@KairosPraxis@wolfofharcourt That makes some sense given their cloud transition and one-time non-reoccuring material rights, but the trend would tell you the same story. I'm looking for FCF to be >20% permanently from Q2 on. Accelerated ARR growth from the AI spending is acceptable too.
@wolfofharcourt@KairosPraxis Thanks for the response. Yea, ideally it's next to 0%, but it's not hard to find way more egregious offenders. The trend suggests management is pulling all the right levers to reach GAAP profitability "soon".
@wolfofharcourt@KairosPraxis sbc was lower on a $ basis in 1Q27 than it was 1Q26 and it was the lowest as a percentage of revenue it's ever been. In fact, it's been aggressively trending downward nearly every quarter. Honest question, am I missing something?
@StockMarketNerd@sarubactam where did you get the $85M net new ARR estimate for Q1? They only give yearly guidance? Last year they did ~24% of FY26 net new ARR in Q1. Applying 24% to their full year guide of $1834M (midpoint) I'm getting $89.XXM. Just wondering how you got it. Thanks.
@wolfofharcourt@fiscal_ai This is part of it, which is why it's red today imo:
"Adjusting for the benefit from material rights in Q2, total revenue grew approximately 44%"
They said Q3 will be soft too, but Q4 will be huge.
Still not bad. I'm adding a few shares.
6.3% vs 2.8% S&P
I love a good rally, but it feels like everything not named NVDA is going up every day.ย
85% invested in case it never stops
15% cash b/c I like a good deal
Best of luck the rest of the year to all.
@dhaval_kotecha Curious about ZS and DDOG positions Dhaval. Looks a bit more challenging than we hoped several years back, but did you decide to sell out completely?
Snuck away with a 2pt win this yearย
27% vs 25% S&P
Adds: MELI, S, MNDY
Trims: AXON, TTD, NET, HUBS
Nibbling: CXDO, RXST, SPGI, AMZN, GOOG
Best of luck to everyone in 2025!