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>Elastic just dramatically raised its revenue guidance for FY2025...implying a massive acceleration in revenue growth that the 18% move in the stock underplayed.</li>
<li>Dynatrace is a wildly profitable software company trading at a significant discount to its Rule of 40 metrics.</li>
<li>The overall observability space is red hot, unimpacted by macro factors and being overlooked by software investors.</li>
</ul>


Elastic just dramatically raised its revenue guidance for FY2025...implying a massive acceleration in revenue growth that the 18% move in the stock underplayed.
Dynatrace is a wildly profitable software company trading at a significant discount to its Rule of 40 metrics.
The overall observability space is red hot, unimpacted by macro factors and being overlooked by software investors.


Observability Is Not Just Datadog: Why Elastic and Dynatrace Are Great Longs

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Algosun Global

<ul>
<li>
<a href="https://www.smartkarma.com/entities/splunk-inc" target="_blank" data-smartkarma-citation="entities:12849:1" rel="noopener">Splunk Inc (SPLK US)</a> , a leading American provider of machine-generated data platform and established software vendor, announced strong 1QFY23 earnings results. </li>
<li>Total revenues grew to $674M, up 34% YoY, the highest revenue growth rate for the last 3 years. Cloud revenues jumped by 66%, reflecting customer adoption of the cloud platform.</li>
<li>WSJ reported that Cisco made a <strong>$20B</strong>+ takeover offer for Splunk. However, no deal was on the table, but if talks resume, Cisco could pay $20B+, according to The NYT.   </li>
</ul>



Splunk Inc (SPLK US) , a leading American provider of machine-generated data platform and established software vendor, announced strong 1QFY23 earnings results. 
Total revenues grew to $674M, up 34% YoY, the highest revenue growth rate for the last 3 years. Cloud revenues jumped by 66%, reflecting customer adoption of the cloud platform.
WSJ reported that Cisco made a $20B+ takeover offer for Splunk. However, no deal was on the table, but if talks resume, Cisco could pay $20B+, according to The NYT.   


1QFY23 Revenue Growth Accelerated As Cloud-Driven Transformation Goes Well

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

<ul><li>Datadog continued with its strong revenue momentum and its revenue reported for the last quarter was $363 million, up 83% year over year and above the high end of the management guidance range.</li><li>Moreover, they had about 2,250 customers with an Annual Recurring Revenue (ARR) of $100,000 or more at the end of the quarter, up from 1,406 the previous quarter.</li><li>Datadog's business model demonstrates strong efficiencies, with a free cash flow of $130 million and a free cash flow margin of 36%.</li></ul>

Datadog continued with its strong revenue momentum and its revenue reported for the last quarter was $363 million, up 83% year over year and above the high end of the management guidance range.Moreover, they had about 2,250 customers with an Annual Recurring Revenue (ARR) of $100,000 or more at the end of the quarter, up from 1,406 the previous quarter.Datadog's business model demonstrates strong efficiencies, with a free cash flow of $130 million and a free cash flow margin of 36%.

Datadog Inc.: Deep Data Monitoring & Other Drivers

<ul>
<li>Revenue grew 69% YoY to $78M vs. consensus at $70M (+52%), with very impressive underlying growth metrics that show the larger customers are the fastest growing.</li>
<li>Increased selling through hyperscaler partners may aid S&amp;M leverage over time. </li>
<li>Acquisition of Opstrace accelerates the platform expansion into observability, but right now positioned vs. nonconsumption rather than against Datadog.</li>
</ul>


Revenue grew 69% YoY to $78M vs. consensus at $70M (+52%), with very impressive underlying growth metrics that show the larger customers are the fastest growing.
Increased selling through hyperscaler partners may aid S&amp;M leverage over time. 
Acquisition of Opstrace accelerates the platform expansion into observability, but right now positioned vs. nonconsumption rather than against Datadog.


<ul><li>Like most high-growth stocks, Datadog has also been going through rough patch on account of the rising interest rates and the geopolitical tensions though its fundamentals remain intact.</li><li>Its revenue increased by 84% year over year and 21% quarter over quarter to $326 million and business growth from existing customers exceeded the management's expectations.</li><li>In this report, we have carried out a fundamental analysis of the historical financial statements of the company.</li></ul>

Like most high-growth stocks, Datadog has also been going through rough patch on account of the rising interest rates and the geopolitical tensions though its fundamentals remain intact.Its revenue increased by 84% year over year and 21% quarter over quarter to $326 million and business growth from existing customers exceeded the management's expectations.In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

Datadog Inc.: Financial & Price Forecasts

United States

Datadog, Inc. provides software solutions. The Company offers cloud-based monitoring and analytics platform which integrates and automates infrastructure monitoring, application performance monitoring, and log management for real-time observability of customers. Datadog operates worldwide.

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Datadog (DDOG US)

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