of their cost / price advantage (which is key) and customization for the target segment which is mid-market.
This company is tiny at this point in time, but a good acquisition target at some point provided they keep scaling. Given their market penetration, growth should be possible over foreseeable future.
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