Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Equity Bottom-Up

<ul>
<li>Freshworks, a cloud-based customer services software unicorn, held its first Investor Day on September 7, 2023. Management highlighted the long-term target to deliver the Rule of 40 by 2025. </li>
<li>The 2023 Investor Day agenda included company vision and strategy, solutions in action, strategy for durable growth, customer spotlight, and financial overview, among others. </li>
<li>Management plans to deliver a long-term balance of growth and profitability, with the 2026 model leading to an FCF margin of 20%+ and $1B+ revenue. </li>
</ul>


Freshworks, a cloud-based customer services software unicorn, held its first Investor Day on September 7, 2023. Management highlighted the long-term target to deliver the Rule of 40 by 2025. 
The 2023 Investor Day agenda included company vision and strategy, solutions in action, strategy for durable growth, customer spotlight, and financial overview, among others. 
Management plans to deliver a long-term balance of growth and profitability, with the 2026 model leading to an FCF margin of 20%+ and $1B+ revenue. 


Freshworks: 2023 Investor Day and Valuation Update

Stock Picking & Investing, BluSuit

BluSuit

Stock Picking & Investing

Financial markets, high growth & innovative business coverage, macro economics, trading strategy and market insight

<ul><li>Listening to sentiment alone would lead investors to believe we are 50% down on the S&amp;P 500 and we have another 50% to go.</li><li>But, this simply is not true. When benchmarking the markets recent price action by sector, this bear market, on a technical basis, has the hall marks of every market bottom since 2000.</li><li>Recollecting Howard Marks book, “Mastering the Market Cycle”, there was a particular part that was of importance.</li></ul>

Listening to sentiment alone would lead investors to believe we are 50% down on the S&amp;P 500 and we have another 50% to go.But, this simply is not true. When benchmarking the markets recent price action by sector, this bear market, on a technical basis, has the hall marks of every market bottom since 2000.Recollecting Howard Marks book, “Mastering the Market Cycle”, there was a particular part that was of importance.

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.

<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>Gitlab is down 61% since its IPO and trades at 16x forward sales, now reasonable for years of 40% like growth expected.</li>
<li>At $6B valuation, would make an attractive acquisition candidate for Google/Amazon or some of the growing DevSecOps players like Datadog.</li>
<li>Dynamic TAM with long runway ahead, very underpenetrated, strong secular tailwinds.</li>
</ul>


Gitlab is down 61% since its IPO and trades at 16x forward sales, now reasonable for years of 40% like growth expected.
At $6B valuation, would make an attractive acquisition candidate for Google/Amazon or some of the growing DevSecOps players like Datadog.
Dynamic TAM with long runway ahead, very underpenetrated, strong secular tailwinds.


Algosun Global

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hashicorp-inc" target="_blank" data-smartkarma-citation="entities:34919:1" rel="noopener">HashiCorp (HCP US)</a>  set terms for an upcoming IPO. The high-growth SaaS decacorn plans to offer 15.3 million shares at expected price range of $68.00-$72.00 per share. </li>
<li>Net proceeds from the offering may reach more than $1 billion at midpoint of the price range implying IPO valuation of ~$12.7 billion at $70.00 per share.</li>
<li>Our post-IPO illustrative valuation implies an upside of ~13%. However, we do not rule out <a href="https://www.smartkarma.com/entities/hashicorp-inc" target="_blank" data-smartkarma-citation="entities:34919:1" rel="noopener">HashiCorp (HCP US)</a>  shares may trade at the same multiples like GitLab.  </li>
</ul>



HashiCorp (HCP US)  set terms for an upcoming IPO. The high-growth SaaS decacorn plans to offer 15.3 million shares at expected price range of $68.00-$72.00 per share. 
Net proceeds from the offering may reach more than $1 billion at midpoint of the price range implying IPO valuation of ~$12.7 billion at $70.00 per share.
Our post-IPO illustrative valuation implies an upside of ~13%. However, we do not rule out HashiCorp (HCP US)  shares may trade at the same multiples like GitLab.  


HashiCorp IPO: Valuation Update. Expecting To Raise $1B+ In The Offering

United States

GitLab Inc. designs and develops software solutions. The Company offers platform for authentication, authorization, devops score, audit, and value stream management. GitLab serves customers worldwide.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Gitlab (GTLB US)

Freshworks: 2023 Investor Day and Valuation Update

2023 Investor Day highlights massive TAM, ongoing business momentum, adoption of multi-product strategy, and AI monetization opportunities: PT...

Andrei Zakharov

We are Not Crashing, It's Just Volatile

When benchmarking the markets recent price action by sector, this bear market, on a technical basis, has the hall marks of every market bottom...

BluSuit

Gitlab 4Q22 Earnings: Impressive

Gitlab's 4Q22 earnings were impressive. Despite still in heavy loss mode, its best in class NRR and an accelerating adoption of higher priced tiers...

Aaron Gabin

Recent IPO Insights: Gitlab

Gitlab is down 61% since its IPO and trades at 16x forward sales, reasonable for 40% like growth expected. At $6B , would be acquisition candidate...

Aaron Gabin

HashiCorp IPO: Valuation Update. Expecting To Raise $1B+ In The Offering

Keeping in mind HashiCorp plans to raise more than $1 billion in the offering, we expect strong investor demand for the upcoming IPO

Andrei Zakharov

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)